The Federal government awarded the $700 million contract for the renovation of Lagos’ Tin Can and Apapa ports to ITB Nigeria, a company owned by Lebanese-Nigerian billionaire Gilbert Chagoury.
Chagoury, a close associate of President Bola Tinubu, secured the contract despite ITB Nigeria’s lack of prior experience in port infrastructure, Africa Intelligence reported. The selection process, which had long been speculated on in Lagos, was finalized in early February during a Federal Executive Council meeting. ITB Nigeria, a subsidiary of Chagoury Group, is headed by Ramzi Chidiac.
This latest contract follows Chagoury’s controversial Lagos-Calabar coastal highway project, awarded to Hitech Construction Company Ltd., another of his firms. The 700km highway project, valued at over N15 trillion, has sparked debate over its procurement transparency and environmental impact. However, the Federal Government insists due process was followed, citing Hitech’s expertise in concrete paving and large-scale road construction.
The Nigerian Ports Authority has announced that renovation work on the ports will commence in Q2 2025, financed by a Citibank loan backed by UK Export Finance. Additionally, Afreximbank and APM Terminals, a subsidiary of Danish shipping giant Maersk, have expressed interest in co-funding the project, with APM offering a $500 million investment in January 2024.
Chagoury is also pushing to introduce Dubai-based DP World as a new operator at the Lagos ports. President Tinubu met with DP World’s CEO, Sultan Ahmed bin Sulayem, in February, with discussions ongoing.
Despite concerns over high operational costs and regulatory fees, major global maritime firms continue to seek a foothold in Lagos, which remains a key gateway to Africa’s economy.
