ADC Questions £746m Port Deal, Says Nigeria Carrying Heavy Debt Burden

ADC Questions £746m Port Deal, Says Nigeria Carrying Heavy Debt Burden

The African Democratic Congress (ADC) has criticised the Federal Government over the £746 million port redevelopment agreement signed during President Bola Tinubu’s recent visit to the United Kingdom, describing the deal as unfavourable to Nigeria.

In a statement o Sunday, the party’s National Publicity Secretary, Bolaji Abdullahi, argued that the agreement appears to benefit the British economy more than Nigeria, raising concerns about the financial implications for the country.

The deal, which is aimed at rehabilitating the Tin Can and Apapa ports in Lagos, is being implemented through the UK Export Finance (UKEF) Buyer Credit Facility, with financing arranged by Citibank’s London branch.

According to the ADC, the structure of the agreement suggests that a significant portion of the funds will be tied to the procurement of goods and services from British companies, thereby supporting industries in the UK.

“While it has been presented as a diplomatic success, the reality is that this is a commercial loan arrangement with conditions that ensure a substantial part of the funds either remains in the UK or is returned there,” Abdullahi said.

He noted that at least £236 million worth of contracts under the deal are expected to go to British firms, while a separate £70 million contract will see British Steel supply materials for the port projects.

The party further argued that the arrangement effectively allows the UK to protect jobs and boost its manufacturing sector, while Nigeria takes on the burden of repayment.

The ADC has called on the Federal Government to provide full details of the agreement, including interest rates, repayment structure, local content requirements, and potential benefits for Nigerian businesses.

It also raised questions about job creation, skills transfer, and the extent to which local contractors and small businesses would benefit from the project.

Without such clarifications, the party warned that the agreement could be perceived as one-sided, especially at a time when many Nigerians are grappling with economic hardship.

“If the government has answers to these questions, it should make them available. Otherwise, Nigerians are justified in questioning the value of this deal,” the statement added.

The development has added to ongoing debates over Nigeria’s borrowing strategy and the long-term impact of foreign-backed infrastructure financing on the country’s economy.