The Federal Government has defended its £746 million port modernisation agreement with the United Kingdom, maintaining that the deal is balanced and will deliver significant economic benefits to Nigeria despite concerns over potential advantages for foreign partners.
The agreement, valued at approximately $997 million, is targeted at upgrading the Apapa and Tin Can Island ports—two of Nigeria’s busiest maritime gateways—in a move expected to enhance trade efficiency, reduce congestion and generate employment.
Responding to criticisms on Tuesday, the Ministry of Finance dismissed claims of imbalance, stressing that the partnership is mutually beneficial.
“This is not a zero-sum arrangement. Global partnerships deliver different but complementary benefits,” the ministry said.
According to the ministry, Nigeria stands to benefit from modern and efficient port infrastructure that will boost productivity and ease congestion. It added that businesses will enjoy reduced logistics costs, while thousands of jobs are expected to be created across construction, logistics and allied sectors.
The government also noted that the project would strengthen Nigeria’s trade competitiveness, creating new opportunities for local businesses under the African Continental Free Trade Area (AfCFTA) and in global markets, while also attracting further investments.
On the gains for foreign partners, the ministry explained that they would participate in project financing and execution, as well as access industrial and commercial opportunities.
Summarising the expected outcome, the ministry stated: “Nigeria secures critical infrastructure upgrades without delay, enabling faster economic transformation.”
The government emphasised that the initiative directly addresses longstanding inefficiencies in Nigeria’s port system. It noted that Apapa and Tin Can Island ports currently handle about 70 per cent of the country’s trade, making the upgrade critical.
It added that the reforms would complement ongoing digital transformation efforts and unlock value across trade, logistics, industry and employment.
“Most importantly, it reduces the hidden ‘congestion tax’ borne by Nigerian businesses,” the ministry said.
A key objective of the reform is to drastically cut cargo dwell time, which currently ranges between 18 and 21 days—well above the global average of about four days. The government aims to reduce this to less than seven days by 2026.
“Nigeria’s reform programme is designed to reduce cargo dwell time from 18–21 days to under 7 days by 2026, align Nigeria closer to global benchmarks, and deliver faster clearance times, lower logistics costs, and improved reliability for businesses,” the ministry added.
The port upgrade forms part of a broader reform agenda under the administration of President Bola Ahmed Tinubu, including the rollout of the National Single Window—a digital platform designed to streamline trade documentation and regulatory processes.
Officials explained that documentation and regulatory bottlenecks currently account for about 73 per cent of cargo delays at Nigerian ports, a challenge the new system is expected to address through electronic processing, transparency and efficiency.
They stressed that both digital and physical reforms must work in tandem to achieve meaningful results.
“Without the National Single Window, ports remain congested due to slow documentation. Without port upgrades, digital efficiency is undermined by physical bottlenecks. Together, they deliver end-to-end efficiency across Nigeria’s trade value chain,” the ministry said.
The government expressed confidence that the combined impact of these reforms will lower the cost of goods, increase trade volumes, improve access to raw materials for manufacturers, expand export opportunities, and boost government revenue through enhanced compliance and efficiency.
