Federal Government Announces Q2 2026 Start for Apapa and Tin Can Ports Upgrade
The federal government has officially announced that the long-awaited upgrade of Apapa and Tin Can Island ports in Lagos will commence in the second quarter of 2026. This major infrastructure project is set to be completed within a 48-month timeline, marking a significant step forward for Nigeria's maritime sector.
UK-Backed Financing to Support Port Redevelopment
This development follows a £746 million export finance agreement signed between Nigeria and the United Kingdom on March 19, 2026. The deal is designed to support the rehabilitation of these two critical port facilities. Under the agreement, UK Export Finance (UKEF) will guarantee loans for the refurbishment of the Apapa and Tin Can Island port complexes.
Additionally, the contract includes a provision for British Steel to supply 120,000 tonnes of steel, valued at £70 million, for the project. Officials have noted that this arrangement is expected to generate approximately £236 million in supply contracts for British firms, with at least 20 percent of project components to be sourced from the United Kingdom.
Work Expected to Begin Next Quarter
Speaking on Channels Television, Bolaji Akinola stated that the project will commence once the financing processes are fully concluded. Akinola expressed optimism that construction will begin in the next quarter, highlighting that the agreement with Citibank and UKEF has effectively addressed previous funding concerns.
He further added that once work begins, the project is projected to be completed within four years, ensuring a timely enhancement of port operations.
Upgrade to Allow Larger Vessels
The special adviser explained that the upgrade will include dredging of port channels to accommodate bigger vessels. Currently, the draft level at Lagos ports stands at about 13 metres, but this will be increased to at least 16 metres after the upgrade.
This improvement will enable the ports to receive larger ships capable of carrying between 10,000 and 20,000 twenty-foot equivalent units (TEUs), significantly boosting cargo handling capacity and efficiency.
Stakeholders Highlight Need for Modernisation
Reacting to the development, Boma Alabi noted that the project offers renewed hope for the maritime sector. Alabi pointed out that both Apapa and Tin Can Island ports have not undergone major upgrades in over 15 years, despite increasing trade volumes and population growth.
She added that neighbouring countries that have invested in port infrastructure are already benefiting from improved trade capacity, underscoring the urgency of this upgrade for Nigeria.
Meanwhile, Wale Edun stated that the agreement aligns with the government's focus on infrastructure, energy, and industrial development. Edun explained that strengthening bilateral partnerships will help attract the level of investment needed to stimulate economic growth, create jobs, and reduce poverty in line with the administration's renewed hope agenda.
Dangote Hails Tinubu's UK Visit
In related news, Nigerian industrialist Aliko Dangote praised President Bola Tinubu's UK visit, describing it as a boost for investment opportunities. The chairman of Dangote Group of Industries referred to the £746 million infrastructure agreement as a strong vote of confidence in Nigeria.
Dangote emphasized that securing such funding from the United Kingdom was not easy, especially given global economic pressures. He explained that this development demonstrates confidence in Nigeria's leadership and ongoing infrastructure projects, highlighting the positive impact on the nation's economic prospects.
