An investment worth $600 million has been secured by President Bola Tinubu from A.P. Moller-Maersk, a Danish shipping and logistics company. This investment aims to enhance the existing port infrastructure to support more container shipping services in Nigerian ports.
During a meeting at the World Economic Forum Special Meeting on Global Collaboration, Growth, and Energy for Development in Riyadh, Saudi Arabia, Chairman of A.P. Moller-Maersk, Mr. Robert Maersk Uggla, revealed the decision to President Tinubu.
President Tinubu highlighted that this investment will supplement the administration’s ongoing $1 billion effort in seaport reconstruction across eastern and western ports in Nigeria.
The President emphasized that this move will aid in the country’s port modernisation agenda and support port process automation through the implementation of the national Single Window project. This project is aimed at improving trade facilitation, streamlining import-export processes, combating corruption at ports, and enhancing the efficiency and transparency of port operations in Nigeria.
“We value your partnership and the significant economic contribution you have had and continue to have in our country. We recognize the potential in Nigeria and have implemented various reforms to attract investments. Our goal is to expand revenue opportunities and reduce the need for trans-shipments from larger vessels to smaller ones,” he stated.
President Tinubu reiterated his administration’s dedication to fostering a conducive business environment to encourage the growth of enterprises in the nation. He pointed out Maersk’s successful collaboration in the development of the Ogun State container terminal as evidence of fruitful partnerships.
Robert Maersk Uggla, the chairman of A.P. Moller-Maersk, expressed confidence in Nigeria’s future and highlighted the company’s previous investments exceeding $2 billion in Nigerian ports and related initiatives.
He underscored the potential for Nigerian ports to handle larger container vessels and the necessity to expand port infrastructure to meet this demand and cut down logistics costs.
“We believe Nigeria has the capacity to accommodate larger container ships. While smaller vessels have historically served the West African coasts, there is now an opportunity to utilize bigger ships in Nigeria. This requires the expansion of port infrastructure, particularly in Lagos, to establish a larger logistics hub. The growth prospects are substantial,” Uggla stated.
“Nigeria, as the most populous country in Africa, should ideally have the most advanced and largest port. We are keen on investing in this vision and will engage with Nigerian authorities to explore further investment prospects,” he added.