On Thursday, Nigeria and Britain announced a £746 million ($990 million) export finance deal to fund the rehabilitation of two of Nigeria’s main trading ports, the highlight of President Bola Tinubu’s state visit to the United Kingdom.
The financing arrangement, backed by UK Export Finance (UKEF), will support the rehabilitation of the Lagos Port Complex, Apapa, and the TinCan Island Port Complex. While the project has been in motion since last year, details of the deal have only now become clearer.
Under the contract, a British firm will supply 120,000 tonnes of steel to Nigerian contractors Hitech Construction and ITB Nigeria, which are handling the port upgrades.
UK Business and Trade Secretary Peter Kyle said the deal underscores the strength of economic ties between both countries.
“Hot on the heels of our landmark Steel Strategy, this is a major win for British Steel made possible by UK Export Finance, which is testament to the quality of UK-made steel and the booming UK–Nigeria relationship,” he said.
The financing, arranged by Citibank’s London branch, comes with conditions that ensure a portion of the project benefits UK suppliers.
At least £236 million of the overall contract is expected to go to British companies, according to UK officials.
UKEF chief Tim Reid said the agreement “demonstrates the full capacity of UK Export Finance to unlock transformational opportunities for British businesses, while supporting sustainable economic growth in key markets.”
On the Nigerian side, officials say the project is central to improving trade logistics in Africa’s largest economy.
Minister of Marine and Blue Economy Adegboyega Oyetola said modernising the ports would “lay the foundation for a new era of efficiency, transparency and competitiveness.”
“Modern infrastructure, supported by digitalised and automated processes, will transform the way our ports operate and strengthen Nigeria’s position as a leading maritime hub in West and Central Africa,” he said.
The government expects the upgrade to cut cargo delays, reduce demurrage costs and improve the flow of imports and exports—long-standing challenges for Nigerian businesses.
Understanding the deal
The core financing arrangement is not new. The port rehabilitation project was approved last year and is being funded through loans backed by UKEF.
What is new is the clearer breakdown of who benefits—particularly the confirmed supply contracts flowing to UK firms.
The structure of the deal works as follows:
Nigeria is receiving $990 million to upgrade the two ports. The funding is a loan provided by Citibank’s London branch and guaranteed by UK Export Finance (UKEF). The closest equivalent of UKEF in Nigeria is the Nigerian Export-Import Bank (NEXIM), the country’s export credit agency, which provides financing to exporters. However, while NEXIM supports Nigerian businesses, UKEF primarily backs foreign projects on the condition that UK companies benefit.
In agreeing to support the Nigerian port financing, the UK secures economic returns. Although Nigeria will repay the full loan with applicable interest, a portion of the contract must go to UK companies.
Specifically, of the total £746 million, at least £236 million is earmarked for British firms supplying materials and services for the project.
Within that amount is a £70 million contract awarded to British Steel to supply 120,000 tonnes of steel billets for the upgrades.
UK officials praised the deal, describing it as a major boost for domestic industry.
British Steel chief executive Allan Bell said: “This is a record-breaking contract for British Steel and a major boost to our 4,000 employees and many more people in our supply chains.
“As one of the largest ever orders for billet in the history of this company, it marks a tremendous vote of confidence in British Steel and UK manufacturing.”
Richard Hodder, Global Head of Export & Agency Financing at Citi, said: “Citi has been present in Nigeria for over 40 years and is delighted to support NPA and the Federal Government of Nigeria in the financing of this critical infrastructure project which will deliver significant economic benefits to the Nigerian economy over the coming years.
“As the Coordinator of the transaction, we are pleased to have worked in close partnership with the team at UKEF to deliver one of the largest Export Credit Agency-supported Buyer Credit Facilities ever seen in West Africa.”
He added that the deal reflects UKEF’s expanding footprint in the region, noting that since 2018 its support for West and Central Africa has grown by more than £3 billion.
Tim Reid, CEO of UK Export Finance, said: “This deal represents a milestone for UK–Nigeria trade relations and demonstrates the full capacity of UK Export Finance to unlock transformational opportunities for British businesses, while supporting sustainable economic growth in key markets.
“With over £200 million feeding back to British companies, including one of the largest steel billet contracts in British Steel’s history and our new Memorandum of Understanding, UKEF is laying the foundations for a deeper, long-term relationship with Nigeria.”
Contractors for the job?
On the Nigerian side, the construction contracts are being executed by Hitech Construction and ITB Nigeria, both owned by the Chagoury Group, controlled by businessman Gilbert Chagoury, a long-time ally of President Tinubu.
The group has been involved in other major infrastructure projects, including the Lagos-Calabar coastal highway, drawing scrutiny over the concentration of high-value contracts.
President Tinubu in January conferred Nigeria’s second-highest national honour on Mr Chagoury as the Lebanese-Nigerian billionaire turned 80.
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