The Nigerian Presidency has acknowledged the unsuccessful efforts by Zhongshan Fucheng Industrial Investment Co. Ltd., a Chinese firm, to unlawfully claim the nation’s offshore assets.
Mr. Bayo Onanuga, the Special Adviser to the President on Information and Strategy, issued a statement emphasizing that Zhongshan misled a Parisian court into attaching Nigeria’s presidential jets in a judgment against the Ogun State government.
Onanuga criticized the misrepresentation concerning the presidential jets, which were undergoing routine maintenance in France at the time. He asserted that these jets are sovereign assets, shielded by diplomatic immunity, preventing any foreign court from issuing orders against them.
“We believe the Chinese company intentionally misled the Judicial Court of Paris about the nature and use of the assets it aimed to attach without providing full disclosure, as mandated by law,” he stated. He further clarified that the Federal Government does not have any contractual obligations with Zhongshan, highlighting that the ongoing dispute is limited to the company and the Ogun State government.
According to Onanuga, the Federal Government is aware of the Ogun State government’s initiatives to amicably resolve the issue. He pointed out that Zhongshan lacks a legitimate basis to demand restitution from Ogun, referencing a 2007 contract for managing a free-trade zone. He noted that when the contract was terminated in 2015, the company had only completed the construction of a perimeter fence on the designated land.
While the Attorney-General of the Federation collaborates with Ogun State for a peaceful resolution, Zhongshan reportedly secured two orders from the Judicial Court of Paris. These orders, dated March 7 and August 12, were issued without proper notification to either the Federal Government or the Ogun State government.
Onanuga condemned this “arm-twisting” tactic as part of a series of unsuccessful attempts by the Chinese firm to attach Nigerian government assets abroad. He warned of the presence of dubious individuals posing as investors with the intent to exploit African governments. He noted that Zhongshan had previously attempted to enforce its questionable judgment in the UK and the USA but failed.
He stressed that foreign entities are attempting to defraud Nigeria, sometimes with the complicity of certain bureaucrats. “Zhongshan seems to have sold its judgment to a venture capitalist looking to profit by embarrassing the Federal Government and President Bola Tinubu,” he added.
Onanuga assured the public that the Federal Government is actively working with Ogun State to contest the frivolous order in Paris. “We remain committed to safeguarding our national assets from predators who disguise themselves as investors,” he affirmed.
The News Agency of Nigeria (NAN) reported that the contract between Ogun State and Zhongshan for managing a free-trade zone was initiated in 2007. Disputes arose in 2015, leading to arbitration in 2016, and by 2019, the arbitration panel had awarded over $60 million against the Nigerian Federal Government, despite Zhongshan having only constructed a perimeter fence.
Following legal counsel, Ogun State decided to resist the enforcement of the award, successfully doing so in eight different jurisdictions. Appeals are still pending regarding recognition orders issued in the US and the UK.
Ogun State also engaged Zhongshan in discussions for a reasonable settlement, with the latest meeting occurring in September 2023 in London, attended by various Ogun officials. However, Zhongshan’s initial willingness to consider the offer changed abruptly, leading to a breakdown in mediation.
Onanuga noted that since then, Zhongshan has been evasive, choosing to pursue enforcement actions, which the legal teams from both the Federal Government and Ogun State successfully opposed.
He pointed out that Ogun State has not abandoned the pursuit of a reasonable settlement, with the most recent correspondence sent to Zhongshan last week, which was only answered after the latest illegal order was issued.
