The Ogun State Government has expressed strong disapproval of a Chinese company’s attempt to seize three Nigerian government-owned aircraft in France.
The company, Zhongshan Fucheng Industrial Investment Co. Ltd., obtained two orders from the Judicial Court of Paris on March 7 and August 12, 2024, without giving proper notice to the Federal Government, Ogun State, or their legal representatives.
In a statement released by Hon. Kayode Akinmade, Special Adviser on Media and Strategy to the Governor of Ogun State, the government condemned Zhongshan’s actions as part of an ongoing effort to unlawfully seize Nigerian-owned assets in foreign jurisdictions. Despite these efforts, the company has been unsuccessful in recovering any sums from Nigeria.
“These aircraft are used exclusively for sovereign purposes and are immune from attachment under international and French law,” Akinmade said. “Zhongshan deliberately withheld crucial information from the Nigerian government and misled the Judicial Court of Paris regarding the nature of the assets it sought to attach.”
He further emphasized that the Ogun State Government, in collaboration with the Federal Government, has taken immediate steps to lift the provisional attachments. Akinmade compared the case to the notorious P&ID saga, accusing Zhongshan of acting in bad faith with the intent to defraud Nigeria and Ogun State.
*Background of the Dispute*
The conflict between Ogun State and Zhongshan dates back to 2007, when a contract was signed for the management of a free-trade zone. However, a dispute arose in 2015, leading to arbitration in 2016. In 2019, an Arbitral Panel awarded over $60 million against the Federal Government of Nigeria, which was a co-defendant, despite Zhongshan’s limited work on the project, which amounted to the construction of a perimeter fence.
“The Arbitral Panel’s decision was unfair and unacceptable, and this administration could not allow such a baseless ruling to stand,” Akinmade noted. “Based on sound legal advice, Ogun State resolved to resist enforcement of the award, and we have successfully done so in eight different jurisdictions.”
Legal battles over the case continue, with appeals pending in both the United States and the United Kingdom. Meanwhile, Ogun State has attempted to negotiate a settlement with Zhongshan. A mediation meeting held in London in September 2023 included several high-level officials, including Ogun State Governor Prince Dapo Abiodun and Nigeria’s Attorney General/Minister of Justice, Prince Lateef Fagbemi.
“Zhongshan initially seemed willing to consider a reasonable settlement, but they reversed their position and demanded full payment by the second day of talks,” Akinmade explained. “This led to a breakdown in negotiations, but Ogun State never gave up on finding a fair resolution.”
Despite continued efforts to settle the dispute, Zhongshan has evaded further negotiations and instead pursued enforcement actions in foreign courts. Akinmade reiterated Ogun State’s commitment to overturning these “spurious and baseless orders” and emphasized that the government will not be blackmailed or extorted.
“We regret any embarrassment this situation may have caused the Federal Government, President Bola Tinubu, and the good people of Ogun State,” Akinmade said. “However, we remain committed to protecting the nation’s assets and will resist any attempts to undermine Nigeria’s sovereignty.”
