Tinubu associate Chagoury’s firm to handle $700m Lagos Port renovation
The Federal government has awarded a $700 million contract to ITB Nigeria for the refurbishment of Lagos' Tin Can and Apapa ports, a firm owned by Lebanese-Nigerian billionaire Gilbert Chagoury.
Chagoury, who has close ties with President Bola Tinubu, obtained the contract despite ITB Nigeria's previous lack of experience in port infrastructure, as reported by Africa Intelligence. The selection process, which had been the subject of much speculation in Lagos, was concluded in early February during a meeting of the Federal Executive Council. ITB Nigeria, which is a part of the Chagoury Group, is led by Ramzi Chidiac.
This new contract comes on the heels of Chagoury’s contentious Lagos-Calabar coastal highway project, which was awarded to his other firm, Hitech Construction Company Ltd. The 700km highway project, estimated to cost over N15 trillion, has stirred discussions regarding its procurement transparency and environmental consequences. Nonetheless, the Federal Government maintains that the appropriate procedures were followed, highlighting Hitech’s specialization in concrete paving and extensive road construction.
The Nigerian Ports Authority has stated that renovation efforts on the ports are set to begin in the second quarter of 2025, funded by a Citibank loan supported by UK Export Finance. Moreover, Afreximbank and APM Terminals, which is a subsidiary of Danish shipping giant Maersk, have shown interest in co-financing the venture, with APM contributing a $500 million investment in January 2024.
Chagoury is also advocating for the involvement of Dubai-based DP World as a new operator at the Lagos ports. In February, President Tinubu held a meeting with DP World’s CEO, Sultan Ahmed bin Sulayem, with talks still ongoing.
Despite apprehensions regarding high operating expenses and regulatory fees, leading global maritime companies are still eager to establish a presence in Lagos, which continues to be a crucial gateway to Africa’s economy.
Leave A Comment