FG Approves $1 billion for Lagos Ports Upgrades

The federal government has approved a sum of one billion dollars (N1.4 trillion) for the modernisation of the Apapa and TinCan Island seaports in Lagos, the main commercial entry points into Nigeria’s economy.

This was stated by Adegboyega Oyetola, minister of Marine and Blue Economy on Wednesday at the Chartered Institute of Logistics and Transport (CILT) Nigeria Conference in Lagos.

He said the upgrades will improve cargo handling and expand capacity to meet global standards, part of the goals contained in the ministry’s 10-year marine and blue economy strategy.

“We are working closely with all stakeholders to achieve a paperless, technology-driven port environment that enhances efficiency, reduces turnaround time, and curbs corruption,” Oyetola said.

He added that the government had begun a procurement process to commence similar modernisation projects at ports outside Lagos, to ensure balanced development.

While the federal government didn’t disclose many details about the project, including a timeline, an earlier report by Africa Intelligence in March disclosed that a $700 million contract to renovate Lagos ports was awarded to ITB Nigeria, a construction company owned by Gilbert Chagoury, a Lebanese-Nigerian businessman with close ties to President Bola Tinubu.

Read also: Chagoury Group’s ITB gets $700m Lagos ports renovation contract

The Lagos port renovation project was expected to begin in the second quarter of 2025, financed through a loan from Nigeria’s Citibank, backed by UK Export Finance.

The report also noted that Afreximbank offered financial support, while APM Terminals, the operator of Apapa port and a subsidiary of Maersk, has proposed a $500 million investment. In 2006, APM Terminals paid nearly $1 billion for a 25-year concession at Apapa port.

The minister, during the meeting, affirmed that his ministry is creating an enabling environment for private sector investment through “regulatory reforms, public-private partnerships (PPP), and targeted incentives aimed at driving innovation and job creation.”
Chagoury has enjoyed a frontman role in Lagos’ infrastructure projects, including road construction in Victoria Island and Ikoyi, as well as the Eko Atlantic project. His companies are also leading the first phase of the Lagos-Calabar coastal road.

Lagos ports, despite being among the most expensive and oldest in the world, remain a key entry point for companies investing in Africa. Regulatory fees and customs charges are high, yet global shipping firms continue to maintain operations, as the freight revenue flows in.

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