More Trouble Looms As Chinese Firm Moves To Seize Ex-minister Private Jet, Other Nigerian Assets In US, UK, Canada
A Chinese firm, Zhongshan Fucheng Industrial Investment Co. Limited, known for securing a court order that grounded three Nigerian presidential jets in Europe, is reportedly moving to seize other Nigerian assets in the United States, the United Kingdom, and six other nations.
This development has sparked significant concern among Nigerian officials, who have vowed to defend the country’s foreign assets against such attempts.
Documents obtained by The PUNCH reveal that the Chinese company has initiated legal proceedings in at least eight jurisdictions worldwide, including Belgium, Canada, France, Singapore, and the British Virgin Islands, to enforce its claims against Nigerian assets.
The controversy stems from a long-standing dispute between the company and the Ogun State Government over the management of the Ogun Guangdong Free Trade Zone, a project originally established through a joint venture between Ogun State and a Chinese entity.
Zhongshan’s parent company was contracted in 2010 to develop an industrial park within the zone. However, in 2016, the agreement was abruptly terminated, prompting Zhongshan to pursue legal action in various courts.
Recently, a French court authorized the seizure of three Nigerian presidential jets—a Dassault Falcon 7X, a Boeing 737, and an Airbus 330—as part of the ongoing legal battle.
These assets were intended for sale by Nigeria or were in the process of being acquired but are now tied up in litigation.
The dispute escalated after an independent arbitral tribunal chaired by a former UK Supreme Court President awarded Zhongshan $74.5 million in compensation, an amount the Ogun State Government has yet to pay.
Consequently, the court prohibited the Nigerian government from moving or selling the jets until the payment is made.
In addition to the jets, Zhongshan has allegedly attempted to seize other assets linked to Nigeria, including a private jet previously owned by former petroleum minister Dan Etete, which the Nigerian government had seized as part of an investigation into the infamous $1.3 billion Malabu OPL245 oil deal.
The Chinese company claims that Nigeria breached the bilateral investment treaty between the two countries by failing to provide fair treatment and wrongfully expropriating its investments without compensation. It has been pursuing compensation through various legal channels, seeking a total of $130.6 million due to the alleged breach of contract.
The Nigerian government, however, disputes these claims. The Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, has announced that legal and diplomatic efforts are underway to recover the seized presidential aircraft, asserting that the jets are sovereign assets protected by international law.
A statement from the Presidency accused Zhongshan of attempting to mislead the French court and fraudulently acquire Nigerian assets abroad.
The Ogun State Government has also condemned the judicial process that led to the provisional attachment of the aircraft, describing it as a “charade” and alleging that Zhongshan concealed critical information from the court.
Both the Nigerian government and the Ogun State Government have pledged to resist Zhongshan’s efforts to enforce the arbitral award, with ongoing legal battles in multiple jurisdictions. The outcome of these proceedings could have significant implications for Nigeria’s international assets and its relations with foreign investors.
