NPA Secures $700M Facility from Citibank for Apapa, Tin-Can Ports Rehabilitation
In a bid to revitalize the Apapa and Tin-Can Island ports in Lagos, the Nigerian Ports Authority (NPA) has finalized negotiations for a $700 million loan from Citibank. This financing, facilitated by the UK Export Finance (UKEF), an export credit agency, aims to enhance the infrastructure and operations of these key ports.
Additionally, discussions are underway with another funding agency to secure financing for the upgrade of Eastern Ports, including Calabar, Warri, Onne, and Rivers Ports, along with the reconstruction of the Escravos breakwater.
Mohammed Bello-Koko, the Managing Director of NPA, confirmed the milestone during the signing of the mandate letter with Citibank Nigeria in Lagos on Wednesday. He highlighted that the mandate letter would undergo final review and approval by the Debt Management Office, marking a significant step towards advancing port infrastructure development in Nigeria.
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.
“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 who have sent various proposals that we have reviewed.
“What we did is to further discussion with interested parties and we realised is 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,” he said.
According to him, the Citibank facility is the cheapest for the Ports Authority because its comes with affordable interest rates.
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“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 putting 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 will reduce the numbers of forms, human interference and ensure speedy clearance process in or out of the country,” he added
Earlier, managing director of Citibank Nigeria Limited, Ireti Samuel-Ogbu, said the bank is committed to supporting NPA and the federal government in bridging infrastructure gap.
“We are absolutely 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 Tin-Can and Lagos Ports is commendable. However, we are committed in supporting NPA and the Nigerian Government in all its endeavours especially in the infrastructure space.
According to her, Citibank was opportune to have met with Wale Edun, Minister of Finance, a few weeks ago where the port upgrading project was mentioned and he was very delighted about the project.
“Since NPA generates its own foreign revenue, we will be able to support foreign facility 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 into fruition as soon as possible,” Samuel-Ogbu said
