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    Monday, April 29, 2024

    Nigeria Secures $600 Million Maersk Investment in Seaport Infrastructure

    President Bola Tinubu secured an investment of $600 million from Danish shipping and logistics company, A.P Moller-Maersk, to expand existing port infrastructure to accommodate more container shipping services in Nigerian ports.

    Chairman of A.P Moller-Maersk, Mr. Robert Maersk Uggla, made the investment public during a meeting with Tinubu at the World Economic Forum Special Meeting on Global Collaboration, Growth and Energy for Development in Riyadh.

    According to Uggla, “We believe in Nigeria, and we will invest $600 million in existing facilities and make the ports accommodating for bigger ships.

    ”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.”

    Highlighting Maersk’s longstanding engagement in Africa’s most populous country and his belief in the future of Nigeria, Uggla said his company had made significant investments running to over $2 billion in Nigerian ports and other activities.

    He emphasised the potential for Nigerian ports to accommodate larger container ships and stressed the need for expanding port infrastructure to meet this demand while reducing the cost of logistics.

    Uggla stated, ”We have seen a significant opportunity for Nigeria to cater for larger container ships. Historically, most of the West African coasts are already 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.”

    Responding, Tinubu noted that the $600 million investment would complement the administration’s ongoing $1 billion investment in seaport reconstruction across the eastern and western seaports of Nigeria.

    Tinubu added that it would further support the country’s port modernisation efforts and port process automation through his administration’s 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.

    He said, “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 assured Maersk of his administration’s commitment to collaborating and creating an enabling environment for businesses to thrive in the country.

    He cited Maersk’s previous partnership in the development of the Ogun State container terminal as a testament to fruitful partnerships with the reputable logistics company.

    Tinubu Tells Samsung CEO Nigeria Remains Best Destination for Money Value

    President Bola Tinubu declared that Nigeria’s investment environment operated on the principle of ‘a willing-buyer and willing-seller’, which ensured seamless access to capital for investors both within and outside the country.

    Tinubu gave the assurance yesterday in Riyadh, Saudi Arabia, during a meeting with President and Chief Executive Officer of Samsung, Hong Namkoong, and Chairman of Samsung Investment Global, Jungwook Kim, on the margins of the World Economic Forum Special Meeting on Global Collaboration, Growth and Energy for Development.

    According to Tinubu, ”Nigeria is a very huge country with a huge and able population. We have vibrant youths ready to learn and progress. In fact, our young do not wait for us. They go ahead of us in their determination to succeed. We must keep up and provide opportunities for them to excel with.

    “We have an infrastructure deficit and you can take advantage of that and invest early and deeply in an environment that is absorptive and ready for it. It is modelled after a willing-buyer and willing-seller arrangement. Easy capital in and easy capital out.”

    The president took time to detail the significant opportunities across sectors for investment within the Renewed Hope Infrastructure Development Fund, which involved the potential utilisation of co-finance instruments on critical infrastructure and technology, which Samsung is well-known to produce.

    Tinubu also emphasised the importance of deepening collaboration in the crude oil, natural gas, renewable energy, engineering, technology and agriculture sectors. He stated that the potential for vast private sector participation in the establishment of fully-embedded, off-grid, cold-chain integration across sub-industries in the agriculture sector to forestall post-harvest losses with mass refrigeration capacity.

    ”We are ready to discuss and discover one another more. We can benefit so much from collaborative effort. You have the know-how, and we have the willingness. Seize this opportunity.”

    The Samsung chairman expressed his company’s interest in expanding its presence in Nigeria, citing the successes of sister companies already operating in the country while laying out potential new opportunities in Nigeria.

    He stated, ”We have built many power stations around the world. We are top of the class in gas-fired power plant construction. We have an ever-increasing portfolio in the production of renewable energy solutions around the world. We can make a lot of progress in Nigeria’s energy sector as well as bringing our technology to other key productive sectors.

    ”Transmission lines and smart grids are areas where we see increasing demand globally. You need infrastructure anywhere you go. We are good at metropolitan rail lines. We are good at bridge construction and any of these types of infrastructure projects, in addition to oil and gas engineering projects.

    “We are looking forward to knowing Nigeria better under your leadership and to see how we can penetrate the Nigerian market deeper. This is a great opportunity for us.”

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