FG Accuses Chinese Firm Of ‘Fraudulent’ Attempt To Seize Nigeria’s Assets

The Nigerian government has strongly condemned a Chinese company, Zhongshan Fucheng Industrial Investment Co. Limited, after a French court ruled in favor of the firm, granting the seizure of Nigerian presidential jets. These jets, which were in France for routine maintenance, were ordered to be seized as "security" for claims in a long-standing legal dispute between Zhongshan and the Ogun State government.

Presidential spokesman Bayo Onanuga labeled the actions of the Chinese firm as subterfuge, accusing Zhongshan of attempting to unlawfully take control of Nigeria's offshore assets. The dispute stems from a 2007 contract in which Zhongshan agreed to manage a free trade zone in Ogun State. However, the contract was revoked in 2015, leading the company to pursue legal action under the China-Nigeria Bilateral Investment Treaty (BIT). An arbitration tribunal ruled that Nigeria had breached its obligations under the BIT, awarding Zhongshan significant compensation.

The Nigerian government, along with Ogun State, has challenged the arbitration award across multiple jurisdictions, including the UK and the US. Despite these efforts, a Paris court recently upheld the arbitration ruling and permitted the seizure of the presidential jets.

Onanuga criticized Zhongshan for misleading the French court and using underhanded tactics to target Nigerian government assets. He stressed that the Nigerian government is not party to the original contract dispute and that the case solely involves the Ogun State government. Onanuga further noted that the presidential jets, as assets of a sovereign nation, should be protected by diplomatic immunity, making the French court's order illegitimate.

He assured Nigerians that the federal government, in collaboration with Ogun State, is taking immediate steps to overturn the court order. The government remains committed to safeguarding national assets from what it describes as predatory actions by companies like Zhongshan.

This court order comes at a time when the state of Nigeria's Presidential Air Fleet has been under scrutiny. Recently, the government has faced criticism over the planned purchase of a new presidential jet, following several incidents where existing jets malfunctioned, including one that prevented Vice President Kashim Shettima from attending a crucial summit in the US earlier this year.