The African Democratic Congress (ADC) has criticised the £746 million Nigeria-UK port redevelopment agreement, warning that the deal may favour the United Kingdom at Nigeria’s expense.
The agreement, finalised in London, was announced following talks between Keir Starmer and Bola Tinubu at Downing Street. It is aimed at supporting the rehabilitation of the Apapa and Tin Can Island port complexes in Lagos.
Nigeria’s minister of finance, Wale Edun, said the deal aligns with the government’s focus on infrastructure, energy, and industrial development. He added that strengthening bilateral partnerships would attract investment, stimulate economic growth, and create jobs.
Under the arrangement, UK Export Finance (UKEF) will guarantee loans used for the port projects, while British Steel will supply 120,000 tonnes of steel valued at £70 million.
However, the ADC argues that the structure of the agreement raises concerns. In a statement by its spokesperson, Bolaji Abdullahi, the party described the deal as a commercial loan arrangement with conditions that ensure a significant portion of the funds returns to the UK.
According to Abdullahi, the financing is being delivered through UKEF’s buyer credit facility, arranged by Citibank’s London branch. He explained that the mechanism allows foreign buyers to secure loans used primarily to procure UK goods and services, with payments made directly to British exporters.
The ADC noted that at least £236 million of the contract value will go to British companies, reinforcing concerns about limited local economic benefits for Nigeria.
The party also raised several unanswered questions about the deal, including repayment terms, interest rates, job creation potential, and the level of local participation in the project.
It further queried provisions for skills transfer, training opportunities, and the involvement of small and medium-sized enterprises (SMEs).
The ADC warned that without clear disclosures, Nigerians may view the agreement as unfavourable, cautioning that it could deepen economic challenges rather than alleviate them.
