Nigeria's Loans Fund UK Economy Through Port Deal, Claims ADC

The African Democratic Congress (ADC) has condemned the £746 million agreement that President Bola Tinubu signed during his official visit to the United Kingdom, labeling it as a 'mugu' deal that predominantly benefits the UK while shackling Nigeria with substantial debt.

Malam Bolaji Abdullahi, the National Publicity Secretary for the ADC, pointed out that while the All Progressives Congress (APC) attempts to spin the pact as President Tinubu’s achievement, it effectively serves the interests of the UK Government. "This deal allows the UK to safeguard its steel industry, protect thousands of jobs in the UK, and positions Nigeria as the financier," he stated.

The party has urged the Federal Government to ensure full transparency by revealing detailed information on the agreement, including interest rates, repayment terms, and any local content requirements or obligations related to the deal.

The APC Government has tried to deceive Nigerians by highlighting the deal aimed at rehabilitating the Tin Can and Apapa Ports in Lagos as a diplomatic victory. However, in reality, it is merely a commercial loan with conditions that guarantee that a large portion of the funds will either stay in the UK or be sent back there.

According to information from the UK Government's website, which describes the agreement as a ‘major vote of confidence in UK manufacturing,’ the £746 million deal is to be executed via UK Export Finance’s (UKEF) Buyer Credit Facility, facilitated by Citibank, N.A., London Branch.

UKEF, which is the export credit agency of the UK Government, offers a framework through which foreign buyers can obtain financing from commercial banks for the procurement of UK goods and services, typically for projects that require significant UK involvement.

In simpler terms, UKEF guarantees loans acquired by foreign buyers from a commercial bank, which are then used to pay for UK products and services, with the lending bank settling payments directly to the British exporter on the buyer's behalf.

Out of the £746 million in supplier contracts, at least £236 million is reserved for British firms, while British Steel is set to supply 120,000 tonnes of steel billets under a £70 million contract, marking its largest export order related to UKEF for port rehabilitation.

The ADC raised alarms about Nigeria entering such an apparently lopsided agreement, drawing attention to critical issues like repayment terms, local involvement, job creation, project timelines, skills transfer, and quotas for small and medium enterprises (SMEs).

The party cautioned that in the absence of satisfactory responses, Nigerians are justified in viewing the agreement as reminiscent of colonial-era treaties, signed amid celebration, while many citizens continue to face poverty, unemployment, and insecurity.

“If the APC government has clear answers to these inquiries, they should share them with Nigerians. Otherwise, the conclusion is clear: 66 years post- independence, President Bola Tinubu has traveled to London to sign an agreement comparable to a colonial treaty, endangering the nation's future for marginal returns and symbolic significance,” the ADC stated.