ADC: Tinubu’s Port Rehab Agreement a ‘Mugun’ Deal, Loan is to Fund UK Economy

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Chuks Okocha in Abuja 

The African Democratic Congress (ADC) has described the £746 million agreement signed by President Bola Tinubu during his state visit to the United Kingdom as a ‘mugun’ deal, which disproportionately favoured the United Kingdom and its economy, while leaving Nigeria with a massive debt. 

In a statement by its National Publicity Secretary, Bolaji Abdullahi, the ADC said while the APC government has tried to pass off the deal as Tinubu’s major achievement, it was in fact an achievement of the UK Government, which, through this deal, has managed to save its steel industry, protect thousands of UK jobs, and get Nigeria to pay for it. 

It, therefore, called on the federal government to provide full transparency by disclosing comprehensive details of the agreement, including the applicable interest rates, repayment terms, and any local content provisions or obligations associated with the deal.

ADC said it viewed the £746 million agreement between the UK Government 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 enjoyed 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.

”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.

”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,” Abdullahi stated.

He said that the ADC was particularly concerned that the Nigerian government has entered into an agreement that left 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.