The Nigerian Ports Authority (NPA), has signed a $700 million agreement with Citibank for the rehabilitation of the Apapa Tin Can Ports in Lagos State, Nigeria.
This is coming as the Port opened discussion with another funding agency to secure financing for upgrading of the Eastern Ports including Calabar, Warri, Onne and Rivers Ports as well as the reconstruction of Escravos breakwater.
The $700million is part of a $1.1 billion port rehabilitation project earlier announced by the NPA last year
Speaking during the signing of a mandate letter with Citibank Nigeria in Lagos on Wednesday, Managing Director of NPA, Mohammed Bello-Koko said the $700million from the Citibank is to be funded by the UK Export Finance (UKEF), an export credit agency.
Bello-Koko, noted that the mandate letter would be sent to Debt Management Office for final review and approval.
The NPA boss further stated that with the funds ready, the reconstruction of the Lagos ports will start soon.
He also stated the NPA was perfecting plans to sign another mandate letter for the upgrading of the Eastern ports soon.
He said: “In the last two years, NPA has realised the need for us to rehabilitate and reconstruct the ports all over the country. We have been having discussions with multilateral funding agencies who have sent various proposals that we have reviewed.
“What we did is to further discussion with interested parties and 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 stated.
Bello-Koko added that the Citibank facility has affordable interest rate compared with others.