A landmark £746 million UK–Nigeria infrastructure deal has delivered a record-breaking export order for British Steel, in a major boost for UK manufacturing and international trade ties.
The agreement, backed 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 channelling at least £236 million into British suppliers.
At the centre of the deal is a £70 million contract for British Steel to supply 120,000 tonnes of steel billets, marking the company’s largest-ever export order supported by UKEF and one of the biggest billet orders in its history.
The financing package has been structured through UKEF’s Buyer Credit Facility and arranged by Citi, underlining the UK government’s increasing use of export finance to drive industrial growth and secure overseas contracts for British firms.
Ministers have positioned the deal as an early signal that the government’s newly launched Steel Strategy is beginning to deliver tangible results, with a focus on boosting domestic production while expanding global export opportunities.
Business and Trade Secretary Peter Kyle described the agreement as a “major win for British Steel”, adding that it demonstrates both the strength of UK manufacturing and the deepening 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 heartlands such as Scunthorpe, where British Steel employs around 4,000 people.
The Nigerian government, meanwhile, has framed the investment as a transformative step in modernising its maritime infrastructure and unlocking 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 lower logistics costs, while enabling faster movement of goods across West and Central Africa.
He added that digitalisation and automation would replace legacy, paper-based systems, improving transparency and predictability for businesses operating through Nigerian ports.
The agreement was signed alongside a broader Memorandum of Understanding between the UK and Nigeria, establishing a framework for future trade and investment collaboration. The MoU sets out a pipeline of priority infrastructure projects that could attract further UKEF-backed financing, creating additional opportunities for British exporters.
The deal also reflects a wider 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 for West and Central Africa has increased by more than £3 billion, highlighting a shift towards more active government-backed export promotion.
For British Steel, the contract represents a significant milestone following a period of instability that required government intervention in 2025. Chief executive Allan Bell said the deal marks a transition from stabilisation to long-term sustainability for the business.
“This is a record-breaking contract and a tremendous vote of confidence in British Steel and UK manufacturing,” he said, adding that it demonstrates how public policy and export finance can combine to unlock global demand.
Industry observers note that the structure of the deal, with a substantial proportion of funding tied to UK suppliers, reflects a more interventionist industrial strategy aimed at maximising domestic economic benefit from international agreements.
The redevelopment of Lagos’s port infrastructure is also expected to have wider economic implications, improving trade flows, reducing congestion and strengthening Nigeria’s position as a regional logistics hub.
For the UK, the agreement reinforces its ambition to remain a competitive exporter of industrial goods and services in an increasingly contested global market, while supporting domestic employment and supply chains.
As geopolitical uncertainty reshapes global trade dynamics, deals of this scale are likely to become increasingly important in sustaining growth, particularly for sectors such as steel that have faced prolonged competitive and cost pressures.
The UK–Nigeria partnership, officials say, is intended to serve as a model for future collaboration, combining public finance, private capital and industrial capability to deliver both economic and strategic returns.
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Record-breaking British Steel order secured in £746m UK–Nigeria ports deal