Nigeria’s seaport is on the verge of experiencing a significant transformation, as stated by the presidency in an official announcement.
A.P. Moller-Maersk, a renowned Danish shipping and logistics company, has pledged a substantial investment of $600 million towards enhancing the country’s seaport infrastructure.
This investment aims to enhance the existing infrastructure to support the growth of container shipping services within Nigerian ports.
However, this followed 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 over the weekend.
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In a statement titled ‘President Tinubu meets Chairman of Danish shipping giant Maersk; secures $600 million investment in Nigerian seaport infrastructure’, Mr Ajuri Ngelale, the official spokesperson of the President, disclosed the results of the discussions held.
“We believe in Nigeria, and we will invest $600m in existing facilities and make the ports accommodating for bigger ships,” said Mr Maersk.
The CEO explained that this adds to Maersk’s existing investments of over $2bn in Nigerian ports and other activities.
President Tinubu noted that this investment will complement the administration’s ongoing $1bn investment in seaport reconstruction across the eastern and western seaports of Nigeria.
He 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,” Tinubu said.
The President assured Maersk of his administration’s commitment to collaborating and creating an enabling environment for businesses to thrive in the country.
He 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.
On his part, the 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.
Trade Relationship Between Nigeria And Denmark
The commercial ties between Nigeria and Denmark have been marked by a consistent flow of products and services throughout the years.
In 2021, Nigeria exported goods worth about $231m to Denmark, with crude petroleum making up the bulk of these exports.
On the other hand, Nigeria imported goods worth $269m from Denmark, which consisted of items like margarine, non-fillet frozen fish, and concentrated milk.
Service exports from Denmark to Nigeria in 2020 were valued at $179m, with transportation services being the largest component
Additionally, the two nations have collaborated on projects concerning the sustainable economy to combat climate change, to collectively enhance job opportunities and economic development.
In November 2023, Denmark expressed interest in assisting Nigeria with renewable energy, especially wind power, and has pledged to help improve Nigeria’s power supply through solar and biotechnology.
Maersk’s most recent commitment strengthens the existing collaboration in the maritime industry, with Danish vessels playing a crucial role in transporting Nigeria’s goods.
