UK, Nigeria Seal £746M Deal During Nigeria's State Visit

Britain and Nigeria annouced their agreement on March 19 to a £746 million ($990.32 million) export finance deal to refurbish two of Nigeria’s main ports, the Lagos Port Complex and TinCan Island Port Complex.

The financing will be guaranteed by UK Export Finance, with Citibank coordinating and arranging the loan structure.

The agreement is expected to generate £236 million in supplier contracts for British companies, including a £70 million contract for British Steel.

The UK government described the latter as a significant boost to its domestic steel sector, coinciding with a new national strategy aimed at supporting the struggling industry.

The deal was announced during President Bola Ahmed Tinubu’s state visit to the United Kingdom, the first such visit in 37 years, hosted by King Charles at Windsor Castle and focused on expanding cooperation in trade, defense, and diplomacy.

The modernization of Lagos ports targets critical bottlenecks in Nigeria’s maritime trade system. The Lagos Port Complex and TinCan Island handle a large share of the country’s imports and exports, making their efficiency central to economic performance.

The financing structure reflects a model in which UK-backed credit supports overseas infrastructure while securing contracts for domestic suppliers.

The £746 million package translates into nearly $1 billion in investment tied to port refurbishment, logistics upgrades, and operational improvements.

Citibank’s role as coordinator highlights the involvement of international financial institutions in structuring cross-border infrastructure deals of this scale.

King Charles framed the agreement as reciprocal economic engagement, stating: “Nigeria is investing in Britain’s future as much as Britain is investing in Nigeria.”

He added that Nigerian banks have established a presence in London and that Nigerian companies are listed on the London Stock Exchange.

He further noted that “UK export finance is supporting investment in Nigeria’s ports,” reinforcing the idea of mutual economic interdependence rather than one-sided development assistance.

The inclusion of British Steel in the project ties the agreement to domestic industrial policy. The £70 million contract supports the UK’s steelmaking sector at a time when the government is pursuing measures to stabilize and expand the industry.

The projected £236 million in supplier contracts illustrates how export finance mechanisms can channel public-backed financing into private-sector opportunities.

For Nigeria, the upgrades aim to enhance trade capacity and reduce congestion at key maritime hubs, which are vital for a country of over 200 million people with growing import and export demands.