The Nigerian Ports Authority (NPA) has secured about $700million loan from Citibank for the of Apapa and Tin-Can Island Ports in Lagos.
The loan is to be funded by the UK Export Finance (UKEF) an export credit agency. NPA has also opened discussions with another funding agency to secure…
The Nigerian Ports Authority (NPA) has successfully secured a loan of approximately $700 million from Citibank to facilitate the rehabilitation of the Apapa and Tin-Can Island Ports in Lagos. The funding for this loan is facilitated by the UK Export Finance (UKEF), an export credit agency.
Furthermore, the NPA is currently engaged in discussions with another funding agency to obtain financing for the upgrading of the Eastern Ports, which include Calabar, Warri, Onne, Rivers Ports, and the reconstruction of the Escravos breakwater.
During a signing ceremony in Lagos on Wednesday, Mohammed Bello-Koko, the Managing Director of the NPA, announced the signing of a mandate letter with Citibank Nigeria. This mandate letter will undergo final review and approval by the Debt Management Office.
Bello-Koko expressed confidence that the funds are readily available, enabling the commencement of the reconstruction of the Lagos Ports without delay. Additionally, plans are underway to sign another mandate letter within approximately a month for the upgrading of the Eastern Ports.
In the past two years, the NPA has recognized the urgent need for the rehabilitation and reconstruction of ports across the country. Discussions with various multilateral funding agencies have resulted in the review of multiple proposals. Subsequently, the decision was made to pursue separate funding for the Lagos Ports and the Eastern Ports.
Nigeria ports Authority
The Managing Director emphasized that the Citibank facility offers the most favorable terms for the Ports Authority, including affordable interest rates. This strategic financing arrangement underscores the commitment of the NPA to address critical infrastructure needs within Nigeria’s maritime sector.
