A landmark £746 million UK-Nigeria infrastructure deal has delivered a record-breaking export order for British Steel, in a major boost to UK manufacturing and international trade relations.
This agreement, supported by UK Export Finance (UKEF), will finance the reconstruction of Nigeria’s two largest ports in Lagos, the Lagos Port Complex (Apapa Quays) and TinCan Island Port, while delivering at least £236 million to British suppliers.
At the heart of the deal is a £70 million contract for British Steel to supply 120,000 tonnes of steel ore, marking the company’s largest export order ever supported by UKEF and one of the largest orders in its history.
The financing package is made up of UKEF’s Buyer Credit Facility and arranged by Citi, underscoring the UK government’s increased use of export capital to boost industrial growth and secure overseas contracts for British firms.
Ministers hailed the deal as an early sign that the government’s recently launched Steel Strategy is starting to deliver tangible results, focusing on increasing domestic production while expanding export opportunities around the world.
Business and Trade Secretary Peter Kyle described the deal as a “huge victory for British Steel”, adding that it demonstrates the UK’s manufacturing capabilities and the deep commercial relationship between the UK and Nigeria.
The project is expected to support thousands of skilled jobs across the UK supply chain, particularly in industrial areas such as Scunthorpe, where British Steel employs around 4,000 people.
The Nigerian government, on the other hand, has positioned the investment as a turning point in modernizing its maritime infrastructure and unlocking growth within its “economy”.
Dr. Adegboyega Oyetola, Nigeria’s Minister of Maritime Affairs and Green Economy, said the development will greatly improve the port’s efficiency, reduce bottlenecks and lower transportation costs, while allowing for faster movement of goods across West and Central Africa.
He added that digitalization and automation will replace legacy, paper-based systems, improve visibility and predictability of businesses operating at Nigerian ports.
This agreement was signed alongside a wider Cooperation Agreement between the UK and Nigeria, establishing a framework for future trade and investment cooperation. The MoU sets the stage for major infrastructure projects that could attract further UKEF-backed funding, creating more opportunities for British exporters.
The agreement also reflects the UK government’s wider strategic push to strengthen economic ties with emerging markets, particularly in Africa, where the need for investment in infrastructure continues to grow.
Since 2018, UKEF’s support to West and Central Africa has increased to over $3 billion, highlighting the shift towards effective government-based export promotion.
For British Steel, the contract represents a milestone following a period of instability that required government intervention in 2025. Chief executive Allan Bell said the deal marks a transition from sustainability to long-term sustainability for the business.
“This is a historic contract and a huge vote of confidence in British Steel and UK manufacturing,” he added, adding that it shows how public policy and export finance can come together to unlock global demand.
Industry observers note that the structure of the deal, with a large portion of the money tied up in UK suppliers, reflects an industry strategy of intervention aimed at increasing domestic economic profits through international deals.
The redevelopment of Lagos port infrastructure is expected to have wide-ranging economic impacts, improve commercial flows, reduce congestion and strengthen Nigeria’s position as a regional transport hub.
For the UK, this deal reinforces its ambition to remain a competitive supplier of industrial goods and services in an increasingly competitive global market, while supporting local employment and the supply chain.
As political uncertainty reshapes global trade dynamics, deals of this scale will likely be critical to sustaining growth, especially in sectors such as steel that have faced long-term competitive and cost pressures.
The UK-Nigeria partnership, officials say, is intended to serve as a model for future cooperation, bringing together public finance, private capital and industrial capacity to deliver economic and strategic benefits.
