The Nigerian Ports Authority (NPA) has secured a $700m loan, from Citibank to be funded by an export credit agency – UK Export Finance, for the rehabilitation of decaying port infrastructure at Apapa and Tin Can Island Ports in Lagos.
NPA revealed this in a recent press statement, stating that 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 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, while he added that the NPA had perfected plans to sign another mandate letter for the upgrading of the Eastern Ports in about a month.
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 said.
