Danish shipping and logistics company, A.P Moller-Maersk, has said that it would invest additional $600 million to expand existing port infrastructure to accommodate more container shipping services in Nigerian ports.
This followed closed-door talks between President Bola Tinubu and the company’s Chairman, Mr Robert Maersk Uggla on the sideline of the World Economic Forum Special Meeting on Global Collaboration, Growth and Energy for Development in Riyadh, Saudi Arabia, on Sunday.
The Maersk CEO said the fresh investment is in addition to existing investments of over $2 billion in Nigerian ports and other activities.
Tinubu’s spokesperson, Ajuri Ngelale, in a statement issued on Monday, quoted President Tinubu as saying that the investment will complement the administration’s ongoing $1 billion investment in seaport reconstruction across Nigeria’s eastern and western ports.
He added that it would further support the country’s port modernisation efforts and port process automation through 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 minimise trans-shipments from larger ships to smaller ships,” Tinubu said.
The President assured Maersk of his commitment to collaborating and creating an enabling environment for businesses to thrive in the country.
Speaking, the Maersk Chairman highlighted the company’s longstanding engagement in Africa’s most populous nation and his belief in the future of Nigeria.
He emphasised the potential for Nigerian ports to accommodate larger containerships and stressed the need for expanding port infrastructure to meet this demand while reducing the cost of logistics.
“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,” Uggla said.
The trade relationship between Nigeria and Denmark has been characterised by a steady exchange of goods and services over the years. In 2021, Nigeria exported goods worth about $231 million to Denmark, with crude petroleum making up the bulk of these exports. Conversely, Denmark exported goods valued at $269 million to Nigeria, including products such as margarine, non-fillet frozen fish, and concentrated milk.
Service exports from Denmark to Nigeria in 2020 were valued at $179 million, with transportation services being the largest component.
Additionally, both countries have partnered on initiatives related to the green economy to address climate change and are expected to mutually boost employment and economic growth.
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.
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