Lack of $800m for infrastructure rehabilitation threatens port efficiency

There are indications that with delay in getting $800 million to fix the dilapidated ports infrastructure in the country, ports condition may worsen as some of the quays are already collapsing.

Already, the dilapidation of major seaports infrastructures, such as Tin Can Island Port and Apapa Port in Lagos, Onne Port in Rivers State and Escravos breakwaters in Warri Port and the Calabar Port in Cross River has continued to cause setback for trade facilitation and hinder much-anticipated economic growth and revenue generation as shipping companies use other neighbouring countries ports.

Also, the condition of the poor ports have hindered digitisation of the ports, while other neighbouring countries are investing in modern technological equipment that have been attracting Nigerian-bound cargoes, ensuring security and efficient e-cargo clearance system among others.

About 85 per cent of these ports infrastructures are over 40 years old and need urgent rehabilitation.

The Managing Director, Nigerian Ports Authority (NPA), Muhammed Bello-Koko, had, at the International Association of Ports and Harbors (IAPH) Europe and Africa 2023 Regional meeting, disclosed that about $800 million is needed to rehabilitate these ports infrastructure.

According to the NPA boss, the $800 million loan facility will be repayable in a seven-year period once secured, noting that the loan is still being worked out.

Bello-Koko also noted that having the project being funded by the authority will reduce its contribution to the Consolidated Revenue Fund (CRF).

The NPA boss confirmed that the rehabilitation would help in achieving the digitisation of all ports in Nigeria as port rehabilitation and remedial works are no more effective.

Meanwhile, the Minister of Transportation, Muazu Sambo, confirmed funding as reason for the delayed action on the rehabilitation plan on the port facility since he visited them for on the spot assessment last year.

He confirmed that NPA has commenced talks with AfroExim Bank, who had expressed readiness but with conditions that are not insurmountable for the authority, as well as NEXIM bank and Engineering Construction Plus Financing (ECPF).

“There are certain conditions that AfroExim Bank has put forward. They are three key conditions. I know that two of them are very easy to meet. The third one involves Sovereign Guarantee and we needed to clear that,” he said.

He further disclosed that a delegation of NPA management had also held meeting with the Permanent Secretary of Federal Ministry of Finance, Budget and National Planning.

“We have the quay apron and quay wall problem in Tin Can Island. We have collapsed quay wall problem also at Onne port, we have the challenge of breakwaters at Warri Escravos. These are dilapidation that will cost us millions of dollars.

“We must go through the entire process of public procurement Act as required by law. We have to ensure correct structural designs, the cost is well done and every survey is done whether biometric or hydrological. This must go to the Federal Executive Council. NPA does not have the resources in hundreds millions of dollars for it now,” Sambo said.