Heritage Bank Plc is set to partner the Nigerian Port Authority, NPA, on improving infrastructure in the maritime sector. The bank revealed that it is ready to provide financing for building critical maritime infrastructure in the country.

Ifie Sekibo, managing director, Heritage Bank, who disclosed this at the International Association of Ports and Harbours (IAPH) Africa regional conference, in Abuja, said banks were willing to provide the necessary financing and support but the operators must be clear on where they are headed.

“The government will need to develop policies that will manage infrastructure programmes and we as bankers will give support. We are sure we can support, and we are sure going to support. The banking industry must stake in financing but we must have an understanding on what the industry wants,” he said.

Sekibo said Heritage Bank decided to sponsor and attend the conference to understand the focus of the industry. He said the banks were willing to offer, and are working on the possibilities of developing long-term loans with lower interest rate for operators in the industry. “Although there is the cabotage fund and shippers are taking advantage of it. We are still struggling with the kind of long-term funding shippers need to attain the level of optimisation they need, and talk is in progress.

“We are engaging the relevant stakeholders to make sure we get loans at cheaper interest rates for them but that can’t happen overnight. The commercial rates today are in the neighbourhood of 20 to 23 percent, but the cabotage is between nine to 13 percent interest rate. But how many of them have been able to borrow from the cabotage funds given the requirements?” he queried.

– Sept. 21, 2018 @ 12:55 GMT |