I Mistakenly Signed Multibillion-Naira Trade Zone Deal with Dubious Chinese Investors – Amosun

Former Governor Ibikunle Amosun of Ogun State has revealed that he was deceived into transferring control of a multibillion-naira free trade zone to questionable Chinese investors, adding a troubling layer to the ongoing legal battle threatening Nigeria’s assets abroad.

Amosun, who served as governor from 2011 to 2019, admitted in a personal statement that he did not conduct a thorough investigation before authorizing a Chinese investment group to take over the Ogun-Guandong Free Trade Zone in 2012. His decision has since escalated into a prolonged legal conflict, with disgruntled Chinese investors now seeking to target Nigeria’s assets in Europe and the United States.

The Ogun-Guandong Free Trade Zone was initially established in 2007 under the administration of former Governor Gbenga Daniel, in partnership with Guangdong Xinguang International China Africa Investment Ltd (China Africa). China Africa, holding a 60% stake in the 10,000-hectare facility in Igbesa, Ogun State, had been developing the zone until another firm, Zhongfu International Investment Ltd, approached the newly elected Amosun administration in 2012. The firm alleged mismanagement of the zone and requested to take over its management.

In his statement, Amosun recounted how he allowed Zhongfu to manage the zone on an interim basis while his administration investigated the claims.

“Zhongfu International Investment FXE, pretending to be a concerned and genuine tenant and Zone stakeholder, provided damaging and false information about China Africa Investment FXE, the official representatives of Guangdong Province and lawful Zone Managers. They subsequently requested to be appointed as Interim Zone Managers,” Amosun explained.

“Based on the information available at the time, Zhongfu International Investment FXE was appointed interim zone manager on March 15, 2012, pending further evaluation. The idea was to ensure that someone was in charge to prevent any detrimental developments in the zone while we completed our fact-finding exercise.”

Amosun said it was later uncovered that the allegations made by Zhongfu were baseless. He claimed the company’s true intent was to discredit China Africa and covertly take over state-owned assets of Guangdong Province and the management rights of their rival.

Chinese authorities reportedly intervened in the matter through diplomatic channels, with Amosun noting, “It was further discovered – much later – through the intervention of the Chinese Government via Diplomatic Note 1601, dated March 11, 2016, that the company I had terminated was the rightful owner of the investment.”

After Amosun’s administration removed Zhongfu from the zone, the company initiated several legal actions in Nigerian courts but reportedly lost all four cases. However, Amosun did not provide details of the cases.

The former governor urged the federal government and Ogun State to refrain from engaging in any settlement with Zhongfu.

“Nigeria should not entertain Zhongfu International Investment FXE as doing so would amount to indulging and encouraging an unlawful entity without the legal standing to appropriate our common patrimony,” Amosun concluded.