The federal government has defended its £746 million ports upgrade agreement with the United Kingdom, saying the deal is balanced and designed to deliver major economic benefits to Nigeria despite concerns that foreign partners may gain more.
The agreement, valued at about $997 million, focuses on modernising two of Nigeria’s busiest ports, Apapa and Tin Can Island, in a move expected to improve trade, reduce delays and create jobs across the country.
Responding to criticisms on Tuesday, the Ministry of Finance said the partnership is not one-sided, stressing that both Nigeria and its international partners stand to benefit in different but complementary ways.
“This is not a zero-sum arrangement. Global partnerships deliver different but complementary benefits,” the ministry said.
According to the ministry, Nigeria will gain modern and efficient port infrastructure that will improve productivity and reduce congestion. It added that businesses will benefit from lower logistics costs, while thousands of jobs are expected to be created in construction, logistics and related industries.
The ministry also said the project would strengthen Nigeria’s trade position, opening up more opportunities for local businesses under the African Continental Free Trade Area and in global markets.
It explained that the deal would also make the country more attractive to investors by serving as a catalyst for further investments.
On the gains for the foreign partners, the ministry said they would participate in financing and project delivery while also accessing industrial and commercial opportunities.
Summing up the expected outcome, the ministry said, “Nigeria secures critical infrastructure upgrades without delay, enabling faster economic transformation.”
The government maintained that the deal directly addresses the biggest challenge facing Nigeria’s trade system, which is inefficiency at the ports. It noted that the two ports involved in the upgrade currently handle about 70 per cent of the country’s trade, making the intervention critical.
It added that the reform would also complement ongoing digital improvements and unlock value across trade, industry, logistics and employment.
“Most importantly, it reduces the hidden ‘congestion tax’ borne by Nigerian businesses,” the ministry said.
A major target of the reform is to significantly cut the time it takes to clear goods at Nigerian ports. At present, cargo dwell time ranges between 18 and 21 days, far above the global average of about four days.
The ministry said the government plans to reduce this to less than seven days by 2026.
According to the ministry, “Nigeria’s reform programme is designed to reduce cargo dwell time from 18–21 days to under 7 days by 2026, align Nigeria closer to global benchmarks, and deliver faster clearance times, lower logistics costs, and improved reliability for businesses.”
It described the planned changes as a major shift that would transform the country’s trade system rather than just produce minor improvements.
The port upgrade is part of a broader reform programme that includes the rollout of the National Single Window, a digital platform aimed at simplifying trade processes.
The initiative is being implemented under the administration of President Bola Ahmed Tinubu as part of efforts to improve the business environment, attract investment and support economic growth.
Ministry Officials said the National Single Window will tackle delays caused by documentation and regulatory processes, which currently account for about 73 per cent of cargo delays at Nigerian ports.
Through the platform, traders will be able to submit documents electronically, process permits, and make payments in a more transparent and efficient manner.
At the same time, the physical upgrade of Apapa and Tin Can ports will address congestion, outdated infrastructure and slow cargo handling.
The ministry explained that both reforms must work together to achieve results.
“Without the National Single Window, ports remain congested due to slow documentation. Without port upgrades, digital efficiency is undermined by physical bottlenecks. Together, they deliver end-to-end efficiency across Nigeria’s trade value chain,” it said.
The government believes the combined impact of these reforms will be far-reaching. Importers and manufacturers are expected to benefit from faster access to raw materials and lower costs, while exporters will gain improved access to international markets.
For the wider economy, the reforms are expected to lower the cost of goods, increase trade volumes and boost government revenue through better compliance and efficiency.
