NPA Secures $700m Facility From Citibank To Rehabilitate Apapa, Tin-Can Ports

• The Nigerian Ports Authority (NPA) has secured a $700 million loan to rehabilitate the Apapa Tin-Can port
• The NPA also said that it has opened discussions with another agency to secure another facility for the rehabilitation of ports in the East
• The loan from Citibank will be forwarded to the Debt Management Office for proper documentation

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The Nigerian Ports Authority (NPA) has secured a $700 million facility from Citibank funded by the UK Export Finance (UKEF) to rehabilitate the Apapa and Tin-Can Island ports in Lagos.

The NPA also opened talks with another agency to fund the upgrading of the Eastern Ports, including the Calabar, Warri, Onne, and Rivers Ports, and the reconstruction of the Escravos breakwater.

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The new loan to be certified by DMO

The managing director of the NPA, Mohammed Bello-Koko, said on Wednesday, April 17, 2024, during the signing of the mandate letter that the debt would forwarded to the Debt Management Office (DMO) for review and approval.

According to him, the funds are ready, and the reconstruction will begin as soon as the port's authority has concluded plans to ink another deal for upgrading the eastern ports in a month.

Reports say that the NPA boss stated that the loan is the cheapest for the Ports Authority due to its affordable interest rates.

Per a statement by Koko-Bello, port efficiency requires automation and infrastructure, which will bring efficiency, increase revenue and block leakages,

He said the port management is implementing the Port Community System, a platform to improve trade facilitation.

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NPA decries bureaucracies in Nigerian ports

He revealed that importers and exporters in Nigeria still need to work on bottlenecks as they fill about 30 to 40 forms per transaction. However, he stressed that the Port Community System would reduce the number of forms, of human interference and boost speedy clearance processes.

The managing director of Citibank Nigeria, Ireti Samuel-Ogbu, said the bank is committed to supporting the NPA and the Nigerian government in bridging the infrastructure gap.

She stated that the bank met with the Minister of Finance, Wale Edun, over the port upgrade.

She said:

"Since NPA generates foreign revenue, we can support foreign facilities from our resources because this project is strategic and significant for NPA and the country. 

"We are looking forward to this project, and we thank NPA for giving us this opportunity. We hope to bring this to fruition as soon as possible," Samuel-Ogbu said.

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NPA inaugurates modern control towers

Earlier, Legit.ng reported that the Nigerian Ports Authority (NPA) had inaugurated brand new, modern control towers for port complexes in Lagos.

NPA said the commissioning of the control towers signifies its commitment to improving efficiency via bold infrastructure and equipment renewal.

The NPA stated that safety and security constitute the essential operational preconditions for realising its strategic goal of becoming the maritime logistics hub for ports in Africa.

Source: Legit.ng