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Fed Govt to rebuild Tin Can Island Port

Posted on June 22, 2022

The Federal Government is considering  there-construction of the multibillion naira Tin Can Island Port in Lagos, which has become weak due to its age, the Minister of State for Transportation, Senator Gbemisola Saraki, said yesterday.

She spoke during her tour of the Lagos Port Complexes in Lagos, stressing that there was the need for the government to modernise the two ports in Lagos to berth modern vessels.

NPA had budgeted over N300 billion ($600 million) to reconstruct the ports.

The minister reaffirmed the position of the management of the Nigerian Ports Authority (NPA) for the reconstruction of Quay walls of the Tin Can Island Port Complex, which she said, have become very weak.

She said: “We cannot build on a weak foundation. It is vital that we get these two very important ports modernised and ready to berth modern vessels. The state of the ports shows decades of neglect but it’s better late than never.”

The minister’s position is in harmony with that of the Managing Director of NPA, Mr Mohammed Bello Koko, who had raised concern over the poor state  of the port complex and allayed the fears of stakeholders as the Authority is already at conclusive stages of funding options to save the port from imminent collapse.

The options, according to Koko, include talks with competent multilateral funding institutions and the possibility of the Authority using a percentage of the revenue or transfers to CRF to fund the reconstruction of the port.

He said: “Although the NPA had over the years been undertaking remedial works on the quays, the time has come for a holistic reconstruction and the Authority is working with the Federal Ministry of Transportation on the most prudent funding option.

“We are on the verge of concluding discussions with multilateral funding agencies to fund the reconstruction. The other option is to go to the government to request that the NPA be allowed to use a certain percentage of its revenue which is transferred to the consolidated revenue fund (CRF) on yearly basis to fund the reconstruction. We transfer about N60 billion a year and we can use about 50 per cent of that to repair Tin Can. Another option is to do hybrid funding where NPA funds part and multilateral agencies fund the rest.”


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