The Presidency has expressed awareness of repeated attempts by Zhongshan Fucheng Industrial Investment Co. Limited, a Chinese company, to unlawfully claim offshore assets belonging to the Federal Government of Nigeria.
The government has described the moves as fraudulent and ungrounded, asserting that it has no contractual obligation with the firm.
According to a statement released by Bayo Onanuga, Special Adviser to the President on Information and Strategy, on X handle on Thursday, August 15th, 2024, the issue revolves around a contract dispute between Zhongshan and the Ogun State Government.
The dispute dates back to 2007, when the company entered into a contract with the state to manage a free-trade zone. The agreement was later revoked in 2015, following which Zhongshan initiated legal actions.
“Zhongshan Fucheng Industrial Investment Co. Limited has no solid grounds to demand restitution from the Ogun State Government,” said Onanuga.
“The facts surrounding the 2007 contract, and its revocation in 2015, clearly show that the company had only erected a perimeter fence on the land for the free-trade zone when the contract was terminated.”Despite efforts from Ogun State to resolve the issue amicably, Zhongshan pursued legal actions abroad.
The company recently obtained two orders from the Judicial Court of Paris, dated March 7 and August 12, 2024, without any formal notice being served on the Federal Government or the Ogun State Government.
“This tactic by the Chinese company is just another failed attempt to seize Nigerian government-owned assets in foreign jurisdictions,” Onanuga stated.
He compared the case to the infamous P&ID incident, which involved unscrupulous foreign entities trying to defraud African governments.
“Zhongshan withheld crucial information and misled the Judicial Court of Paris into attaching the Nigerian government’s presidential jets, which are currently in France for routine maintenance.
These assets, protected by diplomatic immunity, cannot be attached by any foreign court.”The Presidency emphasized that this is not the first time Zhongshan has tried to enforce its questionable judgment. Previous attempts in the UK and the USA were unsuccessful.
Onanuga assured the public that the Nigerian government, in collaboration with Ogun State, is working swiftly to discharge the recent Paris order.“We will protect our national assets from predators masquerading as investors,” Onanuga declared, adding that the Chinese company’s actions appear to be backed by a venture capitalist looking to embarrass the Federal Government and President Bola Tinubu.
Background to the DisputeThe contract between Ogun State and Zhongshan was executed in 2007, and a dispute arose in 2015. By 2019, an Arbitral Panel had awarded over $60 million against the Federal Government of Nigeria, despite Zhongshan having only built a perimeter fence at the site of the free-trade zone.
Following this, Ogun State resolved to resist the enforcement of the award, and their legal efforts have been successful in eight different jurisdictions.Governor Dapo Abiodun and other top officials from Ogun State met with Zhongshan representatives in September 2023 in London for mediation talks.
However, despite initial willingness from Zhongshan, the negotiations broke down when the company unexpectedly demanded full payment of the arbitration debt.“Zhongshan reversed its position overnight,” an Ogun State official remarked.
“By the second day of talks, they insisted on payment in full, which led to the collapse of negotiations.”While Ogun State continues to pursue a settlement, Zhongshan has resorted to legal maneuvers, including the recent ex-parte orders from the Paris court.
Ogun State, however, remains committed to reaching a reasonable resolution and is working closely with the Attorney-General of the Federation, Prince Lateef Fagbemi, on the matter.
The Federal Government reiterated its resolve to protect national interests and assets from any unjust claims. “Nigeria will never bow to fraudulent claims, and we are confident that this latest order will be discharged,” Onanuga concluded.
STATE HOUSE PRESS STATEMENT
CHINESE COMPANY’S ATTEMPT TO STRIP NIGERIA’S ASSETS ABROAD
The Presidency is aware of the various failed attempts by a Chinese company, Zhongshan Fucheng Industrial Investment Co. Limited, to take over offshore assets of the Federal Government of…
— Bayo Onanuga (@aonanuga1956) August 15, 2024
