NPA Gets Citibank $700m Facility To Fix Apapa, Tin-Can Ports Infrastructure

BY EGUONO ODJEGBA

After what looked like eternity amid all manners ofinterferences and frustrations, management of the Nigerian Ports Authority (NPA) has secured a $700 million facility from Citibank to kick start the rehabilitation of broken down infrastructure at the Apapa and Tin Can Ports, both in Lagos operational area.

The authority five months ago said it needs $1.1 billion facility to be able to comprehensively fixe the nation’s ports collapsed assets and infrastructures.

Speaking during the signing of a mandate letter with Citibank Nigeria in Lagos, the Managing Director of the NPA, Mohammed Bello-Koko said the agency negotiated a loan of $700million from the Citibank to be funded by the UK Export Finance (UKEF) – an export credit agency, to rehabilitate the Apapa and Tin-Can Island ports, Lagos.

He further disclosed that NPA has opened discussion with another funding agency to secure more to  upgrade the Eastern Ports including Calabar, Warri, Onne and Rivers Ports as well as the reconstruction of Escravos breakwater; which has been a sore point.

The NPA helmsman informed that the mandate letter would be sent to the Debt Management Office for final review and approval. He explained that secured fund is ready for the commencement of the reconstruction of the Lagos ports.

His words, “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 it 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 the Citibank facility was the cheapest for Nigeria owing to its friendly interest rate, and thanked the Minister of Marine Blue Economy, Adegboyega Oyetola for assisting the authority to this, including other key performance indicators.

“I want to specially thank the minister for his support and passion for the country. Port efficiency is not about automation, which we have already begun, it is also about the physical infrastructure, which must be in place and that is why we are automating. Automation will naturally bring efficiency, increase revenue and plug leakages.”

Speaking on efforts to up the efficiency drive of the authority in achieving improved service delivery, Bello-Koko also said NPA is not resting on its oar to make the Port Community System, a platform that would improve trade facilitation in place, a reality.

“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.”

Speaking earlier, the Managing Director of Citibank Nigeria Limited, Ireti Samuel-Ogbu said the bank is committed to supporting NPA and the Federal Government in bridging the ports 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.

“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”, she added.