Nigerian Ports Authority (NPA) Able to Repay $700 Million Loan for Port Rehabilitation
The Nigerian Ports Authority (NPA) is confident in its ability to repay a $700 million loan secured for the rehabilitation of the Apapa and Tincan Island Ports in Lagos. NPA Managing Director, Mohammed Bello-Koko, made this statement during a press briefing in Lagos.
Favorable Loan Terms and Increased Revenue Generation Expected
Bello-Koko highlighted the favorable terms of the loan, including a low-interest rate (less than 7%), a 15-year repayment term, and a 3-year moratorium on repayments. He expressed confidence that the NPA would be able to generate sufficient revenue to comfortably repay the loan.
Upgrading Ports for Larger Vessels and Improved Efficiency
The loan will be used to deepen the draft of the Apapa and Tincan Island Ports from 13.5 meters to 16.5 meters. This upgrade will allow the ports to accommodate larger vessels, leading to economies of scale and improved efficiency in cargo handling.
Funding Secured for Rehabilitation of Eastern Ports
The NPA is also looking to secure funding for the rehabilitation of eastern ports, including the Rivers Port, which is over 100 years old. Discussions are ongoing with potential funders, with a focus on a Chinese construction company for funding and construction.
Rehabilitation of Warri, Calabar, and Escravos Ports on the Horizon
The NPA has identified the need for the reconstruction of ports in Warri, Calabar, and Escravos, where breakwaters collapsed approximately 10 years ago. Rehabilitation plans for these ports are also underway.
Phased Approach to Avoid Disruption
To minimize disruption to port operations, the rehabilitation of the Apapa and Tincan Island Ports will be carried out in phases. This ensures that at least one port remains operational at all times.
Lekki Deep Seaport Performance Exceeds Expectations
The NPA reported that the Lekki Deep Seaport has been performing beyond expectations, contributing to overall port efficiency.
Improved Access to Ports and Reduced Export Processing Times
The NPA has collaborated with the Lagos State Government and security agencies to reduce the number of checkpoints around the ports, improving access for cargo movement. Additionally, the export processing system has been streamlined, reducing processing times from 21 days to 48 hours. This has significantly boosted the country’s non-oil exports, with the Nigerian Export Promotion Council reporting $4.5 billion in non-oil exports for 2023.
