The Nigerian Presidency has announced plans to appeal a recent British Virgin Islands High Court judgment granting Chinese firm Zhongshan Fucheng Industrial Investment Co. Ltd. the right to seize $25 million worth of Nigerian foreign assets.
The dispute stems from a 2007 contract between Zhongfu, a subsidiary of Zhongshan Fucheng, and the Ogun State Government to develop a free trade area. Zhongfu alleged that Ogun State backed out of the arrangement, leading to arbitration proceedings in London.
A three-person arbitration panel awarded Zhongshan $70 million in damages, which has grown to $81 million with interest.
Special Adviser to the President on Policy Communications, Daniel Bwala, described the ruling as a warning. He said that Nigeria has the opportunity to appeal and vacate the ruling.
“We will continue to examine all options and take necessary steps to address these legal challenges, ensuring Nigeria’s rights and assets are preserved,” Bwala said.
In August 2024, a French court sanctioned the seizure of three Nigerian presidential jets, including the new Airbus A330 bought by President Bola Tinubu. However, Zhongshan released the aircraft after the Attorney General of the Federation and National Security Adviser initiated legal and diplomatic moves.
Meanwhile, Zhongshan has confiscated two residential structures in Liverpool, UK, belonging to Nigeria, with plans to sell them on eBay.
The British Virgin Islands High Court judgment cited the bilateral investment treaty between China and Nigeria, which states that both parties commit to enforcing the award. This, according to the court, constitutes written consent from the Nigerian state, allowing Zhongshan to enforce the judgment debt against Nigeria from the UK.
Ogun State had engaged Zhongshan in settlement discussions on reasonable terms previously. The last of such discussions was held in September 2023 in London, and it lasted for three days. The meeting was attended by several officials of Ogun State, including Governor Dapo Abiodun and the Attorney General and Minister of Justice, Lateef Fagbemi.
According to the Presidency, Zhongshan’s initial reasonable readiness to consider Ogun State’s offer was surprisingly reversed by the second day when it insisted on the government paying the full arbitration debt.
“This led to a breakdown of the mediation, with parties agreeing to meet again in the first quarter of this year. Since then, Zhongshan has been evasive. Instead, it embarked on a series of enforcement proceedings, which the legal team appointed by the FGN and Ogun State successfully opposed.
“In cases similar to the present one, where Zhongshan obtained an ex-parte order, Ogun State successfully set aside the orders.”
“Ogun State has not given up on a reasonable settlement option, with the most recent letter sent to Zhongshan last week. Zhongshan only responded after obtaining this latest illegal order,” Tinubu’s Special Adviser on Information and Strategy, Bayo Onanuga, had revealed in a statement.
WARNING: If You Are Not 18+, Don’t Click The Link Below 👇🫣
https://headacheaim.com/kx6iepv2qm?key=6c14bd1d68e1eba721851f19778f5efe
Please don’t forget to “Allow the notification” so you will be the first to get our gist when we publish it.
Drop your comment in the section below, and don’t forget to share the post.
Never Miss A Single News Or Gists, Kindly Join Us On WhatsApp Channel:
https://whatsapp.com/channel/0029Vad8g81Eawdsio6INn3B
Telegram Channel:
https://t.me/gistsmateNG
