In a dramatic turn of events, the Nigerian government has uncovered and is actively countering what it describes as a “fraudulent” attempt by a Chinese company, Zhongshan Fucheng Industrial Investment Co. Limited, to seize its presidential jets stationed in Paris.
The Special Adviser to the President on Information and Strategy, Bayo Onanuga, confirmed the incident in a statement, labeling the company’s actions as part of a broader scheme to illegally appropriate Nigerian assets abroad.
“The Presidency is aware of the various failed attempts by a Chinese company, Zhongshan Fucheng Industrial Investment Co. Limited, to take over offshore assets of the Federal Government of Nigeria through subterfuge,” Onanuga said, expressing the government’s resolve to protect national assets from “predators and shylocks who masquerade as investors.”
The conflict traces back to a 2007 contract between Zhongshan and the Ogun State Government for the management of a free-trade zone. However, the partnership soured by 2015, leading to a protracted legal battle.
Despite the minimal development accomplished by Zhongshan—a perimeter fence around the designated zone—the Arbitral Panel awarded the company over $60 million against the Federal Government, a co-defendant in the case.
The Nigerian government, in collaboration with the Ogun State government, has successfully resisted the enforcement of this award in various jurisdictions, including the UK and the USA. Nevertheless, Zhongshan has remained persistent, most recently obtaining ex-parte orders from the Judicial Court of Paris to seize Nigerian assets.
Onanuga decried these actions as “arm-twisting tactics” and accused Zhongshan of misleading the French court by withholding critical information about the nature of the assets, specifically the presidential jets, which are protected by diplomatic immunity.
“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a free-trade zone,” Onanuga added, pointing to the lack of substantive work done by the company before the contract was revoked.
The Ogun State government has not ruled out the possibility of a settlement, having engaged in multiple rounds of negotiations with Zhongshan, the most recent being in September 2023.
However, these talks have stalled, with the company’s demands for full payment of the arbitration award proving a significant barrier to resolution.
As the Nigerian government continues to challenge the legality of the Paris court orders, Onanuga reassured the public: “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.”
The unfolding situation has drawn comparisons to the notorious P&ID case, where foreign entities were accused of exploiting legal systems to defraud African governments.
The Nigerian government remains steadfast in its determination to prevent a repeat of such incidents, standing firm against what it perceives as unjust and fraudulent claims on its sovereign assets.