$600m, Maersk To Invest In Nigerian Seaports
Danish shipping and logistics company, A.P Moller-Maersk, has disclosed its plans to invest $600m to expand existing port infrastructure to accommodate more container shipping services in Nigerian ports.
This was made in closed-door talks between President Bola Tinubu and the company’s Chairman, Mr Robert Maersk Uggla, on the sidelines of the World Economic Forum Special Meeting on Global Collaboration, Growth and Energy for Development in Riyadh, Saudi Arabia, on Sunday.
The President’s official spokesperson, Mr Ajuri Ngelale, disclosed the outcome of Sunday’s talks in a statement titled ‘President Tinubu meets Chairman of Danish shipping giant Maersk; secures $600 million investment in Nigerian seaport infrastructure.’
Maersk said, “We believe in Nigeria, and we will invest $600m in existing facilities and make the ports accommodating for bigger ships."
President Tinubu said this investment will complement the administration’s ongoing $1bn investment in seaport reconstruction across the eastern and western seaports of Nigeria.
According to him, “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 minimize trans-shipments from larger ships to smaller ships."
The President expressed commitment to Maersk on collaborating and creating an enabling environment for businesses to thrive in the country.
Similarly, Mr. Maersk expressed the company’s longstanding engagement in Africa’s most populous nation and his belief in the future of Nigeria.
He noted that his company had made significant investments of over $2bn in Nigerian ports and other activities.
According to him, “We have seen a significant opportunity for Nigeria to cater for larger container ships. Historically, most of the West African coasts have already been 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.
“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, and we will continue that dialogue with the relevant Nigerian authorities to explore further investment opportunities."