The Nigerian Ports Authority (NPA) has successfully secured a loan of $700 million from Citibank, with backing from the United Kingdom Export Finance (UKEF), an export credit agency. The loan, earmarked for the rehabilitation of the Apapa and Tin-Can Island ports in Lagos, signifies a major investment in revitalizing key ports infrastructure in Nigeria’s commercial capital.
The announcement was made by the Managing Director of the NPA, Mohammed Bello-Koko, during a ceremony held in Lagos on Wednesday to sign a mandate letter with Citibank Nigeria. Bello-Koko expressed confidence in the availability of funds and confirmed that the mandate letter would be forwarded to the Debt Management Office (DMO) for final review and approval. He emphasized the NPA’s commitment to commencing the reconstruction of the Lagos Ports expeditiously, leveraging the secured financing.
Furthermore, Bello-Koko disclosed that discussions are underway with another funding agency to secure additional financing for the upgrading of Eastern Ports, including Calabar, Warri, Onne, and Rivers Ports. Additionally, plans are in place for the reconstruction of the Escravos breakwater facility, reflecting the NPA’s comprehensive approach to modernizing ports infrastructure across the country.
Over the past two years, the NPA has recognized the urgent need to rehabilitate and reconstruct ports infrastructure nationwide. Through engagements with multilateral funding agencies, various proposals were reviewed to address the critical infrastructure needs of the ports. Following thorough evaluations and negotiations, the decision was made to prioritize the rehabilitation of ports in Lagos while separately addressing the infrastructure requirements of Eastern Ports.
Bello-Koko emphasized the importance of securing financing with favorable terms to ensure the successful implementation of port reconstruction projects. The partnership with Citibank Nigeria was praised for offering competitive interest rates, making it the preferred choice for the NPA. The availability of affordable financing is expected to facilitate the timely execution of the planned infrastructure upgrades.
The rehabilitation and reconstruction of ports infrastructure hold immense significance for Nigeria’s economy, particularly in enhancing trade facilitation and driving economic growth. By modernizing port facilities and improving operational efficiency, the NPA aims to attract increased investment, stimulate trade volumes, and enhance the competitiveness of Nigerian ports in the global market.
The successful securing of financing for port reconstruction projects underscores the importance of collaboration between public and private sectors in addressing critical infrastructure challenges. Through strategic partnerships and innovative financing solutions, stakeholders can unlock the full potential of Nigeria’s maritime sector and contribute to sustainable economic development.
Rewrite As the NPA moves forward with its ambitious agenda to revitalize ports infrastructure, stakeholders remain optimistic about the positive impact on job creation, revenue generation, and overall socio-economic development. By investing in the modernization of ports infrastructure, Nigeria is poised to strengthen its position as a key player in the global maritime industry, driving progress and prosperity for the nation and its citizens.
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