- Warns That Nigerian Government Has Entered Into An Agreement That Leaves The Country At Clear Disadvantage
- Queries Repayment Terms, Interest Rates, Level Of Local Content, Others
The African Democratic Congress (ADC) has sharply criticized the £746 million agreement signed between the United Kingdom and Nigeria during President Bola Tinubu’s recent state visit to London, describing it as a lopsided deal that heavily favors Britain.
In a statement issued by Bolaji Abdullahi, the party argued that the arrangement—framed by the All Progressives Congress (APC) government as a diplomatic success—was 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.”
Citing information published on the UK Government’s website, Abdullahi noted that the deal was hailed in Britain as “a major vote of confidence in UK manufacturing.”
He explained further that 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.
“The financing is structured through UK Export Finance’s (UKEF) Buyer Credit Facility, arranged by Citibank’s London branch, which guarantees loans for foreign buyers to procure UK goods and services.
“Under the terms, at least £236 million worth of supplier contracts will go to British companies, while British Steel will supply 120,000 tonnes of steel billets under a £70 million contract—the largest UKEF-backed export order in its history.
“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.
“This is part of a broader attempt to secure foreign validation, even as millions of Nigerians continue to face poverty, unemployment, and worsening insecurity.”
The ADC raised a series of unanswered questions about the deal, including repayment terms, interest rates, the level of local content, job creation prospects, project timelines, training provisions, and limits on expatriate staff.
Abdullahi insisted that Nigerians deserve clarity: “If the APC government has answers to these questions, it should make them available. 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’s intervention underscores growing domestic scrutiny of the UK-backed port rehabilitation project, which the government has touted as a milestone in infrastructure renewal but which critics warn could deepen Nigeria’s economic dependency.
