ADC To Tinubu: £746 Maritime Deal Skewed In UK’s Favour

The African Democratic Congress, ADC, has criticised the fedral government over the recent £746 million agreement signed by President Bola Tinubu with the British government.

The opposition party said the agreement, meant to provide funding for the upgrade of two seaports in Lagos is skewed to the advantage of the United Kingdom.

According to a statement signed by Bolaji Abdullahi, on Sunday, the opposition party also called on the federal government to release the details of the agreement to Nigerians for proper scrutiny.

The attack on the federal government comes barely a week after President Bola Ahmed Tinubu, in a historic fashion, signed the financial agreement with the Keir Stammer-led government, to upgrade two seaports in Lagos, the Tin Can and Apapa Ports, to modern maritime facilities.

But, the ADC noted that the agreement favoured the UK more than Nigeria, saying that the repayment details was not included in the agreement. The partry stated that the agreement is capable of enslaving the country, many decades after gaining independence from the British Government.

“The African Democratic Congress views the £746m 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, “ ADC said.

“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.

“Based on information available on the UK Government website, which described the deal as a ‘major vote of confidence in UK manufacturing,’ the £746m 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.

“Under this agreement, at least £236m of the £746m in supplier contracts will be awarded to British companies, while British Steel will supply 120,000 tonnes of steel billets under a £70m contract, representing its largest UKEF-backed export order, for port rehabilitation projects.

The party also noted that the agreement may turn out to be a mere window dressing, saying that apart from the ‘pomp and pageantry” nothing is left in it to write home about.

“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.

“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 party said.