Home Maritime NPA Finalises $700m Facility from Citibank Nigeria

NPA Finalises $700m Facility from Citibank Nigeria

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The Nigerian Ports Authority (NPA) has negotiated a facility of over $700 million from Citibank Nigeria to be funded by the UK Export Finance (UKEF) an export credit agency for the upgrading of the Apapa and Tin-Can Island Ports in Lagos.

This was made known on Wednesday in Lagos during the signing of the mandate letter with Citibank Nigeria.

Mohammed Bello-Koko, managing director of the NPA, said the mandate letter will be sent to the Debt Management Office for final review and approval.

He said NPA is also discussing 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 the Escravos breakwater.

He said the reconstruction of the Lagos Ports will start as soon as possible because the fund is ready.

“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 that have sent various proposals that we have reviewed.

“What we did is to further discussion with interested parties, and we realised is best to separate the ports in Lagos from the ports in the East, and we are in discussion with other funding agencies to fund the construction of ports outside Lagos,” he said.

He said the Citibank facility is the cheapest for the Ports Authority because it comes with affordable interest rates.

Earlier, Ireti Samuel-Ogbu, managing director of Citibank Nigeria Limited, said the bank is committed to supporting NPA and the federal government in bridging the infrastructure gap.

“We are delighted to be partnering with NPA especially being the collection bank for foreign and local currency port levies. Now, supporting this strategic initiative through export credit financing to upgrade port infrastructure in Tin-Can and Lagos Ports is commendable. However, we are committed to supporting NPA and the Nigerian Government in all its endeavours, especially in the infrastructure space.

She said Citibank was opportune to have met with Wale Edun, Minister of Finance, a few weeks ago where the port upgrading project was mentioned and he was very delighted about the project.

“Since NPA generates its foreign revenue, we will be able to support foreign facilities from our resources because this project is very strategic and an important project for NPA and the country at large.

“We are looking forward to this project and we thank NPA for giving us this opportunity and hope to bring this to fruition as soon as possible,” Samuel-Ogbu said.

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