The Nigerian Ports Authority has stated that it can readily repay the $700 million loan facility negotiated for the refurbishment of Lagos’ Apapa and Tincan Island Ports.
This was disclosed by the Managing Director of NPA, Mohammed Bello-Koko while briefing pressmen about the activities of the NPA on Tuesday in Lagos, according to The Punch.
Bello-Koko claimed that the agency could produce revenue to cover the loan provided by UK Export Finance.
He noted that the loan, which was provided at less than 7%, had a 15-year payback period and a three-year moratorium.
He said “It has recently been difficult to get funding from international funding agencies. However, we have been able to get funding from the UK of over $700m for the Tincan and Apapa Ports. For the two ports, the current engineering designs and drafts are about 13.5 meters. We are reconstructing to 16.5 meters. The essence is to enable us to enjoy economies of scale from the size of vessels that come in there.”
The NPA chief also stated that the body was negotiating money for the rehabilitation of other eastern ports.
“We have also moved on to discuss with other funding agencies for the rehabilitation of the eastern ports. The oldest port is in the east, which is over 100 years old. That is the Rivers Port.
Discussing with the funding agencies, we finally narrowed it down to a Chinese construction company that will fund and construct,” he explained.
According to Bello-Koko, the Warri, Calabar, and Escravos breakwaters, which collapsed roughly ten years ago, need to be rebuilt.
He explained that the Tincan and Apapa ports would not be renovated concurrently to avoid disrupting port operations in the country’s busiest ports.
He said the Lekki Deep Seaport has been performing beyond expectations.
Bello-Koko also disclosed that the agency had improved access to the country’s ports, especially in Lagos, having reduced the number of checkpoints working with security agencies.
“We want to thank the Lagos State Government and security agencies who have worked with us to clear the port corridors,” he stated.
The NPA boss also stated that the authority has decreased shipments from the export processing zone from 21 days to 48 hours, which increased the country’s exports.
