Chinese Firm Zhongshan Fucheng Targets Nigerian Assets in Eight Countries, Including the UK and USA, Over Ogun FTZ Guangdong Free Trade Zone Dispute
Fiona Nanna, ForeMedia News
6 minutes read. Updated 8:40AM GMT Thurs, 15August, 2024
A high-stakes legal drama unfolding on the global stage, Zhongshan Fucheng Industrial Investment Co. Limited, a Chinese firm previously in the spotlight for its controversial seizure of Nigerian presidential jets, has now set its sights on assets linked to Nigeria in multiple countries. Reports from The PUNCH reveal that Zhongshan is actively pursuing claims in eight jurisdictions, including the United Kingdom, the United States, Belgium, Canada, France, Singapore, and the British Virgin Islands.
The dispute traces back to a 2001 bilateral investment treaty between China and Nigeria, aimed at fostering commercial ties. In 2007, Ogun State entered a joint venture with Zhongshan and another company to develop the Ogun Guangdong Free Trade Zone (OGFTZ). However, by 2010, the partnership between Ogun and Zhongshan faced turmoil, leading to legal actions that have since spanned several years and continents.
In the early stages of the dispute, Ogun State terminated its agreement with Zhongshan, leading to the company’s attempts to enforce its contractual rights. Legal proceedings were initially filed in Nigerian courts but were discontinued in 2018. However, the conflict escalated when a French court authorized the seizure of three Nigerian presidential jets. These jets, including a Dassault Falcon 7X, a Boeing 737, and an Airbus 330, were part of Nigeria’s presidential fleet and were recently put up for sale.
Documents obtained by The PUNCH indicate that Zhongshan’s aggressive legal tactics include seeking the recovery of assets linked to Nigerian ex-officials, such as a private jet previously owned by former petroleum minister Dan Etete. This jet, acquired with alleged proceeds from the $1.3 billion Malabu oil deal, has become a focal point in Zhongshan’s legal maneuvers.
The Chinese firm’s legal campaign has also involved a significant arbitration award. An independent tribunal, chaired by a former UK Supreme Court President, awarded Zhongshan $74.5 million in compensation. Despite this, the company has yet to recover any funds from Nigeria, leading it to pursue claims across various jurisdictions. The company has also recently escalated its demand for $130.6 million in compensation due to alleged breaches of contract.
Reacting to the situation, Nigeria’s Attorney General and Minister of Justice, Lateef Fagbemi (SAN), confirmed that both legal and diplomatic measures are being taken to recover the seized jets and counteract Zhongshan’s claims. The Federal Government maintains that the jets are sovereign assets protected by diplomatic immunity, a stance echoed by the Nigerian Presidency and Ogun State officials.
The Ogun State Government has criticized Zhongshan’s actions as fraudulent and deceitful. It argues that the Chinese firm misled foreign courts and is attempting to seize Nigerian assets unjustly. The state government also highlighted the history of the dispute, noting that previous attempts by Zhongshan to enforce its claims have been unsuccessful.
In conclusion, the ongoing legal battle between Zhongshan and Nigeria underscores the complexities of international investment disputes and the challenges faced by countries in protecting their assets against foreign claims. As the situation evolves, the global legal community will be watching closely to see how this high-profile case is resolved.
