Posted on April 20, 2026
A £746 million ports rehabilitation agreement between Nigeria and the United Kingdom has come under scrutiny, with policy experts warning that the deal, while potentially beneficial to Nigeria’s infrastructure, may tilt more in favour of British strategic and economic interests.
The agreement, signed in March 2026, targets the upgrade of the Lagos Port Complex in Apapa and Tin Can Island Port—two of Nigeria’s busiest maritime gateways, which account for the bulk of the country’s international trade.
But a policy review by Nextier SPD has raised concerns about the underlying motivations and long-term implications of the project. The report, authored by Dr. Chukwuma Okoli and Dr. Ndu Nwokolo, argues that the deal reflects a broader shift in international development assistance, where donor countries increasingly align funding with their national interests.
“Development assistance is no longer purely about altruism,” the analysts noted, warning that such arrangements are now being structured to advance the economic and strategic priorities of donor nations.
According to the report, the United Kingdom has, in recent years, recalibrated its development financing approach to support domestic industries and strengthen its geopolitical positioning, particularly in regions like Africa where competition from other global powers is intensifying.
The study highlighted the growing influence of China on the continent, particularly through its Belt and Road Initiative, as a key factor shaping Western engagement strategies. Nigeria, since aligning with the initiative in 2018, has attracted substantial Chinese investment, including major commitments in the energy and infrastructure sectors.
Against this backdrop, the analysts noted that components of the ports deal appear designed to deliver direct economic benefits to the UK. They pointed out that about £236 million from the project has been earmarked for British suppliers, with British Steel expected to provide 120,000 tonnes of steel billets under a contract valued at approximately £70 million.
The report also linked the UK’s evolving strategy to wider global shifts, including policy changes in the United States, where reduced commitments to international aid have prompted European countries to adopt more commercially driven approaches to foreign partnerships.
Despite these concerns, the analysts acknowledged that the ports rehabilitation project could deliver significant benefits to Nigeria if properly implemented. Improved infrastructure at the ports is expected to enhance cargo handling efficiency, boost government revenue, and stimulate economic activity in sectors such as construction and logistics.
Data from the Tin Can Island Port Command of the Nigeria Customs Service indicates that the facility generated over N1.6 trillion in revenue in 2025, a figure experts say could rise with modernised operations.
The report further noted that indigenous firms, including Hitech Construction Company Nigeria and ITB Nigeria Limited, are expected to participate in the execution of the project, potentially strengthening local capacity in the construction sector.
However, the analysts cautioned that without adequate safeguards, the structure of the deal could expose Nigeria to financial and governance risks. They warned of concerns around debt sustainability, transparency, and the potential for mismanagement—issues that have historically affected the effectiveness of development assistance across Africa.
They also referenced ongoing debates among economists on the role of foreign aid, noting that while some experts view it as a catalyst for development, others argue it can foster dependency and weaken domestic institutions.
To mitigate these risks, the report recommended stronger oversight mechanisms, greater transparency in contract terms, and deeper involvement of Nigeria’s private sector and trade bodies, including the Nigerian Chamber of Commerce, Industry, Mines and Agriculture.
It also called for capacity building within key government agencies such as the Nigerian Ports Authority and the Nigeria Customs Service to ensure effective project implementation.
The analysts stressed the importance of making contract details publicly available and subjecting the agreement to rigorous parliamentary scrutiny to ensure value for money.
“The challenge for Nigeria is not whether to accept development assistance, but how to ensure it aligns with national development priorities,” the report concluded.
