TGI moves to acquire UAC’s 43% stake in DP World Logistics, expanding its Nigerian logistics operations and regional supply-chain reach.
Global ports and logistics giant, DP World, has announced that it is expanding its footprint in Nigeria’s trade and supply-chain market, with Tropical General Investments (TGI) Group moving to take a 43 per cent stake in its Nigerian logistics business.
The deal is coming days after the company unveiled plans for a $7 billion-plus deep-sea port and special economic zone in Ogun state.
The proposed transaction will see 22 Plus Invest Limited, a subsidiary of TGI, acquire UAC of Nigeria Plc’s entire 43 per cent shareholding in DP World Logistics Limited, formerly MDS Logistics Limited, subject to regulatory approval.
The deal will leave DP World as the majority shareholder in the logistics business, while UAC will exit the company, the firm said in a statement.
The transaction is expected to combine DP World’s international logistics and supply-chain capabilities with TGI’s knowledge of the Nigerian market and extensive distribution network, strengthening the logistics company’s capacity to serve businesses in Nigeria and connect them to regional and international markets.
DP World Logistics will continue to provide road freight and contract logistics services across Nigeria, while expanding into new areas, including fourth-party logistics (4PL) solutions.
The company could also use DP World’s international network to deepen connections between Nigerian businesses and markets across Africa and beyond, while the partnership provides scope for expansion into other West African markets.
The proposed acquisition comes shortly after DP World moved to expand its presence in Nigeria’s maritime infrastructure.
In Paris, the Ogun State Government and DP World MEA FZE signed Memoranda of Understanding (MoU) for the development of the Gateway Deep Sea Port and Ogun State Blue Marine Special Economic Zone.
The proposed projects are expected to strengthen maritime connectivity while integrating port infrastructure with logistics, manufacturing and access to regional markets.
Speaking on the logistics transaction, UAC Group Managing Director, FolaAiyesimoju, said the company had worked closely with DP World’s management to support the growth and expansion of the logistics business.
He described TGI as a strong long-term partner for DP World, citing its deep market knowledge and track record of building businesses in Nigeria.
“We look forward to seeing the Company continue to grow and strengthen its contribution to Nigeria’s logistics sector,” Aiyesimoju said.
TGI Group Vice Chairman, Farouk Gumel, said the proposed acquisition reflected a shared ambition with DP World to reshape trade and logistics in Africa.
“By combining DP World’s global expertise with TGI Group’s deep market knowledge and extensive distribution network, we are building resilient supply chains that will unlock growth, strengthen regional connectivity and support economic prosperity for generations to come,” Gumel said.
DP World Africa Chief Executive Officer and Managing Director, Mohammed Akoojee, described Nigeria as “one of Africa’s most important economies and a critical market for the future of trade on the continent.”
Akoojee said the partnership would strengthen supply chains, improve the movement of goods and create new opportunities for growth in Nigeria and beyond.
TGI has operated in Nigeria and the wider West African region for more than four decades, with interests spanning agriculture, food processing, FMCG manufacturing, distribution, chemicals, poultry farming, real estate and financial services.
The group also has operations in India and the United Arab Emirates and employs more than 25,000 people.
DP World, which operates across six continents, has more than 125,000 employees and interests spanning ports and terminals, marine services, logistics and technology.
The logistics transaction, together with the planned Ogun investments, marks a broader expansion of DP World’s Nigerian operations from port infrastructure into logistics, distribution and integrated supply-chain services.
Meanwhile, the Ogun State Governor, Prince Dapo Abiodun, has described the emerging partnership between global logistics giant, DP World, and TGI Group as a significant development capable of strengthening Nigeria’s trade, logistics and industrial value chains.
Abiodun, who spoke following the signing of agreements involving DP World, the Ogun State Government and TGI Group, said the partnership demonstrated the transformative impact of collaboration between government, indigenous private-sector leaders, global logistics operators and international financiers.
The Ogun State Government and DP World recently signed Memoranda of Understanding in Paris for the development of the Gateway Deep Seaport and the Ogun State Blue Marine Special Economic Zone. The projects are expected to attract more than $7 billion in investment and create over 50,000 direct jobs.
In a parallel development, TGI Group, through its subsidiary, 22 Plus Invest Limited, entered into an agreement to acquire UAC of Nigeria Plc’s 43 per cent stake in DP World Logistics Limited, subject to regulatory approvals.
The governor said the combination of the coastal infrastructure projects in Ogun and TGI’s inland logistics investments would create stronger connections between production centres, transportation networks, ports and international markets.
According to him, the developments would help unlock critical value chains, address longstanding logistics bottlenecks and inefficiencies, and create new opportunities for economic growth and industrial development.
“The DP World partnerships, both along the Ogun State coastline and through TGI’s inland investments, clearly illustrate the transformative impact of collaboration between government, indigenous private-sector leaders, global logistics partners and international financiers,” Abiodun said.
“By strengthening the links between production, transportation and export infrastructure, these partnerships are helping to unlock critical value chains, remove longstanding bottlenecks and inefficiencies, and create new opportunities for economic growth, industrial development, job creation and shared prosperity across Nigeria.”
Abiodun congratulated the Chairman and Board of TGI Group and the Chairman and Board of DP World for the partnership, describing it as a major development in Nigeria’s evolving trade and investment landscape.
He also commended the leadership of the United Arab Emirates, particularly Sheikh Mohammed bin Rashid Al Maktoum, and President Bola Ahmed Tinubu,, for what he described as a significant signal of the deepening relationship between Nigeria and the UAE.
The governor said the significance of the partnership extended beyond individual investments, noting that the integration of maritime infrastructure, special economic zones, manufacturing and inland logistics could provide a more efficient platform for moving goods from production centres to domestic and international markets.
He said Ogun State’s emerging coastal infrastructure, particularly the Gateway Deep Seaport and Blue Marine Special Economic Zone, would complement the State’s established industrial base and strengthen its capacity to serve as a major gateway for trade and exports.
Abiodun added that strategic partnerships of this nature could accelerate economic diversification by connecting infrastructure development with manufacturing, processing, logistics and international trade.
President Bola Tinubu, speaking at the Paris signing ceremony, had underscored the need to address infrastructure constraints that have historically affected Nigeria’s competitiveness, particularly port congestion, inadequate draft capacity and logistics bottlenecks.
The President said the Ogun projects would form an integrated ecosystem for manufacturing, logistics, processing and exports, creating opportunities for investment and industrial growth.
For DP World, the development further strengthens its presence in Nigeria, while the TGI partnership brings together DP World’s global logistics expertise and TGI’s extensive knowledge of the Nigerian and West African markets.
The combined investments are expected to enhance connectivity between Nigeria’s coastal and inland trade infrastructure, strengthen supply chains and support the movement of goods across the country and the wider West African region.
Abiodun expressed optimism that the emerging Nigeria-UAE economic partnership would translate into increased investment, job creation, industrial development and stronger regional trade connectivity.
