Presidency Labels Chinese Company’s Actions as Fraudulent
The Nigerian Presidency has strongly condemned the actions of Zhongshan Fucheng Industrial Investment Co. Limited, a Chinese company attempting to seize aircraft from Nigeria’s Presidential Air Fleet. The Presidency labeled the company’s efforts as fraudulent after a Paris court ordered the seizure of three presidential aircraft. The Nigerian government insists these jets, as sovereign assets, are protected by diplomatic immunity. They argue that any foreign court order against them is invalid.
Dispute Originates from Breach of Contract Allegations
The dispute stems from a 2007 contract between Zhongshan Fucheng and the Ogun State Government to develop a free trade zone. Zhongshan claims that Ogun State breached the agreement, leading to significant financial losses for the company. After the contract’s cancellation in 2015, Zhongshan pursued arbitration, resulting in a $70 million award against Nigeria in 2021. The company now claims the amount has grown to $81 million with interest. However, the Nigerian government argues that Zhongshan’s claims are misleading, pointing out that the company only built a perimeter fence and failed to develop the promised infrastructure.
Presidency Denounces Legal Tactics as Misleading
The Nigerian government, represented by Special Adviser Bayo Onanuga, accused Zhongshan of withholding crucial information from the Paris court. The Presidency claims Zhongshan misled the court about the assets, leading to an erroneous order. They assert that Nigeria has no direct contractual ties with Zhongshan, as the dispute involves Ogun State.
Ogun State Government Engages in Legal Battles
The Ogun State Government has actively resisted enforcing the arbitration award, successfully opposing Zhongshan’s efforts in eight countries. Settlement discussions with Zhongshan failed when the company demanded full payment of the arbitration debt. The Presidency affirms that the Nigerian government supports Ogun State in its legal fight against these claims.
Comparison to Previous Legal Battles
The Nigerian government compared Zhongshan’s tactics to the P&ID case, where foreign entities tried to exploit legal systems. The Presidency warned that Zhongshan’s actions reflect a broader pattern of unethical practices by companies targeting African governments. These actions are seen as attempts to undermine Nigeria and other African nations. The Nigerian government emphasized its commitment to protecting national assets from such predatory actions.
Assurances of Protection and Resolution
The Presidency assured Nigerians it is collaborating with Ogun State Government to overturn Paris court orders and prevent asset seizures. The government remains committed to defending Nigeria’s interests. They aim to ensure foreign companies cannot exploit legal loopholes to undermine the country’s sovereignty and economy.
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