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Nigeria’s Ogun State Battles Chinese Company Zhongshan Over Asset Attachments

In a shocking turn of events, the Ogun State Government in Nigeria has found itself embroiled in a dispute with the Chinese company, Zhongshan Fucheng Industrial Investment Co. Ltd. (Zhongshan), over the attachment of three Nigerian government-owned aircrafts in France.

According to a statement released by Hon. Kayode Akinmade, Special Adviser on Media and Strategy to the Governor of Ogun State, the company attached the aircrafts without notice to the Federal Government of Nigeria, Ogun State, or their legal counsel. This is the latest in a series of attempts by Zhongshan to attach Nigerian-owned assets in foreign jurisdictions, none of which have led to the recovery of any sums from Nigeria.

The three aircrafts, used solely for sovereign purposes, are immune from attachment under international and French law. Zhongshan deliberately withheld information from the Federal Government of Nigeria, Ogun State, and their legal counsel, and also misled the Judicial Court of Paris as to the use and nature of the assets it sought to attach.

Ogun State, in conjunction with the Federal Government of Nigeria, has taken swift action to ensure that the provisional attachments are lifted without delay. The state government has also engaged Zhongshan in settlement discussions on reasonable terms, but the company has refused to consider a settlement, insisting on the payment of the full debt.

This dispute is reminiscent of the P&ID case, where unscrupulous individuals masqueraded as foreign investors with the sole aim of defrauding Ogun State and Nigeria. The Ogun State Government has vowed to resist any attempts at blackmail and theatrics designed to extort and embarrass the country.

The underlying contract between Ogun State and Zhongshan was executed in 2007, 12 years before the present administration, for the management of a free-trade zone. The parties entered into a dispute in 2015, with arbitration commencing in 2016. The Arbitral Panel awarded over 60 million USD against the Federal Government of Nigeria, which was a co-Defendant, for building a perimeter fence around the free-trade zone.

The Ogun State Administration has resisted the enforcement of the award, successfully opposing it in 8 different jurisdictions. The state government has also appealed against recognition orders issued in both the US and UK.

The Ogun State Government has reaffirmed its commitment to protecting the integrity of the nation and its assets, vowing to resist any attempts at blackmail and theatrics. The state government has also expressed regret over any embarrassment caused to the Federal Government of Nigeria, President Asiwaju Bola Tinubu, and the good people of Ogun State.

The dispute is ongoing, with the Ogun State Government working to lift the provisional attachments and find a resolution to the dispute.