Nigerian Ports Authority Confident in Repayment of $700m Loan for Port Rehabilitation
The Nigerian Ports Authority (NPA) is poised to comfortably repay the $700 million loan it secured for the comprehensive rehabilitation of the Apapa and Tincan Island Ports in Lagos, according to Managing Director Mohammed Bello-Koko. Speaking at a press briefing on Tuesday in Lagos, Bello-Koko affirmed the authority’s robust revenue generation capacity, which would ensure the smooth repayment of the UK Export Finance-funded loan.
“The NPA can conveniently service this loan, given our substantial revenue streams,” Bello-Koko stated. He highlighted the favourable terms of the loan, which boasts an interest rate of less than seven percent, a 15-year repayment period, and a three-year moratorium.
He emphasized the significance of the upgrade, explaining, “Currently, the engineering designs and drafts for both ports stand at approximately 13.5 meters. The reconstruction will extend this to 16.5 meters, thereby allowing us to handle larger vessels and achieve economies of scale.”
Bello-Koko also revealed ongoing negotiations for funding to revamp other ports in Nigeria’s eastern region, noting that the Rivers Port, the oldest in the east, is over a century old. “We are in discussions with a Chinese construction company to fund and execute these rehabilitations,” he added.
Addressing the needs of the Warri, Calabar, and Escravos ports, Bello-Koko underscored the necessity of reconstructing their breakwaters, which collapsed a decade ago. He assured that the Tincan and Apapa ports would be rehabilitated in phases to avoid disrupting port activities.
The NPA chief praised the performance of the Lekki Deep Seaport, stating that it had exceeded expectations. He also highlighted improvements in access to Lagos ports, achieved through collaboration with the Lagos State Government and security agencies to reduce checkpoints.
Bello-Koko commended the Nigeria Customs Service for their role in enhancing trade facilitation, which has notably increased the country’s exports. “Our export processing system has significantly reduced bottlenecks, cutting export times from 21 days to 48 hours,” he noted.
The Nigerian Export Promotion Council reported that non-oil exports attracted $4.5 billion in 2023, underscoring the impact of streamlined export processes on the nation’s economy.
