Nigeria and the United Kingdom have signed a £746 million export finance deal to support the redevelopment of two major ports in Lagos.
Prime Minister Keir Starmer and President Bola Tinubu met on Thursday in Downing Street in London, where the agreement was made public.
As part of the agreement, financing for the renovation of the port complexes on Apapa and Tin Can Island will be guaranteed by UK Export Finance (UKEF).
Under the deal, UK Export Finance (UKEF) will guarantee loans for the refurbishment of the Apapa and Tin Can Island port complexes.
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The financing arrangement will, reportedly, be coordinated by Citibank.
As part of the deal, British Steel will supply 120,000 tonnes of steel for the port projects under a contract valued at £70 million.
The deal is anticipated to generate £236 million in supplier contracts for British companies, as at least 20 percent of the project components must be sourced from the UK.
According to the UK government, British Steel’s steel contract, which is supported by UKEF, is the biggest export.
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Starmer described the deal, which was reached during Tinubu’s official visit to the UK, the first by a West African leader in 37 years.
The prime minister declared the visit to be a “historic” occasion in bilateral relations in a statement following the meeting.
The reconstruction of the two ports will improve the nation’s standing in regional trade, according to the ministry of marine and blue economy, which commented on the agreement.
Additionally, the project will “strengthen Nigeria’s position as a leading maritime hub in west and central Africa,” according to Adegboyega Oyetola, minister of marine and blue economy.
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Recall that Tinubu began his two-day state visit to the UK on Wednesday.
Plans to sign a memorandum of understanding (MoU) to strengthen commercial and investment relations between the two nations are also part of the visit.
The Nigeria Sovereign Investment Authority (NSIA) signed an MoU with the UK’s Asset Green Limited to develop an integrated dairy production platform in the West African nation.
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