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The African Democratic Congress (ADC) has criticised a £746 million port rehabilitation agreement signed between Nigeria and the United Kingdom during the recent visit of President Bola Tinubu to London, describing the deal as a “mugu agreement” that allegedly favours the British economy while saddling Nigeria with significant debt obligations.
In a statement issued on Sunday by its National Publicity Secretary, Bolaji Abdullahi, the opposition party argued that the deal, intended to support the rehabilitation of the Tin Can and Apapa ports in Lagos, largely benefits the UK’s manufacturing sector rather than Nigeria’s economy.
The party said the government had portrayed the agreement as a diplomatic success but insisted that the arrangement is essentially a commercial loan structured to ensure that much of the funding returns to the UK through procurement of British goods and services.
“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,” Abdullahi said.
According to the ADC, the deal will be implemented through the UK Export Finance Buyer Credit Facility and arranged by Citibank’s London branch.
Under the arrangement, the party noted, foreign buyers can access loans from commercial banks to procure goods and services from UK companies.
Citing information on the UK government’s website, the ADC said the agreement had been described as a “major vote of confidence in UK manufacturing,” adding that at least £236 million of the £746 million in supplier contracts would be awarded to British companies.
The statement further claimed that British Steel is expected to supply about 120,000 tonnes of steel billets under a £70 million contract for the port rehabilitation projects, describing it as the company’s largest export order backed by the UK export credit agency.
The party expressed concern that Nigeria might be committing to a loan arrangement that could leave the country at a disadvantage.
“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,” Abdullahi said.
The ADC also called on the Federal Government to provide full transparency by disclosing the details of the agreement, including the applicable interest rates, repayment terms, and the level of local participation in the project.
It further demanded clarification on the number of jobs the project would create for Nigerians, the timeline for completing the rehabilitation works, and provisions for skills transfer and training.
“If the APC government has answers to these questions, it should make them available to Nigerians,” the party stated, warning that without such disclosures, citizens may view the agreement as one that risks mortgaging the country’s future.
The party added that the government must also clarify the limits on expatriate staff involved in the project and whether quotas exist to ensure participation by Nigerian small and medium enterprises and host communities.
