The African Democratic Congress (ADC) has criticised a £746 million agreement signed by President Bola Tinubu during his recent state visit to the United Kingdom, calling it “another debt trap” for Nigeria.
In a statement issued on Sunday, ADC National Publicity Secretary Bolaji Abdullahi described the deal as a “mugu deal,” a local term meaning an arrangement that disproportionately benefits one party. The opposition party argued that the agreement favours the UK’s economy while leaving Nigeria with significant financial obligations.
“The government has tried to pass off the deal as President Tinubu’s major achievement. In reality, it is 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,” the statement read.
The ADC called on the Federal Government to provide full transparency, urging it to disclose comprehensive details of the agreement, including applicable interest rates, repayment terms, and any local content provisions or obligations associated with the deal.
“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,” the ADC said.
“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 party added.
The opposition also highlighted that at least £236 million of the £746 million will be awarded to British companies, with British Steel supplying 120,000 tonnes of steel billets under a £70 million contract—the company’s largest UKEF-backed export order. The funds are earmarked for rehabilitation works at Lagos’ Tin Can and Apapa Ports.
“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,” the statement said.
The party further questioned several aspects of the deal, including repayment terms, the duration of the commercial loan, the percentage of local goods, services and subcontracting involved in the port rehabilitation project, and the number of direct and indirect jobs to 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 asked.
The opposition concluded that if the All Progressives Congress (APC) government has answers to these questions, they should be made available to Nigerians. Otherwise, the party warned, “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.”
President Tinubu, during his UK visit, described the agreement as a diplomatic success aimed at modernising Nigeria’s ports and boosting trade efficiency. The government has maintained that the funding will improve infrastructure at Lagos’ key ports, though detailed terms of the agreement have not been publicly disclosed.
