Nigeria secures $600m investment from Maersk to expand seaport infrastructure

Nigeria has secured a $600 million investment from A.P Moller-Maersk, a Danish shipping and logistics company, for seaport infrastructure.

According to a statement by Ajuri Ngelale, the presidential aide, Robert Uggla, chairman of A.P Moller-Maersk, made the investment commitment during a meeting with Tinubu on the sidelines of the World Economic Forum (WEF) in Saudi Arabia on Sunday.

The president said the investment is meant to expand existing port infrastructure to accommodate more container shipping services in Nigerian ports.

He said the investment would complement his administration’s ongoing $1 billion investment in seaport reconstruction across the eastern and western seaports of Nigeria.

Tinubu said the funds would further support Nigeria’s port modernisation efforts and port process automation through his administration’s implementation of the national single window project.

“We appreciate your business and the contribution you have made and continue to make to our country’s economy over time. We do not take our partners for granted,” he told Uggla.

“A bet on Nigeria is a winning bet. It is also a bet that rewards beyond what is obtainable elsewhere.

“More investment opportunities are available, and my government has worked on various reforms to encourage investments.

“We need to encourage more opportunities for revenue expansion and minimise trans-shipments from larger ships to smaller ships.”

Tinubu assured Uggla of his administration’s commitment to collaborating and creating an enabling environment for businesses to thrive in the country —

He cited Maersk’s previous partnership in the development of the Ogun state container terminal as a testament to fruitful partnerships with the reputable logistics company.

Highlighting Maersk’s longstanding engagement in Africa’s most populous nation and his belief in the future of Nigeria, Uggla said his company had made significant investments of over $2 billion in Nigerian ports and other activities.

Uggla, who acknowledged the potential for Nigerian ports to accommodate larger container ships, stressed the need for expanding port infrastructure to meet demand, while reducing the cost of logistics.

“We have seen a significant opportunity for Nigeria to cater for larger container ships. Historically, most of the West African coasts are already served by smaller ships,” Uggla said.

“Currently, we see an opportunity to deploy larger ships to Nigeria.

“To achieve this, we need to expand the port infrastructure, especially in Lagos, where we need a bigger hub for logistics services. The growth potential is hard to quantify.

“We believe in Nigeria, and we will invest $600 million in existing facilities and make the ports accommodating for bigger ships.”

Uggla further said given that Nigeria is the most populous country in Africa, the country should have the best and biggest port and we are very eager to invest.

He said the firm would continue to dialogue with the relevant Nigerian authorities to explore further investment opportunities.