The Nigerian Ports Authority (NPA) is set to receive a $700 million loan from Citibank, which is to be funded by the UK Export Finance (UKEF). The fund is meant to revamp the Apapa and Tincan Island ports in Lagos State.
The Managing Director of NPA, Mohammed Bello-Koko, announced this development on his official X (formerly Twitter) account on Wednesday, stating that he had signed the Mandate Letter and Term Sheet for the loan.
He noted that the funds would be used to rehabilitate the quay wall for landside operations and enhance other infrastructure, deepening the draft to 16.5 meters to allow larger vessels at both ports. The project, however, will happen after approval by the Minister of Marine & Blue Economy, the Minister of Finance, and the Debt Management Office.
- “This evening, I had the pleasure of signing the Mandate Letter and Term Sheet for @Citibank’s $700m loan to be funded by the UK Export Finance (UKEF) to revamp the Apapa & TinCan Island Ports.
- “Our target is to rehabilitate the deteriorating quay wall for landside operations and other physical infrastructure to deepen the drought to 16.5m to accommodate larger vessels.
- I am thrilled to announce that Citibank offered us the most competitive rate,” the statement read in part.
The NPA Managing Director’s statement also revealed that discussions with other multilateral funding agencies are nearing conclusion for the rehabilitation of Calabar and Onne ports, as well as the Warri Escravos breakwater, as part of the Ministry of Marine & Blue Economy’s port modernization program.
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What you should know
- On November 7, 2023, the Managing Director of the Nigerian Ports Authority (NPA), Bello-Koko,.had announced that $1.1 billion would be spent to rehabilitate ports in the first quarter of 2023 to fortify Nigeria’s trade competitiveness.
- The NPA Managing Director pointed out that almost every port in Nigeria requires rehabilitation.
- Bello-Koko also disclosed that NPA was initiating a substantial overhaul for all ports, starting with the TinCan and Apapa ports in Lagos.
