(Industrial Times, Nigeria)
Today, the Nigerian government linked the seizure of its presidential jets in Paris, to a failed industrial contract between a Chinese company, Zhongshan Fucheng Industrial Investment Co Limited, and the Ogun State Government.
The Nigerian government’s presidential jets were on routine maintenance in France.
“The Federal Government is not under any contractual obligation with the company.
The case in which Zhongshan is trying to use every unorthodox means to strip our offshore assets is between the company and the Ogun State Government,” said Bayo Onanuga, Special Adviser to the President on Information and Strategy.
In a statement, today, Onanuga, clarifies that
the plot by the Chinese firm to seize the Nigerian government’s presidential jets abroad, “is fraudulent.”
Onanuga noted that the federal government in collaboration with the Ogun State government is doing everything possible to quash the frivolous order in Paris.
He assured Nigerians that the government will always work to protect the ‘national assets from predators and shylocks who masquerade as investors’.
He said that the Attorney-General of the Federation and Minister of Justice are working with the Ogun State Government on an amicable resolution.
Background to the Zhongshan Fucheng Case:
A contract between Ogun State and Zhongshan to manage a free-trade zone was executed in 2007.
The parties entered into a dispute in 2015, and arbitration began in 2016.
By 2019, the arbitration hearing had been concluded.
The Arbitral Panel awarded over 60 million USD against the Federal Government of Nigeria (FGN), a co-defendant, when all Zhongshan had done was build a perimeter fence around the free-trade zone.
Based on legal advice, the Ogun State Government resolved to resist the enforcement of the award.
The resistance was successful in 8 different jurisdictions.
There are pending appeals against recognition orders issued in both the US and UK.
Ogun State also engaged Zhongshan in settlement discussions on reasonable terms.
The last meeting, held in September 2023 in London, lasted for three days and was attended by several officials of Ogun State, including Governor Dapo Abiodun and the Attorney General/Minister of Justice, Prince Lateef Fagbemi.
Zhongshan’s initial reasonable readiness to consider Ogun State’s offer was surprisingly reversed by the second day when it insisted on the government paying the full arbitration debt. This led to a breakdown of the mediation, with parties agreeing to meet again in the first quarter of this year. ▪︎