- Zhongshan's $74.5 million claim with Ogun state led to presidential jets seizure in France
- The Chinese company made several attempts to ‘fraudulently seize’ Nigeria’s assets according to the Federal Government
- FG condemns 'predatory' practices, vows to protect the country’s national assets from 'Shylocks'
The Presidency announced that the actions of Zhongshan Fucheng Industrial Investment Co. Limited, a Chinese company, that took over jets from Nigeria’s Presidential Air Fleet were fraudulent on Thursday, August 15.
The Special Adviser to the President on Information and Strategy, Bayo Onanuga, alleged that the Chinese company tried to seize Nigeria's offshore assets through unscrupulous means.
He said, “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,”
“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“When the contract with Ogun State was revoked in 2015, the company had only erected a perimeter fence on the land earmarked for a free trade zone,” Bayo Onanuga stated.
‘Zhongshan made several attempts to seize Nigeria's assets fraudulently’ - FG
The presidency emphasised that it had no contractual obligations with the Chinese company.
Bayo Onanuga said, “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,” he stated.
$74.5m issue with Ogun state led to presidential jets seizure
The seizure of the aircraft came as a result of an application submitted by the company, whose partnership with the Ogun State government began in 2010.
Ogun State government cancelled the contract with the Chinese company for overseeing a free-trade zone in 2015.
Dissatisfied, Zhongshan initiated an investment treaty arbitration against Nigeria under the bilateral investment treaty between the People’s Republic of China and Nigeria (the China-Nigeria BIT).
In 2021, the arbitration concluded that Nigeria had violated its obligations under the China-Nigeria BIT and granted the company compensation exceeding $74 million.
In March 2021, the Judicial Court of Paris allowed Zhongshan to seize the presidential jets as collateral for its $74.5 million claim against the Ogun State government.
The court further barred Zhongshan from selling or purchasing the aircraft until it received the $74.5 million it was awarded.
The case was taken to appeal by the Ogun State and the Nigerian government in eight jurisdictions, including the United States and the United Kingdom.
The most recent jurisdiction involved is France, where two Nigerian presidential jets are in for routine maintenance, and a third, newly purchased jet is still pending delivery.
FG vows to protect national assets against 'Predators' and 'Shylocks'
Bayo Onanuga alleged that the foreign company concealed crucial information and deceived the Judicial Court in Paris into seizing the Nigerian government’s presidential jets, which are undergoing routine maintenance in France.
Bayo Onanuga further said, “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.
“We want to assure Nigerians that the Federal Government is working with the Ogun State Government to discharge this frivolous order in Paris immediately.
“Nigerian Government will always work to protect our national assets from predators and shylocks who masquerade as investors.”
FG to save $7.9bn annually from fuel imports, approves crude oil sale in naira to Dangote, others
Meanwhile, TheRadar earlier reported that the Federal Executive Council (FEC) has approved the sale of crude oil to Dangote Refinery and other domestic refineries in naira.
According to the report, the approval to use the Dangote Refinery aims to fulfil Nigeria’s domestic consumption of 450,000 barrels. This decision will also help Nigeria save $7.9 billion annually on fuel imports.