APM Terminals has signed a Memorandum of Understanding for the development of the proposed $2.5bn Badagry Deep-Seaport, as Nigeria’s Minister of Marine and Blue Economy, Adegboyega Oyetola, led a Federal Government delegation to Denmark to strengthen maritime cooperation and attract further investment into the country’s port infrastructure.
The Special Adviser to the Minister, Dr Bolaji Akinola, announced this in a statement on Wednesday. Recall that in a bid to bridge the infrastructure gap through Public-Private Partnerships, the Federal Executive Council, in 2022, approved the concession of the Badagry Deep-Seaport on a Build, Own, Operate and Transfer PPP model.
The $2.5bn port project, which is under the regulatory guidance of the Infrastructure Concession Regulatory Commission, is expected to generate over $53bn within the 45-year concession period.
According to the statement, the MoU, signed in Copenhagen, marks a significant step towards the development of the greenfield port project, which is expected to provide additional deepwater capacity, accommodate larger container vessels and create new transhipment opportunities for Nigeria and the wider West African market.
The statement added that the MoU was signed by the Group Chief Executive Officer of A.P. Moller–Maersk, Vincent Clerc, on behalf of APM Terminals, and Managing Director of Badagry Port Development Limited and Quinn McGrath Marine and Environmental Services Limited, Didi Ndiomu.
“The agreement commits the parties to exclusive negotiations to explore the development of Badagry Port, with APM Terminals expressing its commitment to carrying forward the project.
“The development formed part of broader engagements during Oyetola’s visit to Denmark, where the minister and his delegation held discussions with senior representatives of the Danish government and the wider Danish maritime sector,” the statement read in part.
Speaking on the development, Oyetola said the Federal Government remains committed to strengthening Nigeria’s maritime infrastructure and creating an enabling environment for long-term private-sector investment in the sector.
“Our engagement in Denmark underscores the Federal Government’s commitment to modernising Nigeria’s maritime infrastructure and unlocking the full potential of our blue economy.
“Partnering with global terminal operators like APM Terminals to explore strategic greenfield developments such as the Badagry Port is central to President Bola Ahmed Tinubu’s vision of positioning Nigeria as West Africa’s premier trade and logistics hub,” Oyetola said.
As part of the engagement with APM Terminals, the parties also discussed the extension of the company’s port concessions at the Lagos Port Complex Apapa and the West Africa Container Terminal, Onne.
The proposed Badagry project is expected to complement existing port infrastructure by providing a new deepwater gateway capable of handling larger vessels and supporting increased cargo volumes.
APM Terminals said the development could be transformational for Nigeria’s role in West African trade, particularly by creating significant new opportunities for transhipment.
The Managing Director, Africa & Europe, APM Terminals, part of the A.P. Moller–Maersk Group, Igor van den Essen, said, “APM Terminals is keen to contribute to Nigeria’s economic growth and position as a trade hub in West Africa.