Lekki Port refutes banks’ alleged lack of interest in project

The rumour that the Lekki Port project was not moving at the expected pace because of funds and that banks were not funding the project because it’s not a project with quick profit returns have been rebutted by the project company.

Speaking with a select group of journalists in Lagos, Sandeep Parasramka, chief finance officer of Lekki Port, said the rumours were unfounded.

Putting the records straight, Parasramka said: “African Development Bank (AfDB) has recently obtained board approval for funding of US$150 million to the project and European Investment Bank has also got in principle board approval for 160 million euro. AfDB is also leading the loan syndications with other development institutions such as of IFC, Propaco etc. which constitutes almost half of the total debt required for the project and their credit approval was dependent on AfDB approval to a large extent.

“Also, AfDB approval signals clearance of project’s environment and social impact as per World Bank guidelines. We have few more international commercial banks that are also in the process of securing their credit approvals. All the banks are very keen to participate in the project given its strategic importance, competitive advantage, good financial returns and strong government support.”

He further disclosed that based on various market studies and a study on macro-economic impact conducted by independent world renowned consultancy firms, Lekki Port can “proudly say that together with the government we are developing a project that has the potential to become the gateway to Nigeria for trade and foreign direct investment. The port is expected to generate directly and indirectly about 163,000 jobs during the concession period. The revenue to state and federal agencies from taxes, royalties and duties is projected to amount to the tune of US$190 billion during the same period. If the project holds US$190 billion in stock by taxes, royalties and duties, you can imagine what kind of revenues it can generate.”

Parasramka clarified that banks were not “sponsoring” the project, but were issuing loans to the project company. He explained that banks by their very nature of business “do not sponsor such projects”.