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Presidency Accuses Chinese Company of Plotting to Seize Nigeria’s Offshore Assets

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Presidency Accuses Chinese Company of Plotting to Seize Nigeria’s Offshore Assets

The Presidency has raised concerns over what it describes as an underhanded attempt by Zhongshan Fucheng Industrial Investment Co. Ltd., a Chinese firm, to seize Nigeria’s offshore assets through deceptive legal maneuvers.

In a statement released by Bayo Onanuga, Special Adviser to the President on Information and Strategy, the Presidency revealed that the Chinese company misled the Judicial Court in Paris, resulting in an order to attach Nigeria’s presidential jets, which were in France for routine maintenance. Onanuga emphasized that these jets are protected by diplomatic immunity as assets of a sovereign state, making them immune from foreign court orders.

“We are convinced the Chinese company misled the Judicial Court of Paris regarding the nature of the assets it seeks to attach and failed to fully disclose relevant information as required by law,” Onanuga stated.

He clarified that the Federal Government of Nigeria has no contractual obligation with Zhongshan Fucheng Industrial Investment Co. Ltd., noting that the legal dispute in question involves the Ogun State government, not the federal authorities. Onanuga assured the public that the Ogun State government is actively seeking an amicable resolution to the matter.

The dispute stems from a 2007 contract between the Ogun State government and the Chinese company to manage a free-trade zone. When the contract was revoked in 2015, Zhongshan had only managed to erect a perimeter fence on the designated land. Despite this, an arbitration panel awarded over $60 million against the Federal Government of Nigeria as a co-defendant in the case. Ogun State has since resisted the enforcement of this award in multiple jurisdictions, successfully blocking it in eight different courts.

Onanuga accused Zhongshan of employing “arm-twisting tactics” by obtaining ex-parte court orders in Paris on March 7 and August 12, without proper notification to either the Federal Government of Nigeria or Ogun State. He alleged that the Chinese company had previously attempted to enforce its judgment in the UK and USA, but failed.

“This unscrupulous attempt to seize Nigerian assets is part of a broader scheme by certain foreign companies, aided by corrupt bureaucrats, to defraud African governments,” Onanuga warned. He suggested that Zhongshan may have sold its judgment to venture capitalists seeking to embarrass the Nigerian government and President Bola Tinubu.

The Presidency assured Nigerians that it is working closely with Ogun State to overturn the Paris court’s order and will continue to protect national assets from what it described as “predatory” foreign interests.

The News Agency of Nigeria (NAN) reports that settlement discussions between Ogun State and Zhongshan have been ongoing, with the latest meeting held in September 2023 in London. Although progress was initially made, talks broke down when Zhongshan reversed its stance, insisting on full payment of the arbitration award. Despite this setback, Ogun State remains open to a reasonable settlement and continues to seek resolution.

Onanuga criticized Zhongshan’s subsequent evasive behavior, noting that the company has since pursued multiple enforcement actions, which have been successfully opposed by legal teams representing both the Federal Government and Ogun State. He added that Ogun State recently reached out to Zhongshan with a settlement proposal, only for the company to respond after securing the controversial court order.

“The Nigerian government remains committed to defending our national assets and ensuring that justice prevails,” Onanuga concluded.

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