A.p. Moller-Maersk to Invest $600 Million to Strengthen Nigeria’s Port

A.P. Moller-Maersk, a Danish shipping and logistics company, recently announced its plans to invest $600 million to strengthen Nigerian ports' port infrastructure and offer more container shipping services.

This development was announced on Sunday after President Bola Tinubu and Mr. Robert Maersk Uggla, the company's chairman, had a close door meeting in Riyadh, Saudi Arabia, on the fringes of the World Economic Forum Special Meeting on Global Collaboration, Growth, and Energy for Development.

The President's official spokesperson, Mr. Ajuri Ngelale, shed more light on the Sunday meeting in a statement titled "President Tinubu meets Chairman of Danish shipping giant Maersk; secures $600 million investment in Nigerian seaport infrastructure."

"We believe in Nigeria, and we will invest $600 million in existing facilities and make the ports accommodating for bigger ships," said Mr Maersk.

On the other hand, Maersk's CEO was reported to have already invested over $2 billion in Nigerian ports and other projects.

President Tinubu stated that this investment will support the administration's ongoing $1 billion in seaport reconstruction in Nigeria's eastern and western seaports. 

He added that 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, and improving the efficiency and transparency of port processes in Nigeria, would further support the country's port modernisation efforts and port process automation.

"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 that his administration was dedicated to working together and fostering an atmosphere that allowed companies to prosper in the nation.

He used Maersk's previous collaboration on constructing the Ogun State container terminal as evidence of the reliable logistics company's successful alliances. 

Mr. Maersk, meanwhile, emphasised the company's longstanding involvement in Africa's most populous country and expressed optimism for Nigeria's future.

He claimed that his business had made large investments totaling more than $2 billion in ports and other ventures in Nigeria.

He stressed the necessity of developing port infrastructure to meet this demand and lower logistics costs. Nigerian ports can handle bigger container ships.

"We have seen a significant opportunity for Nigeria to cater for larger container ships. Historically, smaller ships have already served most of the West African coasts. 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. We are very eager to invest and will continue that dialogue with the relevant Nigerian authorities to explore further investment opportunities," the Maersk Chairman said.

A consistent flow of goods and services characterises Nigeria and Denmark's trade relationship.