NPA Secures $700m For Tincan Island, Apapa Ports Rehabilitation

April 18, 2024
tincan-island-port

By Adedapo Adesanya

The Nigerian Ports Authority (NPA) has secured a $700 million loan from Citibank and funded the United Kingdom Export Finance to rehabilitate the Apapa and Tincan Island Ports in Lagos.

The Managing Director of the NPA, Mohammed Bello-Koko, disclosed this in a statement on Wednesday, noting that the loan mandate letter would be sent to the Debt Management Office for final review and approval.

He said NPA had opened discussions with another funding agency to finance the upgrading of the Eastern Ports, including Calabar, Warri, Onne, and Rivers Ports, and the reconstruction of Escravos Breakwater.

“Currently in Nigeria, importers or exporters fill 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.

“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,” Mr 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.

Mr 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

On hee part, the Managing Director of Citibank Nigeria Limited, Mrs 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 endeavours, especially in the infrastructure space,” Mrs Samuel-Ogbu said.

“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.

Adedapo Adesanya

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

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