By Adeleke Ademola (IT Student, Westland University)
In Abuja, the Presidency has taken decisive action against Zhongshan Fucheng Industrial Investment Company, a Chinese firm, following the seizure of three presidential jets under a Paris court order. The Nigerian government, along with Ogun State, is challenging this order, viewing it as an attempt to strip Nigeria of its assets.
The federal and Ogun State governments are urgently working to overturn the court orders secured by Zhongshan on March 7, 2024, and August 12, 2024, in hopes of recovering the aircraft.
This situation recalls the case of Process and Industrial Development Limited (P&ID), where a London court granted an $11 billion judgment against Nigeria, which the Federal Government later succeeded in vacating.
Background on the Zhongshan Fucheng Case
In 2007, Ogun State entered into an agreement with Zhongshan to manage a free-trade zone. However, disagreements emerged in 2015, leading to arbitration in 2016.
By 2019, the arbitration concluded with the panel ruling in favor of Zhongshan and awarding over $60 million against the Federal Government of Nigeria, which was a co-defendant.
This ruling came despite Zhongshan’s involvement being limited to constructing a perimeter fence around the trade zone.
Ogun State, upon receiving legal advice, decided to oppose the enforcement of this judgment. This opposition reportedly succeeded in eight different jurisdictions, with ongoing appeals against recognition orders in the US and UK.
