A loan amounting to $700 million from Citibank has been secured by the Nigerian Ports Authority (NPA) to rehabilitate the Apapa and Tin-Can Island ports in Lagos. The funding for this project will be facilitated by the UK Export Finance (UKEF), an export credit agency.
Additionally, discussions have been initiated with another funding agency to acquire financial support for the enhancement of the Eastern Ports which include Calabar, Warri, Onne, and Rivers Ports. This also involves the reconstruction of Escravos breakwater.
During the signing of the mandate letter with Citibank Nigeria in Lagos, Mohammed Bello-Koko, the managing director of NPA, highlighted that the final review and approval of the mandate letter will be conducted by the Debt Management Office.
He emphasized that the funds are readily available and the reconstruction of the Lagos Ports will commence soon. Plans are also underway to sign another mandate letter for the upgrading of the Eastern Ports within a month.
Bello-Koko mentioned the importance of port infrastructure for port efficiency, in addition to the ongoing automation efforts which contribute to revenue increase and the reduction of leakages.
Furthermore, the implementation of the Port Community System is aimed at enhancing trade facilitation, streamlining clearance processes, and reducing the number of forms required for transactions.
Managing director of Citibank Nigeria Limited, Ireti Samuel-Ogbu, expressed the bank’s commitment to supporting NPA and the federal government in bridging the infrastructure gap. The bank, being the collection bank for foreign and local currency port levies, is pleased to be involved in upgrading the port infrastructure in Tin-Can and Lagos Ports.
Samuel-Ogbu also emphasized the strategic importance of the project and Citibank’s readiness to leverage its resources to support the foreign facility due to the project’s significance for NPA and the country.
The collaboration with NPA has been lauded by Citibank, and they are eager to expedite the project to fruition.