President Tinubu Secures $600 Million Seaport Investment With Danish Shipping Company Maersk

President Tinubu has secured a $600 million Seaport Investment with Danish Shipping Company Maersk.

Newsone Nigeria reports that President Bola Tinubu, on Sunday, April 28, 2024, secured an investment of $600 million from a Danish shipping and logistics company, A.P. Moller-Maersk.

The Nigerian leader secured the investment during a meeting with the Chairman of A.P Moller-Maersk, Robert Maersk Uggla, during a meeting on the sidelines of the World Economic Forum Special Meeting on Global Collaboration, Growth and Energy for Development in Riyadh, Saudi Arabia.

In his remarks, Uggla disclosed that the Danish firm plans a $600m investment in Nigeria to accommodate more container shipping services in Nigerian ports.

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.

He emphasised the potential for Nigerian ports to accommodate larger container ships and stressed the need for expanding port infrastructure to meet this demand while reducing the cost of logistics.

He said: “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. 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.

“In my humble view, given that Nigeria is the most populous country in Africa, Nigeria should have the best and biggest port and we are very eager to invest. We will continue that dialogue with the relevant Nigerian authorities to explore further investment opportunities.”

In his speech, President Tinubu noted that the investment will complement the administration’s ongoing $1 billion investment in seaport reconstruction across the eastern and western seaports of Nigeria.

According to the President, it would further support the country’s port modernisation efforts and port process automation through his administration’s implementation of the national Single Window project, which is aimed at enhancing trade facilitation, easing import-export flow, and reducing corruption at the ports, while improving the efficiency and transparency of port processes in Nigeria.

He said: “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. 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.”

Newsone reports that President Tinubu further assured Maersk of his administration’s commitment to collaborating and creating an enabling environment for businesses to thrive in the country.

The Nigerian leader 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.