Monday, March, 23 2026 - 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.
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