The African Democratic Congress has faulted the £746 million agreement signed by President Bola Tinubu during his UK state visit, describing it as disproportionately benefiting the United Kingdom while leaving Nigeria with a heavy debt burden.
On Sunday, the ADC, in a statement by its national publicity secretary, Bolaji Abdullahi, urged the federal government to ensure complete transparency regarding the terms of the deal and its impact on the local economy.
During President Tinubu’s state visit to the United Kingdom last week, Nigeria and the UK inked a £746 million (approximately $997 million) agreement to upgrade port infrastructure at two of Nigeria’s busiest maritime centres in Lagos State, a development anticipated to enhance trade, generate employment, and strengthen economic relations between the two nations.
The ADC emphasised that the government should disclose full details of the agreement, including interest rates, repayment schedules, and any local content requirements or obligations tied to the project.
It stated, “The African Democratic Congress views the £746 million agreement between the Government of the United Kingdom and the Federal Government of Nigeria, concluded during President Bola Tinubu’s state visit to London, as disproportionately skewed in favour of the UK, which already enjoys a significant balance of trade advantage over Nigeria.
“Although the APC government has tried to hoodwink Nigerians by portraying the agreement to rehabilitate the Tin Can and Apapa ports in Lagos as a diplomatic success, it is, in reality, a commercial loan arrangement with conditionalities that ensure that a substantial portion of the funds either remains within the United Kingdom or is repatriated back to it.
“Based on information available on the UK Government website, which described the deal as a ‘major vote of confidence in UK manufacturing,’ the £746 million agreement will be delivered through UK Export Finance’s (UKEF) Buyer Credit Facility and arranged by Citibank, N.A., London Branch.
“UKEF is the UK Government’s export credit agency. Its Buyer Credit Facility enables foreign buyers to access financing from commercial banks to procure UK goods and services, typically for projects that require significant UK content participation.
“In simple terms, UKEF guarantees a loan obtained by a foreign buyer from a commercial bank, which is then used to pay for UK goods and services, with the bank paying the UK exporter directly on behalf of the buyer.”
The ADC expressed concern that the Nigerian government has entered into an agreement that appears to put the country at a significant disadvantage, seemingly traded for a brief display of ceremony and fanfare.
It continued, “Under this agreement, at least £236 million of the £746 million in supplier contracts will be awarded to British companies, while British Steel will supply 120,000 tonnes of steel billets under a £70 million contract, representing its largest UKEF-backed export order, for port rehabilitation projects.
“The ADC is particularly concerned that the Nigerian government has entered into an agreement that leaves the country at a clear disadvantage, seemingly in exchange for a few hours of pomp and pageantry, and as part of a broader attempt to secure foreign validation, even as millions of Nigerians continue to face poverty, unemployment, and worsening insecurity.
“There are still several unanswered questions regarding this agreement. These include: what are the repayment terms of the commercial loan, including its duration and applicable interest rate? What percentage of local goods, services, and subcontracting is involved in the port rehabilitation project? How many direct and indirect jobs will be created for Nigerians? What is the project timeline, and when will the ports become fully operational? What provisions exist for training, apprenticeships, and skills transfer? Finally, what are the limits on expatriate staff, and are there defined quotas for SMEs and community benefit obligations?
“If the APC government has answers to these questions, it should make them available to Nigerians. Otherwise, Nigerians are justified in concluding that, 66 years after independence, President Bola Tinubu has travelled to London to sign an agreement that resembles a colonial-era treaty, one that risks mortgaging the country’s future for limited value and symbolism.”