Global ports and logistics giant, DP World, is expanding its presence in Nigeria's trade and supply-chain market through a partnership with Tropical General Investments (TGI) Group. As part of the deal, TGI subsidiary, 22 Plus Invest Limited, will acquire a 43% stake in DP World Logistics Limited, formerly MDS Logistics Limited. This development comes days after DP World unveiled plans for a $7 billion-plus deep-sea port and special economic zone in Ogun state.
The proposed transaction, subject to regulatory approval, will see DP World remain the majority shareholder in the logistics business, while UAC of Nigeria Plc exits the company. The partnership aims to combine DP World’s international logistics and supply-chain capabilities with TGI’s knowledge of the Nigerian market and extensive distribution network. This collaboration is expected to strengthen the logistics company’s capacity to serve businesses in Nigeria and connect them to regional and international markets.
The deal is expected to enhance DP World Logistics' service offerings, including road freight and contract logistics services across Nigeria. The company also plans to expand into new areas, including fourth-party logistics (4PL) solutions. With DP World's international network, Nigerian businesses can deepen connections with markets across Africa and beyond. The partnership provides scope for expansion into other West African markets, further solidifying Nigeria's position as a regional trade hub.
UAC Group Managing Director, Fola Aiyesimoju, welcomed the partnership, citing TGI as a strong long-term partner for DP World. Aiyesimoju noted that TGI's deep market knowledge and track record of building businesses in Nigeria make it an ideal partner. He expressed confidence in the company's growth and its contribution to Nigeria's logistics sector.
TGI Group Vice Chairman, Farouk Gumel, emphasized the shared ambition with DP World to reshape trade and logistics in Africa. Gumel highlighted the benefits of combining DP World’s global expertise with TGI Group’s extensive distribution network. This partnership aims to build resilient supply chains that will unlock growth, strengthen regional connectivity, and support economic prosperity.
Ogun State Governor, Abiodun, hailed the partnership, saying it signals deepening Nigeria-UAE economic ties. The governor's statement underscores the significance of this deal in strengthening economic relations between Nigeria and the United Arab Emirates. DP World Africa Chief Executive Officer and Managing Director, Mohammed Akoojee, described Nigeria as “one of Africa's most critical markets”.
The partnership between DP World and TGI Group is a strategic move to boost Nigeria's logistics sector. With the acquisition, DP World Logistics will continue to provide essential services while exploring new opportunities. Key aspects of the deal include DP World's expanded presence in Nigeria's logistics market and the potential for growth in West African markets. The development of the Gateway Deep Sea Port and Ogun State Blue Marine Special Economic Zone further solidifies DP World's commitment to Nigeria's maritime infrastructure.
Key points
- DP World partners with TGI Group to acquire 43% stake in its Nigerian logistics business.
- The deal aims to strengthen Nigeria's logistics sector and expand into new areas, including fourth-party logistics solutions.
- The partnership signals deepening economic ties between Nigeria and the United Arab Emirates.
