The BBC wrote the below about the deal that Tinubu entered with the UK. Read it and I will try to break it down so you can understand the details before they’ll start spinning it as a big win for the nation.
The excerpt:
“A separate deal, worth £746m, will see two major ports in Lagos refurbished with the help of UK-backed loans.
UK Export Finance (UKEF), the UK government’s export credit agency, has provided a guarantee to the banks loaning the funds under the condition at least 20% of the contracts are sourced from the UK.
At least £236m of supplier contracts will be directed to British firms, including £70m for British steel – the company’s largest ever export backed by UKEF.”
Did Nigerians understand what happened there?
Here’s what happened.
The British government gave Tinubu a red carpet reception to simply make easy money from Nigeria:
- A British bank will issue a loan of £746m to Nigeria at an undisclosed interest rate. [Yes, the rate will be steep, but that’s not even the big issue].
- Then, at least 20% [£149.2M] of all the construction contracts for the renovation of the ports must be sourced from the UK.
- And then, at least another £236m of the borrowed £746m must be given back to British suppliers to supply what will be needed for the reconstruction.
- Also, £70M of the £236M must be used to buy British steel. This will be largest ever export by the Britiah steel company.
What the UK did to Tinubu is called “using a house mugu to move ahead”. Nigeria is simply being used to strengthen UK’s bank and steel industry, and to keep their citizens employed.
What does Nigeria get?
A heavy debt burden and a pat on the back for being a good “house mugu”.
You know what next will happen after the ports are refurbished? They’ll come back as “experts” to advise Nigeria to restructure the loan. UK will make back all the money they’re “loaning” Tinubu, and at least 100% more.
What the King did was simply high level marketing aimed at making money for his country. This is a long known playbook of the West, but clueless third world leaders often fall for it and then try to position it as a win for their country
This news was copied from the social media. It was not verified. Just senational.
