The Nigerian Ports Authority says has secured a $700m loan from Citibank for the rehabilitation of the Apapa and Tincan Island Ports in Lagos.
The loan was funded by the UK Export Finance, an export
credit agency,
Announcing this in a statement on Wednesday, the NPA said it
had also opened discussions with another funding agency to finance the
upgrading of the Eastern Ports including Calabar, Warri, Onne, and Rivers Ports
as well as the reconstruction of Escravos Breakwater.
Speaking in Lagos on Wednesday during the signing of the
mandate letter with Citibank Nigeria, the Managing Director of the NPA,
Mohammed Bello-Koko, said the mandate letter would be sent to the Debt
Management Office for final review and approval.
Bello-Koko said the funds were ready and the reconstruction
of the Lagos Ports would start soonest.
He added that the NPA had perfected plans to sign another
mandate letter for the upgrading of the Eastern Ports in about a month.
“In the last two years, NPA has realised the need to
rehabilitate and reconstruct the ports all over the country. We have been
having discussions with multilateral funding agencies that have sent various
proposals that we have reviewed
“What we did was to further the discussion with interested
parties and we realised it better to separate the ports in Lagos from the ports
in the east, and we are in discussion with another funding agencies to fund the
construction of ports outside Lagos,” Bello-Koko said.
According to him, the Citibank Facility is the cheapest for
the NPA because it comes with affordable interest rates.
“Port efficiency is not about automation which we have
already begun, it’s also about the physical infrastructure, which must be in
place and that’s why we are automating. Automation will naturally bring
efficiency, increase revenue, and plug leakages, “he said.
Bello-Koko said that the NPA was putting the Port Community
System in place, which is a platform that will improve trade facilitation.
“Currently in Nigeria, importers or exporters fill up to 30
to 40 forms for one transaction but the Port Community System would reduce the
numbers of forms, human interference and ensure speedy clearance process in or
out of the country,” the NPA boss added.
Earlier, Managing Director of Citibank Nigeria Limited,
Ireti Samuel-Ogbu, said the bank was committed to supporting NPA and the
Federal Government in bridging the infrastructural gap.
“We are delighted to be partnering with NPA especially being
the collection bank for foreign and local currency port levies.
“Now, supporting this strategic initiative through export
credit financing to upgrade port infrastructure in Tincan and Lagos Ports was
commendable. We are committed to supporting NPA and the Nigerian government in
all its endeavors especially in the infrastructure space,” Samuel-Ogbu.
“Since NPA generates its foreign revenue, we would be able
to support foreign facilities from our resources because this project is very
strategic and an important project for NPA and the country at large
“We are looking forward to this project and we thank NPA for
giving us this opportunity and hope to bring this to fruition as soon as
possible,” she added.
The NPA had in 2023 said it would launch a whopping $1.1bn
ports rehabilitation programme in the first quarter of 2024.
The Managing Director of NPA, Mr. Mohammed Bello-Koko, said
this in Lagos, during a panel session at the 43rd Annual Council Meeting of the
Port Management Association of West and Central Africa.
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