Nigeria: TGI Group to Take 43% of DP World Logistics After Port Plan
Nigeria · TRADE
Key Facts
- —The country Nigeria is Africa’s most populous country, with about 238 million people. Its economy, about US$291 billion in 2025, is roughly the size of Finland’s.
- —Why it matters Nigeria’s sea trade is concentrated on congested ports in Lagos, its commercial capital. Officials say delays there raise costs for importers, exporters and manufacturers.
- —Why now On 23 September, Ogun State, which borders Lagos, signed initial agreements with Dubai’s DP World for a deep-sea port. A day later, UAC announced its stake sale.
- —What happened UAC of Nigeria said on 24 September it will sell its 43% of DP World’s Nigerian logistics arm to TGI Group. No price was given.
- —The numbers The planned port has a four-kilometre berth and an 18-metre draft. Officials put initial investment above US$7 billion, with over 50,000 direct jobs.
- —What it means for you Firms shipping goods into Nigeria may gain a stronger road-freight provider tied to a global port operator. Nothing changes until regulators approve the sale.
- —Still open Which regulators must approve the sale, and when. Whether the port memoranda become binding, financed contracts; Ogun’s governor wants construction to start in November.
A Nigerian conglomerate is buying into DP World Logistics, the local trucking and warehousing arm of Dubai’s DP World. The deal was announced a day after DP World signed initial agreements for a Nigerian port worth more than US$7 billion.
Nigeria, Africa’s most populous country, is courting foreign port operators to ease congestion around Lagos. The latest move is a change of Nigerian shareholder at DP World Logistics, owned mostly by the Dubai-based ports group.
UAC of Nigeria, a listed food and paints group, is selling its 43% stake to TGI Group, a rival conglomerate. The sale follows DP World’s plan for a deep-sea port in Ogun State, next to Lagos.
TGI replaces UAC as DP World’s Nigerian partner
UAC of Nigeria Plc, a conglomerate listed on the Nigerian Exchange, disclosed the sale in a filing dated Thursday 24 September. It will sell its entire 43% of DP World Logistics Limited to 22 Plus Invest Limited.
The buyer belongs to Tropical General Investments (TGI) Group, another Nigerian conglomerate. The deal needs regulatory approvals, and neither side disclosed the price.
The company was called MDS Logistics until it took the DP World name. DP World will remain the majority shareholder once UAC exits, the companies said in a statement.
The business runs road freight and contract logistics, meaning warehousing and distribution on behalf of clients. It plans to add fourth-party logistics, where one provider manages a client’s whole supply chain.
Who the buyer and seller are
TGI has operated in Nigeria and West Africa for more than four decades, according to BusinessDay, a Lagos business daily. Its businesses span agriculture, food processing, consumer goods, chemicals, poultry, real estate and finance.
The group says it employs more than 25,000 people and has expanded into India and the United Arab Emirates. The stake adds a logistics business to its existing distribution network.
UAC keeps its packaged food, paints, animal feed, restaurant and real estate businesses. The sale comes about a year after it completed the takeover of C.H.I. Limited, a Nigerian juice and dairy maker.
Fola Aiyesimoju, UAC’s group managing director, said TGI would be a strong long-term partner for the business. “We look forward to seeing the Company continue to grow and strengthen its contribution to Nigeria’s logistics sector,” he said.
Farouk Gumel, TGI’s vice chairman, said the deal reflects a shared ambition to reshape trade and logistics in Africa. He pointed to TGI’s market knowledge and distribution network.
The US$7 billion port behind the timing
The stake sale was announced a day after a much bigger DP World move in Nigeria. On Wednesday 23 September in Paris, Ogun State and DP World MEA FZE signed memoranda of understanding.
DP World MEA FZE is the company’s Middle East and Africa unit. President Bola Tinubu witnessed the signing, according to Punch, a Lagos newspaper.
The agreements cover the Gateway Deep Sea Port at Ogun Waterside and a 10,000-hectare special economic zone beside it. The zone is meant to attract manufacturers and exporters that need direct port access.
The port is designed with a four-kilometre berth and an 18-metre draft, the water depth available to ships. Officials say that would let it take larger vessels and ease pressure on the Lagos port corridor.
Tinubu said the projects represent an initial investment of more than US$7 billion. He said they are projected to create more than 50,000 direct jobs.
A memorandum of understanding is a statement of intent, not a binding contract. The US$7 billion is a projection by officials, not committed financing.
It would be DP World’s first port in Nigeria, according to the trade publication Container Management. The Dubai company already runs ports elsewhere in Africa, including Dakar in Senegal and Berbera in Somaliland.
What happens next
Dapo Abiodun, Ogun’s governor, told party supporters that groundbreaking would take place in November. He said the port would be almost complete within two and a half years, Tribune Online reported.
Abiodun acknowledged the port had been planned for more than 30 years without being built. Turning the memoranda into signed contracts and financing is the next test.
For the logistics deal, the immediate step is regulatory approval. UAC has not said which regulators must sign off or when it expects the sale to close.
What it means for business
For foreign companies selling into Nigeria, getting goods from the port to customers is a major cost. TGI’s distribution network could help the business widen its reach inland.
The companies said the business could also expand into other West African markets. Ogun’s governor presented the two deals as a sign of deepening ties between Nigeria and the United Arab Emirates.
Nigeria hopes better ports and logistics will help it gain from the African Continental Free Trade Area. The pact aims to create a single market of about 1.4 billion people.
Ports in Ghana, Togo and Côte d’Ivoire compete for the same regional cargo. Lomé in Togo is already a major transshipment hub for West Africa.
Frequently Asked Questions
What does the logistics company do?
It is the Nigerian road freight and contract logistics arm of Dubai-based DP World, formerly called MDS Logistics. DP World holds the majority, and UAC of Nigeria owned 43%.
Who is buying the stake?
22 Plus Invest Limited, part of Nigeria’s Tropical General Investments (TGI) Group, is buying UAC’s entire 43% stake. The deal needs regulatory approval, and no price was disclosed.
How big is the planned Ogun port?
Officials say the Gateway Deep Sea Port and its economic zone involve more than US$7 billion in initial investment. The port is designed with a four-kilometre berth and an 18-metre draft.
When will construction start?
Ogun’s governor, Dapo Abiodun, said groundbreaking is planned for November 2026. The agreements signed so far are memoranda of understanding, not binding contracts.
Connected Coverage
Sources
- nairametrics.com
- businessday.ng
- thisdaylive.com
- punchng.com
- tribuneonlineng.com
- container-mag.com
- data.worldbank.org
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error
LatAm Markets: Live Signals → — real-time movers, turnover leaders and FX across Latin America.
Read More from The Rio Times