ADC raises concerns over Nigeria, UK £747m deal to refurbish two major ports

Says the export finance deal disproportionately skewed in favour of UK

Emeka Agu with agency report

The African Democratic Congress (ADC), on Sunday, raised concerns over the £746 million agreement between Nigeria and the United Kingdom (UK).

The export finance deal is to support the redevelopment of two major ports in Lagos.

The agreement was announced on Thursday during a meeting between Prime Minister Keir Starmer and President Bola Tinubu at Downing Street in London.

Under the deal, UK export finance (UKEF) is expected to guarantee loans for the refurbishment of the Apapa and Tin Can Island port complexes.

Also, British Steel will supply 120,000 tonnes of steel for the port projects under a contract valued at £70 million.

However, reacting to the £746 million agreement in a statement on Sunday, ADC national publicity secretary, Bolaji Abdullahi, said the party “views the deal 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,” the statement reads.

Abdullahi said 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,” he said.

According to him, under the 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.

Abdullahi said the ADC is particularly concerned that the federal 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”.

He stressed that there are still several unanswered questions regarding the agreement.

“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 ADC spokesperson asked.

He said if the All Progressives Congress (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,” he added.