The Nigerian Presidency has strongly condemned a French court’s decision to seize three presidential jets linked to the Federal Government, labeling the move a fraudulent attempt by the Chinese company Zhongshan Fucheng Industrial Investment Co. Limited. The seizure stems from a protracted dispute between Zhongshan and the Ogun State government, which revoked the company’s contract in 2016. An independent arbitral tribunal, chaired by a former President of the UK Supreme Court, awarded Zhongshan approximately $74.5 million in compensation.
In a statement titled “CHINESE COMPANY’S FRAUDULENT ATTEMPT TO STRIP NIGERIA’S ASSETS ABROAD,” the Presidency acknowledged ongoing efforts by the Ogun State Government to resolve the dispute with Zhongshan. The government asserted that Zhongshan lacks a legitimate basis for restitution regarding a 2007 contract to manage a free-trade zone, emphasizing that the company only constructed a perimeter fence before the contract was revoked in 2015.
Despite collaboration between the Attorney-General’s office and Ogun State to reach an amicable resolution, the Presidency noted that Zhongshan has obtained court orders in Paris without notifying either the Federal or Ogun State governments, further complicating the situation.
The Presidency likened Zhongshan’s tactics to those used in the notorious P&ID case, where a foreign entity sought to defraud Nigeria through legal maneuvering. The government claims that Zhongshan misled the Paris court about the nature of the presidential jets it seeks to attach, arguing that these assets are protected by diplomatic immunity.
Zhongshan’s previous attempts to enforce its judgment in the UK and the USA have failed. The Presidency believes the company is exploiting the situation to embarrass President Bola Tinubu and defraud Nigeria, with suspicions of collusion from certain bureaucrats.
The Nigerian government is actively working with Ogun State to challenge the recent French court order allowing Zhongshan to seize Nigerian assets. The Presidency assured citizens of its commitment to protecting national assets from what it describes as predatory tactics by the Chinese company.
In its statement, the Presidency made clear its stance:
“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. The Federal Government is fully aware of efforts being made by the Ogun State Government to reach an amicable resolution on the matter.
It must be said without any equivocation that Zhongshan has no solid ground to demand restitution from the Ogun State Government based on the facts regarding the 2007 contract between the company and the State Government to manage a free-trade zone. When the contract with Ogun State was revoked in 2015, the company had only erected a perimeter fence on the land earmarked for a free trade zone.
While the Attorney-General of the Federation and Minister of Justice is working with the Ogun State Government on an amicable resolution, Zhongshan obtained two orders from the Judicial Court of Paris dated March 7, 2024, and August 12, 2024, without any notice being duly served on the Federal Government of Nigeria and Ogun State Government.
This arm-twisting tactic by the Chinese company is the latest in a long list of failed moves to attach Nigerian government-owned assets in foreign jurisdictions. The material facts in the transaction between the Ogun State Government and Zhongshan point to another P&ID case in which unscrupulous and questionable individuals falsely present themselves as investors with the sole objective of undercutting and scamming Governments in Africa.
Undoubtedly, Zhongshan withheld vital information and misled the Judicial Court in Paris into attaching the Nigerian government’s presidential jets, which are on routine maintenance in France. The use and nature of the Presidential jets as assets of a Sovereign entity whose assets are protected by diplomatic immunity forbid any foreign Court from issuing an order against them.”
The statement concluded with a firm assurance that the Nigerian government will continue to work diligently to protect national assets from fraudulent claims, expressing confidence in overturning the French court’s order.
Background on the Zhongshan Fucheng Case
The dispute traces back to a 2007 contract between Ogun State and Zhongshan for the management of a free-trade zone. In 2015, the contract was revoked after the company failed to deliver beyond constructing a perimeter fence. Following arbitration in 2016, Zhongshan was awarded over $74.5 million in compensation by an arbitral panel. However, Ogun State, supported by legal advice, has resisted the enforcement of this award, successfully opposing it in multiple jurisdictions.
Efforts to settle the matter have been ongoing, with the most recent meeting taking place in September 2023. Despite initial signs of a possible settlement, discussions broke down when Zhongshan insisted on full payment of the arbitration debt. Subsequently, Zhongshan pursued enforcement proceedings, leading to the controversial French court order.
The Ogun State Government remains open to a reasonable settlement, having recently sent a letter to Zhongshan. The company, however, responded only after obtaining the latest order in France.
Special Adviser to the President on Information and Strategy, Bayo Onanuga, reiterated that the Federal Government is committed to discharging the frivolous order in Paris and safeguarding Nigeria’s assets from predatory tactics.
