By Bello Tukur

Sir: For a coastal country such as Nigeria, seaports are the most important entry point. Seaports are the backbone of international trade responsible for 80 per cent to 90 per cent of all global trade by volume.

Essential goods, machinery, and energy resources enter Nigeria through our ports.  Ports are silent architects of economic growth, often serving as the primary generator of revenue, foreign investment, and employment. They are central to manufacturing logistics, with efficient port infrastructure directly boosting a nation’s GDP and export competitiveness.

Ports hold significant strategic value for national security and defence. They are considered crucial infrastructure for enabling a country to project military power and safeguard national interests.  Seaports provide the most cost-effective means for transporting massive, bulk goods compared to air or land transport.

The UK has agreed to lend Nigeria £746 million for four years to rehabilitate and modernise the Apapa and Tin Can Island ports, which haven’t seen such since the 1970s.  To put it in more perspective, nearly 50 years or two generations have passed without seeing an improvement to these ports.

The population of Nigeria in the 1970s was about 55 million people.  In 2026 it is over 200 million people.  So, our population has quadrupled without any infrastructure improvement to one of the major avenues to our economic growth.

This loan comes at an overdue time.  Container vessels have gotten bigger and we need more space to handle them. A bigger port will make us more competitive, particularly in West Africa, where the Ports of Abidjan and Lome get more business than in Nigeria, due to their larger capacities.

More employment will be created for Nigerians with this port expansion.  We will be able to hire more fitters and engineers, for example.

The Nigerian government promises the new digital systems will slash cargo dwell times and end paper-based delays.  Smart ports exist in more developed countries and Nigeria is too big to be left behind.  Smart ports will help us decongest and be more efficient with smart containers.

Criticism of the loan has come for several reasons including the amount involved, the clause that Nigeria must buy £70 million worth of steel from the UK out of the loan, and that the money is only being used for Lagos ports.

Firstly, loans are only dangerous when the borrower cannot repay: the Apapa and Tin Can Island ports even in their current states, are guaranteed N1 trillion a quarter cash cows, so Nigeria can repay.

Secondly, regarding buying British steel, a borrower has to abide by the terms of their lender.  Thirdly, Apapa and Tin Can Island ports are the dominant hubs for Nigeria’s maritime trade, responsible for over 80 per cent of non-oil imports.

In early 2025, Apapa Port alone facilitated 86.1per cent of Nigeria’s total exports and 71.6 per cent of total trade value, so it can be seen why the loan concentrates on the Lagos ports.

Nigeria shouldn’t only rely on refurbishing the ports without creating a good rail system between the ports and other parts of town and country.  The current situation is putting too much pressure on our roads causing unnecessary traffic, making it difficult to exit from the ports in a timely fashion.  Say there are perishable goods being transported, they won’t damage in transit with an efficient rail system. It is better late than never for Nigeria.

Bello Tukur is the Managing Director of Riverlake West Africa.