The federal government has awarded the contract to renovate Lagos’ Tin Can and Apapa ports, the main commercial entry points into its economy, to ITB Nigeria, a construction company owned by Gilbert Chagoury, a Lebanese-Nigerian businessman with close ties to President Bola Tinubu.
According to Africa Intelligence, the decision was made at a Federal Executive Council (FEC) meeting in early February, where the government selected Chagoury Group and its subsidiary, ITB Nigeria, despite the company’s lack of experience in port development. The report noted that Tinubu had the final say on the contract.
This follows an earlier award to another Chagoury-owned company, Hitech Construction, for the Lagos-Calabar coastal highway, a major infrastructure project spanning eight states. That contract, valued at over N15 trillion, faced scrutiny, though the government defended its choice, citing Hitech’s expertise in concrete paving.
The Lagos port renovation project is expected to begin in the second quarter of 2025. It will be financed through a loan from Nigeria’s Citibank, backed by UK Export Finance. Afreximbank has also offered financial support, while APM Terminals, the operator of Apapa port and a subsidiary of Maersk, has proposed a $500 million investment. The Nigerian Ports Authority (NPA), led by Abubakar Dantsoho, is reviewing the offer.
Chagoury is also involved in efforts to introduce Dubai-based DP World as a new port operator in Lagos. On February 26, Tinubu met with Sultan Ahmed bin Sulayem, the world chairman of DP, along with Chagoury and Adegboyega Oyetola. minister of marine and blue economy, to discuss potential investments.
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DP World has been exploring opportunities in Nigeria, with Vice President Kashim Shettima previously engaging with the firm’s leadership during the 2023 UN General Assembly.
The report noted that existing operators, including APM Terminals, are monitoring developments. APM Terminals’ concession for Apapa port runs until 2031, while some concessions at Tin Can port are already available. Meanwhile, CMA Terminals, a subsidiary of France’s CMA CGM, controls Lekki port and holds an agreement preventing the establishment of any new container port in Lagos before December 2028.
Lagos ports, despite being among the most expensive in the world, remain a key entry point for companies investing in Africa. Regulatory fees and customs charges are high, yet global shipping firms continue to maintain operations. In 2006, APM Terminals paid nearly $1 billion for a 25-year concession at Apapa port.
Chagoury has enjoyed a frontman role in Lagos’ infrastructure projects, including road construction in Victoria Island and Ikoyi, as well as the Eko Atlantic project. His companies are also leading the first phase of the Lagos-Calabar coastal road.
The business ties between Chagoury and the Tinubu administration extend beyond these contracts, Africa Intelligence says.
“The links between the Chagoury family and the Tinubu clan are numerous. The president’s son, Oluwaseyi Tinubu, known as Seyi Tinubu, is on the board of CDK Integrated Industries, another subsidiary of the Chagoury group.
“President Tinubu has since taking office in 2023 awarded numerous contracts to the Lebanese-Nigerian businessman, who backed him during his election campaign and is expected to play a major role in his bid for re-election in 2027.”
