The Federal Government of Nigeria has labeled the recent move by Chinese firm Zhongshan Fucheng Industrial Investment Co. Limited to seize three presidential jets as “fraudulent.” The judgement was granted by a court in Paris, which allowed Zhongshan to seize the jets as security for a $74.5 million compensation claim against the Ogun State government.
The dispute between Ogun State and Zhongshan began in 2015 after Ogun State revoked the Chinese company’s contract to manage a free-trade zone. Zhongshan subsequently initiated arbitration under the bilateral investment treaty between Nigeria and China, which resulted in the March 2021 ruling favoring the company. Despite this, the Federal Government argues that the Chinese firm is using underhanded tactics to target Nigerian assets not related to the contract dispute.
Presidential spokesman Bayo Onanuga criticized Zhongshan for attempting to “strip” Nigeria of its offshore assets using what he called “subterfuge.” He accused the firm of misleading the Paris court and obtaining orders without proper notice to Nigerian authorities. Onanuga also emphasized that the jets, being sovereign assets, should be protected from such legal actions.
The Nigerian government is working with Ogun State to address the issue and ensure the protection of national assets from what it describes as “predators and shylocks” masquerading as investors.