APM Terminals has signed a Memorandum of Understanding to explore the development of the proposed $2.5bn Badagry Deep-Seaport in Lagos State.
The agreement was signed in Copenhagen during a visit by the Minister of Marine and Blue Economy, Adegboyega Oyetola, and a Federal Government delegation to Denmark as part of efforts to deepen maritime cooperation and attract investment into Nigeria’s port infrastructure.
The minister’s Special Adviser, Dr Bolaji Akinola, disclosed this in a statement on Wednesday.
The Badagry Deep-Seaport concession was approved by the Federal Executive Council in 2022 under a Build, Own, Operate and Transfer model as part of efforts to close Nigeria’s maritime infrastructure gap through public-private partnerships.
The project, which is under the regulatory oversight of the Infrastructure Concession Regulatory Commission, is projected to generate more than $53bn over its 45-year concession period.
According to the statement, the MoU represents a major step towards developing the greenfield port, which is expected to increase Nigeria’s deepwater capacity, accommodate larger container vessels and create new transshipment opportunities across West Africa.
The agreement commits APM Terminals and the project developers to exclusive negotiations on the proposed development.
The MoU was signed by A.P. Moller–Maersk Group Chief Executive Officer, Vincent Clerc, on behalf of APM Terminals, and the Managing Director of Badagry Port Development Limited and Quinn McGrath Marine and Environmental Services Limited, Didi Ndiomu.
Oyetola said the Federal Government was committed to modernising Nigeria’s maritime infrastructure and creating an enabling environment for long-term private-sector investment.
He said the partnership with global terminal operators such as APM Terminals was consistent with President Bola Tinubu’s vision of positioning Nigeria as West Africa’s leading trade and logistics hub.
During the engagement, APM Terminals and the Nigerian delegation also discussed possible extensions of the company’s concessions at the Lagos Port Complex, Apapa, and the West Africa Container Terminal in Onne.
The proposed Badagry Port is expected to complement existing facilities by providing a deepwater gateway capable of handling larger vessels and increasing cargo volumes.
APM Terminals’ Managing Director for Africa and Europe, Igor van den Essen, said the company’s investment in Apapa and Onne, alongside the proposed Badagry project, could help ease congestion at existing city ports and create new opportunities for regional trade.
He said the company welcomed the Federal Government’s efforts to expand trade, attract investment and strengthen Nigeria’s position as a major maritime gateway in West Africa.
Didi Ndiomu described the proposed investment as the beginning of a new phase in Nigeria’s maritime development, saying the project would support the country’s ambition of becoming a major maritime hub in sub-Saharan Africa.