BREAKING: Chinese Company to Seize Nigerian Assets in 9 Countries, Including US, UK

Zhongshan Fucheng Industrial Investment Co. Limited, a Chinese company that recently secured a court injunction to ground three Nigerian presidential jets in Europe, has initiated plans to seize additional Nigerian assets in the United Kingdom, the United States, and six other countries.

According to documents obtained on Thursday, the company has instituted legal proceedings in eight jurisdictions globally, including Belgium, Canada, France, Singapore, and the British Virgin Islands, in connection with an ongoing dispute.

This development follows a French court’s authorization to seize three Nigerian presidential aircraft—two of which were recently put up for sale and a third, an Airbus 330, yet to be delivered—over a $74.5 million compensation dispute involving the Ogun State Government.

The dispute dates back to 2001, when Nigeria and China signed a bilateral investment treaty to promote commercial investment. In 2007, Ogun State entered a joint venture with Chinese and other firms to create the Ogun Guangdong Free Trade Zone (OGFTZ). However, in 2016, the agreement was terminated, leading Zhongshan to file lawsuits in Nigerian courts. Although these legal actions were discontinued in 2018, the company continued to pursue its claims internationally.

In a recent ruling, an independent arbitral tribunal chaired by a former UK Supreme Court president awarded Zhongshan $74.5 million in compensation. The court also prohibited Nigeria from moving or selling the presidential jets until the compensation is paid.

In a related development, Zhongshan attempted to seize a private jet recovered by the Nigerian government from former petroleum minister Dan Etete, who allegedly purchased the jet with proceeds from the $1.3 billion Malabu OPL245 oil deal.

Zhongshan claims that its original role was to develop and manage the Fucheng Industrial Park within the OGFTZ. However, the Ogun State Government canceled the contract after receiving allegations that Guangdong Province, not Zhongshan, was the rightful entity to manage the zone.

Zhongshan has since been seeking to enforce the tribunal’s award, with ongoing legal proceedings in multiple jurisdictions. However, the company has yet to recover any funds.

Meanwhile, a court document reveals that Zhongshan is demanding $130.6 million in compensation, citing breach of contract and Nigeria’s alleged failure to provide fair treatment under the Investment Treaty with China.

Reacting to the situation, the Federal Government, represented by Attorney General Lateef Fagbemi, has initiated legal and diplomatic efforts to recover the seized aircraft. In a statement, the government emphasized that the aircraft are sovereign assets protected by diplomatic immunity and should not be subject to foreign court orders.

The Ogun State Government also condemned the judicial process that led to the seizure, describing it as a “fraudulent attempt” by Zhongshan to appropriate Nigerian assets. The state government maintains that the arbitration award was unjust and has successfully resisted its enforcement in multiple jurisdictions.

The Presidency echoed these sentiments, accusing Zhongshan of misleading the French court and reiterating that the jets are immune from attachment under international law. The Presidency also highlighted that the underlying dispute is between the Ogun State Government and Zhongshan, not the Federal Government of Nigeria.