Chinese firm aiming to seize Nigerian offshore assets, Presidency alleges
By Kunle Sanni
The Presidency has accused Zhongshan Fucheng Industrial Investment Co. Ltd., a Chinese company, of employing underhanded tactics in an attempt to strip the Nigerian government of its offshore assets. This follows reports that a French court ordered the seizure of three aircraft linked to the Nigerian government.
In a statement on Thursday, Bayo Onanuga, Special Adviser to the President on Information and Strategy, responded to the reports, clarifying that the seizure is tied to a long-standing legal dispute between the Ogun State government and Zhongshan.
According to sources, the seized aircraft include a newly acquired Airbus A330 valued at over $100 million, along with a Dassault Falcon 7X and a Boeing 737. These aircraft were either part of Nigeria’s presidential fleet or recently purchased by the government.
The legal conflict dates back to 2016 when Ogun State revoked Zhongshan’s contract to manage an export processing zone. Onanuga accused Zhongshan of deceitfully orchestrating the Paris court’s ruling to seize the presidential jets, which were undergoing routine maintenance in France.
Onanuga stated, “Zhongshan has no solid ground to demand restitution from the Ogun State Government based on the facts surrounding the 2007 contract between the company and the State Government to manage a free-trade zone. The Chinese firm misled the Judicial Court in Paris by withholding vital information and wrongly attaching Nigerian government assets that are protected by diplomatic immunity.”
He further alleged that Zhongshan had previously tried to enforce its questionable judgment in the UK and the USA but failed. “This is similar to the P&ID case, where foreign companies, in collaboration with some bureaucrats, attempt to defraud Nigeria. Zhongshan appears to have sold its judgment to a venture capitalist seeking to profit by embarrassing the Federal Government and President Bola Tinubu,” Onanuga added.
The Presidential adviser assured Nigerians that both the federal and Ogun state governments are actively addressing the matter and are committed to protecting the country’s national assets. “We want to assure Nigerians that the Federal Government, in collaboration with the Ogun State Government, is working swiftly to discharge this frivolous order in Paris. The Nigerian Government will always work to protect our national assets from predators and shylocks who masquerade as investors,” he said.
Background on the Zhongshan Fucheng case
The dispute between Ogun State and Zhongshan originated from a 2007 contract to manage a free-trade zone. The conflict escalated in 2015, leading to arbitration in 2016. By 2019, the Arbitral Panel awarded over $60 million against the Federal Government of Nigeria (FGN), a co-defendant, despite Zhongshan’s limited work on the project.
The Ogun State Government, based on legal advice, chose to resist the enforcement of the award and was successful in eight different jurisdictions. Appeals against recognition orders are still pending in the US and UK.
Ogun State engaged Zhongshan in settlement discussions, the latest of which occurred in September 2023 in London. Despite initial progress, Zhongshan unexpectedly demanded full payment of the arbitration debt, leading to a breakdown in negotiations. Since then, Zhongshan has pursued enforcement proceedings, which Ogun State has consistently opposed.
However, information available to the media, suggests that Ogun State remains open to a reasonable settlement, having sent a letter to Zhongshan as recently as last week, with reports revealing the latter only responded after obtaining the latest controversial court order.
