DP World is exploring two major port and economic zone projects in Nigeria spanning 10,000 hectares and expected to create 50,000 jobs, as the Dubai-based ports operator seeks to expand its investment in Africa.
The company has signed preliminary agreements covering the Ogun Deep Sea Port and the Ogun State Blue Marine and Special Economic Zone in south-west Nigeria. The projects form part of DP World’s $3 billion investment strategy for Africa, the company said on Thursday.
The agreements were signed in Ogun State in the presence of Nigerian President Bola Tinubu.
The Nigeria projects follow DP World’s announcement in August of a multibillion-dollar investment plan across the UAE, Asia and Africa, as it expands its global logistics network despite disruption from the Iran war.
“Nigeria is a strategically important market for DP World and one where we have operated, invested and grown for more than a decade,” group chief executive Yuvraj Narayan said.
“The [agreements] reflect our long-term commitment to Nigeria and our ambition to support its future trade and connectivity, with infrastructure and logistics capabilities that help Nigerian businesses connect to global markets grow.”
Nigeria is Africa's third-biggest economy, behind Egypt and South Africa, with a projected gross domestic product of $377.37 billion for 2026, representing annual growth of about 4.1 per cent, International Monetary Fund data shows.
Its biggest city, Lagos, is its main traded hub and home to a majority of warehouses taking advantage of access to industrial parks, airports and seaports.
The country's logistics sector, however, faces a number of challenges, attributed to widespread infrastructure deficit, flawed government policy and high operational costs, according to the US International Trade Administration.
Ogun State Governor Dapo Abiodun said the deals “formalise the beginning of two strategic projects that will reshape Nigeria’s economic landscape”.
DP World, meanwhile, has a global handling capacity of 110 million 20-foot-equivalent units and is responsible for the movement of 10 per cent of global daily trade, its website says. It has invested about $10 billion in a logistics network that now spans 85 countries.
The company is aggressively expanding its international footprint and remains confident in the region's prospects. DP World reported a 39 per cent drop in first-half profit despite a 13 per cent rise in revenue, as it managed disruption to global logistics due to the Iran war.
The group has implemented mitigation measures across its regional network, including expanded inland connectivity, to support the continued movement of critical cargo. It has also boosted its logistics capacity and in July acquired 700 lorries to expand its road freight network across the Gulf region.
In August, DP World agreed to absorb the UK grocery distribution assets of US firm GXO Logistics, adding to its investments in Europe.
