Danish terminal operator renews $500m investment pledge in Nigerian ports amid continued expansion push

Global port operator APM Terminals, a major player in Nigeria’s maritime sector, has renewed its commitment to invest $500 million into the country’s ports, marking its third reiteration in a year. The pledge, first disclosed in February 2024, was reiterated during a company visit to the Ministry of Marine and Blue Economy this week.

The planned investment, aimed at upgrading operations at Apapa Port and other locations, is seen as a critical part of APM’s long-term strategy to strengthen its position in West Africa’s growing maritime trade. The funds will be used to improve cargo handling, increase port efficiency, and attract larger vessels to Nigerian shores.

This latest announcement follows similar plans made in February and May 2024, which outlined APM’s ambitions to make Apapa one of Africa’s busiest ports. However, it has yet to be fully realised.

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Keith Svendsen, global CEO of APM Terminals, disclosed the company’s ongoing talks with the Bola Tinubu administration to ensure the plans come to fruition.

The pledge, if realised, could boost Nigeria’s foreign direct investment (FDI) at a time when capital inflows have been strained by currency volatility, high inflation and production costs.

Minister Adegboyega Oyetola welcomed the renewed commitment, noting that it aligns with Nigeria’s broader vision to modernise its port infrastructure. However, he asked that the eastern ports be included in the modernisation effort, not just the west.

“This investment must align with our broader agenda to modernise all Nigerian ports and enhance competitiveness,” Oyetola said. “We are confident that with these modernisation efforts, Nigerian ports will soon rank among the best in the world.”

The pledge is timely, especially as the Nigerian government works to deepen draft levels at Lagos ports to at least 16 meters, which will accommodate larger vessels, reduce turnaround time, and slash shipping costs.

Oyetola also mentioned that the government is actively working with the Nigeria Customs Service (NCS) to push for full port automation and the deployment of modern scanning technology to reduce the reliance on physical cargo examinations.

APM Terminals has operated in Nigeria for over 20 years and remains a key player in the country’s maritime industry. Since its entry, the company said it has invested more than $600 million in equipment, including trucks, container cranes, and advanced digital tools.

Peter Wikstrom, the company’s chief financial officer, said Nigeria remains a prime market for the company’s long-term growth.

“This is my first visit to Nigeria, and I’m impressed by the scale of opportunity here,” he said, describing Nigeria as a profitable investment destination for APM Terminals.

Frederik Klinke, its CEO further disclosed that APM Terminals is working closely with the Nigeria Customs Service to invest an additional $10 million in the acquisition and deployment of modern cargo scanners at Apapa port as part of plans to become the first terminal operator in Nigeria to achieve full deployment of scanning technology.