Danish shipping giant AP Moller-Maersk has agreed to invest $600 million in the Nigerian port expansion and improvement project.
The company’s chairman, Robert Maersk Uggla, approved the investment on Sunday during a meeting with Nigerian President Bola Tinubu during the special meeting of the World Economic Forum in Saudi Arabia, the president’s office said.
Tinubu said the $1 billion investment will help the government rebuild Nigerian seaports.
“We appreciate your company and the contribution you have made and continue to make to our country’s economy. We do not take our partners for granted. A bet on Nigeria is a winning bet,” the President said.
The redevelopment and expansion of several ports will allow for the berthing of larger ships, meaning companies like Maersk will not have to undertake risky transshipments to supply Nigeria.
“More investment opportunities are available and my government has been working on several reforms to encourage investment. We must encourage more opportunities for revenue growth and minimize transshipment from larger vessels to smaller vessels,” Tinubu added.
This is not Maersk’s first investment in Nigeria. It followed the development of a container terminal in Ogun. The new agreement will bring Maersk’s investment in the West African country to $2 billion.
“We have seen a significant opportunity for Nigeria to service larger container ships. Historically, most West African coasts have already been served by smaller ships. We currently see an opportunity to deploy larger ships in Nigeria. To achieve this, we need to expand port infrastructure, especially in Lagos, where we need a bigger hub for logistics services,” Uggla explained.
“In my humble opinion, considering that Nigeria is the most populous country in Africa, Nigeria should have the best and largest port and we are very keen to invest, and we will continue that dialogue with the relevant Nigerian authorities to explore further investment opportunities explore. said the Maersk chairman.
According to United Nations statistics, Nigeria has a population of over 228 million, and it is clear why Maersk thinks the country has potential as it also has one of the youngest populations in the world. The average age is only 17 years.
“Nigeria raises $600 million from Maersk for port development” was originally created and published by Ship Technology, a brand owned by GlobalData.
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