Nigeria secures fresh Maersk’s $600m investment in seaports infrastructure

*President Bola Ahmed disclosed this investment by A.P. Moller-Maersk, Danish shipping and logistics company, will complement his administration’s ongoing $1 billion investment in seaport reconstruction across the Eastern and Western seaports in Nigeria

Gbenga Kayode | ConsumerConnect

President Bola Ahmed Tinubu has secured an investment of $600 million from Danish shipping and logistics company, A.P Moller-Maersk, to expand existing port infrastructure to accommodate more container shipping services in Nigerian ports.

Mr. Robert Maersk Uggla, Chairman of A.P Moller-Maersk, disclosed this to President Tinubu Sunday, April 28, 2024, on the sidelines of the World Economic Forum (WEF) Special Meeting on Global Collaboration, Growth and Energy for Development in Riyadh, Saudi Arabia.

President Tinubu noted that this investment will complement the administration’s ongoing $1 billion investment in seaport reconstruction across the eastern and western seaports of Nigeria.

The Nigerian leader stated the fresh investment would support the country’s port modernisation efforts and port process automation through his administration’s National Single Window project.

ConsumerConnect reports the Federal Government has noted the Single Window project is aimed at enhancing trade facilitation, easing import/export flow, reducing corruption at the ports, while improving the efficiency and transparency of port processes in the West African country.

Tinubu also stated: “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.

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

The President said: “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.”

He equally assured Maersk of his administration’s commitment to collaborating and creating an enabling environment for businesses to thrive in Nigeria.

Ajuri Ngelale, Special Adviser to the President on Media and Publicity, in a statement, quoted President Tinubu to have 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.

Affirming Maersk’s longstanding engagement in Africa’s most populous country, and his belief in the future of Nigeria, Mr. Robert Maersk Uggla, Chairman of A.P Moller-Maersk, revealed that his company had made significant investments of over $2 billion in Nigerian ports and other activities in the country.

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

The Chairman of the shipping giant stated: “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.”

He also noted: “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.”

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

”In my humble view, given that Nigeria is the most populous country in Africa, Nigeria should have the best and biggest port and we are very eager to invest, and we will continue that dialogue with the relevant Nigerian authorities to explore further investment opportunities.”