To improve Nigeria’s port infrastructure, President Bola Tinubu has successfully negotiated a large $600 million investment from the Danish shipping behemoth A.P. Moller-Maersk. This statement was made in Riyadh, Saudi Arabia during a side event of the World Economic Forum Special Meeting on Global Collaboration, Growth, and Energy for Development, where Mr. Robert Maersk Uggla, Chairman of A.P. Moller-Maersk, was present.
With this additional investment, Nigeria would be able to accommodate more container shipping at its ports, supporting President Tinubu’s administration’s ongoing $1 billion drive to rehabilitate seaport infrastructure throughout the country’s eastern and western regions. The investment intends to establish a nationwide single window initiative, modernize and automate port processes, and greatly increase efficiency and transparency. The goal of this initiative is to lessen corruption, facilitate trade, facilitate import and export, and increase the general effectiveness of port operations in Nigeria.
President Tinubu acknowledged the strategic importance of this investment and expressed gratitude for the long-standing business relationship with Maersk in a statement issued by Chief Ajuri Ngelale, the President’s Special Advisor on Media and Publicity. “A wager on Nigeria is a winning wager,” Tinubu declared, highlighting the positive outlook for investors in Nigeria and pledging to carry out more changes to create a favorable environment that encourages more investments.
The President told Maersk that his administration is committed to creating a setting that is favorable to industry, promotes growth, and lessens the need for smaller trans-shipment procedures, which entail moving cargo from bigger to smaller ships. He cited the development of the Ogun State container port in collaboration with Maersk as an example of a successful partnership.
Chairman Uggla saw the strategic significance of expanding Nigeria’s port infrastructure to support bigger container ships, as this would help the country meet its increasing demand while cutting expenses associated with logistics. He described his plan for Nigerian ports, especially those in Lagos, to grow into bigger logistics centers that can accommodate more ships. As Uggla pointed out, “the expansion potential is hard to define,” highlighting the wide range of potential possibilities for Nigeria’s maritime infrastructure.
A.P. Moller-Maersk has committed almost $2 billion in port and associated investments in Nigeria over the years, demonstrating the company’s strong commitment to the nation’s economic growth. “Nigeria should have the best and biggest port because it is the most populous country in Africa,” Uggla said, reiterating his company’s commitment to keep making investments in the region.
Nigeria’s goal to become a key participant in international marine logistics is expected to be greatly supported by the $600 million investment. It is consistent with President Tinubu’s overall economic plan to improve the country’s infrastructure and draw in more foreign investment, and eventually establish Nigeria as a major hub for trade within and between Africa.
