One of the high points of President Bola Tinubu’s recent state visit to the United Kingdom was the £746 million financing agreement to update two key ports in Lagos State – Tin Can Island and Apapa ports. The agreement was celebrated with so much fanfare by the Tinubu government. One would probably think that it would be free money from the British government. Far from it. The British government loaded it with neo-colonial landmines. The loan will be repaid at a great cost to Nigeria’s economy. The interest rate is also said to be brutal. The Tinubu government has been silent on this. Nigerians deserves to know the interest rate on this loan. Finance Minister, Olawale Edun, what are we paying for this loan? Please, speak up.
The £746 million loan is the usual neo-colonial Buyer Credit Facility. Simply put, it is “tied funding.” Nigeria must spend a large chunk of the £746 million on British goods (largely steel) to be used for the modernization of the ports. Besides, the money will be paid directly by the creditor to British suppliers. UK Export Finance (UKEF) will be spending a substantial part of this loan on behalf of Nigeria. Haba! Nigeria turned into “Maga”? We have taken a loan for a project and we can’t determine the suppliers and the prices of goods to be used.
For example, UKEF will pay £70 million directly to British Steel. The firm will supply 120,000 tonnes of steel for the modernization project. The neo-colonial agenda is for Nigeria to use the loan to stimulate UK’s economy. UKEF decided that the cost of the 120,000 tonnes of steel is £70 million. Shocking. A Chinese engineer working with CCECC told me few days back that this quantity of steel can be supplied by Chinese steel firms for about £30 million. The Nigerian government can’t even check out this Chinese option because we have been arms-tied to buy from British Steel. My Chinese friend also had a good laugh about the total cost of the project. “The Apapa and Tin Can Island ports modernization project can be delivered by any Chinese firm for around £250 million,” he declared.
Again, with this credit arrangement, Tinubu simply compounded Federal Government of Nigeria’s loan mess. As of Q3 2025, FGN’s foreign debt stood at US$52.76 billion, equivalent to approximately N77.81 trillion, using Q3 2025 exchange rate. This surge is largely driven by Naira downgrading and fresh borrowings. It seems President Tinubu has suddenly forgotten that the FGN is in a mess with the repayment of foreign loans. In this 2026 budget, loan repayment alone will swallow about 51 percent of expected revenue. The Tinubu government is manifestly struggling with repayment of foreign loans. So, why take more loans?
Yes, Tin Can Island and Apapa ports (Nigeria’s main harbours) responsible for more than 72 percent of its maritime activities, have been besmirched following years of neglect. They are scandalously inefficient and accurately require modernization. There is evidently a need to cut cargo waiting periods, reduce vessel turnaround times and lower logistics costs at these two ports; and others too. However, the modernization can be done without a foreign loan. This is the truth that must be told.
Has Tinubu forgotten that in this same country, a new sea port was built without any foreign loan? I am talking about the Lekki Deep Sea Port in Lagos State. The port operates under a 45-year concession arrangement based on a Build, Own, Operate, and Transfer (BOOT) model. The project, valued at $1.5 billion, is a Public-Private Partnership (PPP) involving a 75% stake from Lekki Port Investment Holding Inc. (including China Harbour Engineering Company); 20% from the Lagos State Government; and 5% from the Federal Government via the Nigerian Ports Authority (NPA).
It is not too late to stop this duplicitous British loan. The Senate must approve all foreign loans. This has not been done. The Senate must in the interest of this country reject this loan. It belongs to the waste basket. How I wish this is possible. Unfortunately, the Nigerian Senate is just a rubber-stamp institution. It is made up of largely jesters and bootlickers. Genuine patriots must put pressure on Tinubu to discard this rubbish British loan.
The truth remains that the modernization of Apapa and Tin Can Island ports can be delivered with private money using existing concessionaires. This country does not need foreign loans to modernize these lucrative ports. Existing concessionaires of Apapa, Tin Can Island and other ports will be happy to mobilise funds for the project in exchange for a good deal. I am talking about the likes of APM Terminals, Port and Cargo Handling Services (TCIP), PTML (TCIP), Five Star Logistics (TCIP), and Tin Can Island Container Terminal (TICT). The cheaper China option is also still there. The Chinese are ever ready. This should be the way forward.