Nigeria Secures $600m Investment From Maersk In Seaport Infrastructure

Nigeria has secured a significant investment of $600 million from A.P Moller-Maersk, a well-known Danish shipping and logistics firm.

Gatekeepers News reports that the investment was announced by Robert Uggla, the Chairman of A.P Moller-Maersk, during a meeting with the Nigerian president, Bola Tinubu, on the sidelines of the World Economic Forum in Saudi Arabia.

This investment has been made to expand the existing port infrastructure in Nigeria to accommodate more container shipping services.

The President has stated that this investment will complement the ongoing $1 billion investment made by his administration in the reconstruction of seaports in the eastern and western regions of Nigeria.

Also, the funds will be utilized to support Nigeria’s port modernisation efforts and port process automation through the implementation of the national single window project.

“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,” he told Uggla.

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

“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.”

Tinubu assured Uggla of his administration’s commitment to collaborating and creating an enabling environment for businesses to thrive in the country —

He 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.

Highlighting Maersk’s longstanding engagement in Africa’s most populous nation and his belief in the future of Nigeria, Uggla said his company had made significant investments of over $2 billion in Nigerian ports and other activities.

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

“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,” Uggla said.

“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.

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

Uggla further said given that Nigeria is the most populous country in Africa, the country should have the best and biggest port and we are very eager to invest.

He said the firm would continue to dialogue with the relevant Nigerian authorities to explore further investment opportunities.