Zhongshan Fucheng Industrial Investment Co. Limited, a Chinese company, has ramped up its legal efforts to seize Nigerian assets worldwide. This follows their recent success in obtaining a court injunction that grounded three Nigerian presidential jets in Europe.
The company has now filed legal actions in eight countries, including the UK, the US, Belgium, Canada, France, Singapore, and the British Virgin Islands. These steps are part of Zhongshan’s strategy to enforce a $74.5 million arbitration award given by an independent tribunal.
This award is related to a dispute with Ogun State over the development and management of the Ogun Guangdong Free Trade Zone. Despite the tribunal’s ruling, the Ogun State government has yet to make the payment, prompting Zhongshan to pursue asset seizures internationally.
The controversy began in 2010 when Ogun State partnered with Zhongshan’s parent company to develop an industrial park within the Free Trade Zone. The agreement was terminated in 2016, leading Zhongshan to seek restitution through international arbitration. The tribunal’s award is now being enforced, targeting assets such as Nigerian presidential jets and a jet linked to former petroleum minister Dan Etete.
The Nigerian government has vowed to safeguard its assets from what it calls “predators,” while Zhongshan has faced challenges in realizing the award. The dispute highlights the significant implications of conflicts between Nigerian subnational governments and foreign investors, potentially affecting national assets globally.
A recent court document revealed Zhongshan is also seeking $130.6 million in compensation for a breach of contract related to the Ogun Guangdong Free Trade Zone. The case, filed in the US District Court for the District of Columbia, claims Nigeria violated the Investment Treaty with China by failing to provide fair treatment, engaging in discrimination, and expropriating investments without compensation.
Zhongshan’s investments included substantial infrastructure development within the park, such as roads, utilities, and services. However, by mid-2016, Ogun State terminated the agreements, leading to further legal and diplomatic conflicts, including allegations of criminal breach of trust and mistreatment of Zhongshan executives.
The ongoing legal battle underscores the complexities and far-reaching effects of international investment disputes, with significant implications for both parties involved.
