A landmark £746m infrastructure deal between the UK and Nigeria has delivered a record export order to British Steel, in a major boost for UK manufacturing and international trade.
The agreement, supported by UK Export Finance (UKEF), will fund the redevelopment of two of Nigeria’s largest ports in Lagos, the Lagos Port Complex (Apapa Quays) and TinCan Island Port, while injecting at least £236 million into UK suppliers.
At the heart of the agreement is a £70m contract for British Steel to supply 120,000 tonnes of steel billets. This is the company’s largest export order ever supported by UKEF and one of the largest billet orders in its history.
The financing package was structured through the UKEF Buyer Credit Facility and arranged by Citi. This highlights the UK government’s increasing use of export finance to drive industrial growth and secure overseas contracts for UK companies.
Ministers have seen the deal as an early signal that the government’s newly launched steel strategy is starting to deliver tangible results, with a focus on increasing domestic production while expanding global export opportunities.
Business and Trade Minister Peter Kyle described the agreement as a “huge win for British Steel”, adding that it demonstrated both the strength of British manufacturing and the deepening trade relationship between the UK and Nigeria.
The project is expected to support thousands of skilled jobs across the UK supply chain, particularly in industrial centers such as Scunthorpe, where British Steel employs around 4,000 people.
The Nigerian government, meanwhile, has described the investment as a transformative step to modernize its maritime infrastructure and unlock growth within its “blue economy”.
Dr. Adegboyega Oyetola, Nigeria’s Minister of Marine and Blue Economy, said the upgrades would significantly improve port efficiency, reduce bottlenecks and reduce logistics costs, while enabling faster movement of goods across West and Central Africa.
He added that digitalization and automation would replace outdated, paper-based systems and improve transparency and predictability for companies operating through Nigerian ports.
The agreement was signed alongside a broader Memorandum of Understanding between the UK and Nigeria, which provides a framework for future trade and investment cooperation. The MoU sets out a pipeline of priority infrastructure projects that could attract further UKEF-supported funding, creating additional opportunities for UK exporters.
The deal also reflects a broader strategic push by the UK government to strengthen economic ties with high-growth markets, particularly in Africa, where demand for infrastructure investment continues to rise.
Since 2018, UKEF support to West and Central Africa has increased by more than £3 billion, reflecting a shift towards more active government-backed export promotion.
For British Steel, the contract represents a significant milestone after a period of instability that required government intervention in 2025. Chief executive Allan Bell said the deal represented a transition from stabilization to long-term sustainability for the company.
“This is a record-breaking contract and a huge vote of confidence for British Steel and British manufacturing,” he said, adding that it shows how public policy and export finance can be combined to boost global demand.
Industry observers note that the deal’s structure, with a significant proportion of funding tied to UK suppliers, reflects a more interventionist industrial strategy aimed at maximizing domestic economic benefits from international agreements.
The rehabilitation of Lagos port infrastructure is also expected to have broader economic impacts by improving trade flows, reducing congestion and strengthening Nigeria’s position as a regional logistics hub.
For the UK, the agreement strengthens its ambitions to remain a competitive exporter of manufactured goods and services in an increasingly competitive global market, while supporting domestic employment and supply chains.
As geopolitical uncertainty changes global trade dynamics, deals of this size are likely to become increasingly important to sustaining growth, particularly for sectors such as steel that have faced ongoing competitive and cost pressures.
The UK-Nigeria partnership will serve as a model for future collaboration, combining public finance, private capital and industrial capacity to deliver both economic and strategic returns, officials said.
