The African Democratic Congress (ADC) has described the £746 million agreement signed by President Bola Ahmed Tinubu during his state visit to the UK as a ‘mugu’ deal, which disproportionately favoured the United Kingdom and its economy, while leaving Nigeria with a massive debt.
The ADC, in a statement signed by its National Publicity Secretary, Bolaji Abdullahi, said while the APC government has tried to pass off the deal as President Tinubu’s major achievement, it is in fact an achievement of the UK Government, which, through this deal, has managed to save its steel industry, protect thousands of UK jobs, and get Nigeria to pay for it.
The party called on the Federal Government to provide full transparency by disclosing comprehensive details of the agreement, including the applicable interest rates, repayment terms, and any local content provisions or obligations associated with the deal.
It said any failure on the part of the All Progressives Congress (APC) to provide those details transparently, Nigerians are justified in concluding that, 66 years after independence, President Tinubu has travelled to London to sign an agreement that resembles a colonial-era treaty that risks mortgaging the country’s future for limited value and symbolism.
The statement read: “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.
“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?”
On Thursday, at Lancaster House, President Tinubu, together with his wife, Oluremi Tinubu, witnessed the £746m agreement for the modernisation of the infrastructure at the Apapa and Tin Can Island ports in Lagos.
The agreement was signed on behalf of Nigeria by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun and the Parliamentary Under-Secretary of State and UK Minister for Small Business and Economic Transformation, Blair McDougall MP, on behalf of the British government.
Edun explained that the agreements are consistent with Nigeria’s priority on infrastructure, energy, and industrial development.
He noted that the increasing emphasis on bilateral partnerships would help attract the scale of investment required to boost economic activity, create jobs, and reduce poverty, in line with the administration’s Renewed Hope Agenda.
He said the agreements underscore growing confidence and mutual trust between both countries, as well as a shared commitment to deliver tangible economic outcomes for Nigeria and the United Kingdom.