The Nigerian Ports Authority (NPA) has successfully secured a loan of $700 million from Citibank, backed by the United Kingdom Export Finance (UKEF), to facilitate the rehabilitation of the Apapa and Tin-Can Island ports in Lagos.
During a signing ceremony held in Lagos on Wednesday, the Managing Director of the NPA, Mohammed Bello-Koko, announced the milestone, stating that the funds would be utilized to enhance the infrastructure and operational efficiency of the ports.
Bello-Koko further revealed that discussions are underway with another funding agency to finance the upgrading of the Eastern Ports, including Calabar, Warri, Onne, Rivers Ports, and the reconstruction of the Escravos breakwater facility.
The mandate letter signed with Citibank Nigeria will be submitted to the Debt Management Office (DMO) for final review and approval. Bello-Koko expressed confidence that the rehabilitation of the Lagos Ports would commence expeditiously, with plans underway to sign another mandate letter for the Eastern Ports’ upgrade within a month.
He said the funds are ready and the reconstruction of the Lagos Ports will start soonest even as the NPA perfects plans to sign another mandate letter for the upgrading of the Eastern Ports in about a month.
He stated: “In the last two years, NPA has realised the need for us 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 is to further discussion with interested parties and we realised is better is 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.”According to him, the Citibank facility is the cheapest for the Ports Authority because it comes with affordable interest rates.
Explaining the rationale behind the initiative, Bello-Koko emphasized the NPA’s recognition of the urgent need to rehabilitate and reconstruct ports across the country. He highlighted ongoing discussions with multilateral funding agencies and the careful consideration of various proposals to ensure optimal utilization of resources.
Bello-Koko outlined the division of focus between the ports in Lagos and those in the Eastern region, indicating separate funding arrangements for each. He reiterated the NPA’s commitment to enhancing port infrastructure nationwide to meet global standards and facilitate seamless maritime operations.
The Citibank facility was lauded for its affordability, offering favorable interest rates that make it an economically viable option for the Ports Authority. The loan represents a significant step towards revitalizing Nigeria’s port infrastructure and bolstering the country’s trade and maritime sectors.
The NPA’s efforts to secure funding for port rehabilitation underscore its dedication to driving economic growth and improving logistics efficiency across Nigeria’s maritime industry.
