“ADC Voices Concerns Over Controversial £746 Million Nigeria-UK Port Agreement”
The African Democratic Congress (ADC) has condemned a £746 million port restoration agreement established between Nigeria and the United Kingdom during the recent trip of President Bola Tinubu to London, labeling the contract as a “mugu agreement” that supposedly benefits the British economy while burdening Nigeria with considerable debt responsibilities.
In a statement released on Sunday by its National Publicity Secretary, Bolaji Abdullahi, the opposition party contended that the arrangement, aimed at facilitating the restoration of the Tin Can and Apapa ports in Lagos, primarily serves the UK’s manufacturing industry rather than Nigeria’s marketplace.
The party asserted that the government has depicted the agreement as a diplomatic achievement but insisted that the arrangement is fundamentally a commercial loan designed to guarantee that a significant amount of the funding returns to the UK through the procurement of British products and services.
“Although the APC administration has attempted to deceive Nigerians by framing the agreement to restore the Tin Can and Apapa Ports in Lagos as a diplomatic triumph, it is, in truth, a commercial loan arrangement with stipulations that ensure that a considerable fraction of the funds either stays within the United Kingdom or is returned to it,” Abdullahi stated.
As per the ADC, the deal will be executed through the UK Export Finance Buyer Credit Facility and coordinated by Citibank’s London branch.
Under this arrangement, the party highlighted, international buyers are able to obtain loans from commercial banks to purchase goods and services from UK businesses.
Referencing information from the UK government’s website, the ADC indicated that the agreement has been characterized as a “significant vote of confidence in UK manufacturing,” adding that at least £236 million of the £746 million in supplier contracts would be allocated to British companies.
The statement further claimed that British Steel is anticipated to furnish about 120,000 tonnes of steel billets under a £70 million contract for the port restoration projects, marking it as the company’s largest export order underwritten by the UK export credit agency.
The party voiced concerns that Nigeria might be entering into a loan arrangement that could position the country unfavorably.
“The Nigerian government has entered into a pact that positions the country at a distinct disadvantage, seemingly in return for a brief moment of spectacle and celebration,” Abdullahi noted.
The ADC also urged the Federal Government to ensure complete transparency by revealing the specifics of the agreement, including applicable interest rates, repayment conditions, and the extent of local engagement in the project.
It additionally sought clarification on the number of jobs the project would generate for Nigerians, the timeline for completing the restoration tasks, and provisions for skills transfer and training.
“If the APC administration possesses answers to these inquiries, it should share them with Nigerians,” the party remarked, warning that without such disclosures, citizens may interpret the agreement as one that jeopardizes the nation’s future.
The party further emphasized that the government must clarify the restrictions on expatriate personnel engaged in the project and whether quotas exist to ensure participation by Nigerian small and medium enterprises and local communities.
