A Danish shipping and logistics company, A.P Moller-Maersk, has pledged a $600 million investment to expand existing port infrastructure to accommodate more container shipping services in Nigerian ports.
President Bola Tinubu secured the deal on the sidelines of the World Economic Forum (WEF) Special Meeting on Global Collaboration, Growth and Energy for Development in Riyadh, Saudi Arabia, on Sunday.
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This disclosure was contained in a statement issued by the Special Adviser to the President on Media and Publicity, Ajuri Ngelale, on Sunday.
Ngelale said in the statement,
- “President Tinubu noted that this investment will complement the administration’s ongoing $1 billion investment in seaport reconstruction across the eastern and western seaports of Nigeria.
- “The President added that it would further support the country’s port modernization 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, reducing corruption at the ports, while improving the efficiency and transparency of port processes in Nigeria.
- “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.”
Enabling environment
The president promised Maersk of his administration’s commitment to collaborating and creating an enabling environment for businesses to thrive in Nigeria.
Ngelale said Tinubu 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.
Firm’sThe firm’s investment in Nigeria
On his part, Chairman of A.P Moller-Maersk, Mr. Robert Maersk Uggla, said his company has made significant investments of over $2 billion in Nigerian ports and other activities.
What 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 we are very eager to invest, and we will continue that dialogue with the relevant Nigerian authorities to explore further investment opportunities,” the Maersk Chairman said.
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