The Federal Government is worried because a Chinese company, Zhongshan Fucheng Industrial Investment Co. Limited, wants to take Nigeria’s presidential jets and other assets. They have taken this issue to a court in Paris, France.
Bayo Onanuga, who advises Nigeria’s President on Information and Strategy, said this company is making false claims against Nigeria, similar to a case in the UK called the PI&D case.
Onanuga explained that the problem started with a contract in 2007 between Zhongshan and the Ogun State government to manage a free-trade zone. Even though this issue was already resolved in Nigerian courts, Zhongshan is trying to take Nigeria’s assets in Paris through unfair means.
According to Onanuga, Zhongshan got two orders from the Paris court on March 7, 2024, and August 12, 2024, without properly notifying the Nigerian and Ogun State governments.
What the Government is Saying
The government’s statement:
“The Nigerian Presidency knows about the many failed attempts by Zhongshan Fucheng to seize Nigeria’s assets overseas deceitfully. The Federal Government doesn’t have any contract with this company. The issue is between Zhongshan and the Ogun State Government.
“Zhongshan has no valid reason to demand anything from the Ogun State Government based on their 2007 contract to manage a free-trade zone. Even though our Attorney-General and the Ogun State Government are trying to resolve this peacefully, Zhongshan got orders from a Paris court without notifying Nigeria properly.
This is one of many unsuccessful attempts by the Chinese company to grab Nigerian assets in foreign countries. The facts of the deal with Ogun State indicate another scam like the PI&D case, where people pretend to be investors to trick African governments,” Onanuga said.
Chinese Company Misleading the Paris Court
Onanuga also said that Zhongshan is deceiving the Paris court by not sharing important details about the case. They didn’t tell the court everything they should have about the assets.
He compared this to the PI&D case where foreign groups tried to cheat Nigeria out of its assets. Zhongshan misled the Paris court into trying to seize Nigerian presidential jets in France, which are protected by diplomatic rules.
“We believe Zhongshan misled the court about the assets’ use and didn’t share all necessary details. The same Chinese company tried but failed to enforce its questionable judgment in the UK and USA,” Onanuga added.
Details about the Case
In 2007, Ogun State and Zhongshan signed a contract to manage a free-trade zone. Disputes arose in 2015 and arbitration started in 2016. By 2019, over 60 million USD was awarded against Nigeria, yet Zhongshan had only built a fence around the trade zone.
Ogun State decided to resist this award legally and succeeded in 8 different places. Appeals are still pending in the US and UK. Attempts to settle with Zhongshan continued, but broke down when Zhongshan insisted on full payment.
Since refusing a reasonable settlement, Zhongshan has been trying to enforce the award, which Ogun State has successfully opposed. Despite ongoing negotiations from Ogun State, Zhongshan responded only after obtaining the latest court order.