The Federal Government is betting that the £746 million loan-backed modernisation of the Apapa and Tin Can Island ports in Lagos will generate enough economic value to justify the financing, Finance Minister Taiwo Oyedele said on Wednesday. Defending the United Kingdom-backed financing deal during a presentation on the progress of President Bola Tinubu’s reforms since 2023, Oyedele argued that borrowing to fund infrastructure should not be considered a burden when the resulting asset can generate sufficient returns.
“There’s nothing wrong in finding the person with money to help you solve a problem that you have in a way that that project is self-financing. Imagine you take $1 billion to develop your ports and that port generates a value of more than $1 billion,” he said. The financing agreement, backed by UK Export Finance and arranged by Citibank, was signed in March during Tinubu’s visit to the UK, the first by a Nigerian president in 37 years.
Oyedele described the deal as a “win-win” for both countries, saying its success would ultimately be measured by the physical transformation and improved performance of the two ports.