NPA seeks DMO approval for $ 700m loan to rehabilitate Lagos Ports

THE Nigerian Ports Authority ( NPA) is awaiting the Debt Management Office's ( DMO) final review and approval of Citibank's $ 700 million loan mandate, which will fund the rehabilitation of the Apapa and TinCan Island ports in Lagos.

This follows the signing of the mandate letter between NPA and Citibank, facilitated by the United Kingdom Export Finance ( UKEF), an export credit agency.

Recall that during its recent budget defense before the House Committee on Ports and Harbours, the NPA had disclosed its pursuit of a N200 billion loan from the African Export- Import Bank ( Afrexim Bank) and the United Kingdom Export Finance to address infrastructural deficits at various ports, complementing other financing efforts to modernise port facilities across the nation.

The Managing Director of NPA, Mohammed Bello- Koko, announced that the agency is also in talks with additional funding bodies to secure financing for upgrading the Eastern Ports, including Calabar, Warri, Onne, and

Rivers Ports, as well as the reconstruction of the Escravos breakwater.

He said the funds are ready and the reconstruction of the Lagos Ports will start soonest even as the NPA perfects plans to sign another mandate letter for the upgrading of the Eastern Ports in about a month.

"In the last two years, NPA has realised the need to rehabilitate and reconstruct the ports all over the country. We have been having discussions with multilateral funding agencies that have sent various proposals that we have reviewed.

"We furthered discussion with interested parties and reviewed various proposals. 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.

Over the past two years, NPA has recognised the need to rehabilitate and reconstruct ports across the country.

He also noted that the Citibank facility offers the most favourable terms for the Ports Authority due to its affordable interest rates.