Nigeria is betting on the £746 million loan-backed upgrade of the Apapa and Tin Can Island ports in Lagos to generate enough economic value to justify its financing, finance minister Taiwo Oyedele said on Wednesday.
Defending the United Kingdom-sourced financing deal during a presentation of the progress of President Tinubu’s reforms since 2023, Oyedele, who assumed office in April this year, said borrowing to develop infrastructure was not a burden if the resulting asset was profitable enough.
‘There’s nothing wrong in finding the person with money to help you solve a problem that you have in a way that that project is self-financing. Imagine you take $1 billion to develop your ports and that port generates a value of more than $1 billion,’ he said.
The financing deal, backed by UK Export Finance and arranged by Citibank, was signed in March during Tinubu’s visit to the UK, a first by a Nigerian president in 37 years.
It includes at least £236 million in contracts for British suppliers, including British Steel, which was reeling from decades of decline, while Nigeria is expected to benefit from improved port infrastructure and more efficient cargo handling.
Oyedele called the deal a ‘win-win’ for both countries, arguing that the outcome of the deal would ultimately be visible in the physical development and performance of the ports.
Specific operational timelines for the project completion, including the interest rate and repayment timeline for the loan have not been publicly disclosed.
The federal government had announced that the upgrades will commence in the second quarter of 2026. That deadline has now been missed.