The African Democratic Congress (ADC) has described the Ā£746 million agreement signed by President Bola Tinubu during his state visit to the United Kingdom as a āmuguā deal, saying it disproportionately favoured the UK and its economy, while leaving Nigeria with a massive debt.
National Publicity Secretary of the ADC, Malam Bolaji Abdullahi, said while the All Progressives Congress (APC) has tried to pass off the deal as President Tinubuās achievement, it is in fact an achievement of the UK Government, āwhich, through this deal, has managed to save its steel industry, protect thousands of UK jobs, and get Nigeria to pay for it.ā
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.
āAlthough 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.
āBased on information available on the UK Government website, which described the deal as a āmajor vote of confidence in UK manufacturing,ā the Ā£746 million agreement will be delivered through UK Export Financeās (UKEF) Buyer Credit Facility and arranged by Citibank, N.A., London Branch.
āUKEF is the UK Governmentās 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.
āIn 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.
āUnder this agreement, at least Ā£236 million of the Ā£746 million in supplier contracts will be awarded to British companies, while British Steel will supply 120,000 tonnes of steel billets under a Ā£70 million contract, representing its largest UKEF-backed export order, for port rehabilitation projects.ā
The ADC raised concerns about Nigeria entering an agreement that appears one-sided, highlighting issues such as repayment terms, local participation, job creation, project timelines, skills transfer, and quotas for SMEs.
The party warned that without answers, Nigerians are justified in seeing the agreement as resembling a colonial-era treaty, signed amid pomp while millions of citizens continue to struggle with poverty, unemployment, and insecurity.
āIf 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 countryās future for limited value and symbolism.ā
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