The African Democratic Congress (ADC) has criticised the £746 million agreement between Nigeria and the United Kingdom, describing it as unfavourable to Nigeria and raising concerns over its structure and long-term implications.
In a statement signed by its National Publicity Secretary, Bolaji Abdullahi, on Sunday, March 22, the party said the deal, reached during President Bola Tinubu’s recent visit to London, appears heavily tilted in favour of the UK.
“The African Democratic Congress (ADC) 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,” the statement read.
The party dismissed claims by the ruling government that the agreement, which focuses on the rehabilitation of Tin Can and Apapa ports in Lagos, represents a diplomatic achievement.
“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,” it stated.
According to the ADC, the financing arrangement is being executed through the UK Export Finance Buyer Credit Facility and arranged by a London-based financial institution, with a structure designed to prioritise British economic interests.
“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,” the party said.
The statement further explained the mechanics of the financing model, noting that it largely benefits UK exporters.
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“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,” it added.
The ADC expressed concern that a significant share of the contract value would go to British firms.
“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 statement noted.
The opposition party questioned the broader rationale behind the deal, suggesting it prioritises optics over national interest.
“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,” it said.
The party also raised several unanswered questions regarding the agreement, including its financial terms, local participation, and potential economic benefits for Nigerians.
“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?” the statement read.
It urged the government to provide clarity on these issues, warning that failure to do so could deepen public scepticism.
“If 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 country’s future for limited value and symbolism,” the party added.