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Chinese Company Responds to FG Claims Over Seized Three Presidential Jets

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Zhongshan, a Chinese company whose contract to manage an export processing zone in Ogun State was revoked in 2016, has expressed its readiness to settle its longstanding dispute with the Nigerian government.

In a statement released on Thursday, Zhongshan reiterated its commitment to resolving the matter amicably, stating, “Zhongshan has always sought to assert its rights under international law and is confident in its case. The independent arbitral panel unanimously ruled in our favor, and courts in multiple countries have upheld the compensation awarded by the panel. The French court made its decision fully aware of the facts.”

The company highlighted the significance of the Ogun Free Trade Zone as an important international investment, noting that it had been featured by the Economist Intelligence Unit.

“Zhongshan has long been ready to engage in serious negotiations with the Nigerian federal government to settle this case and is still awaiting a clear indication that the government is equally willing,” the statement added.

This statement follows reports that a French court authorized the seizure of three presidential jets linked to the Nigerian government. The court order, which prohibits the movement, sale, or purchase of the jets until Zhongshan receives a $74.5 million award, has been enforced by bailiffs.

In response, Bayo Onanuga, Special Adviser to the President on Information and Strategy, criticized the court’s order, describing it as an “arm-twisting tactic” by Zhongshan. Onanuga emphasized that the Nigerian government and Ogun State had made several efforts to resolve the dispute, but claimed that Zhongshan had “withheld vital information and misled” the French court in Paris.

He further stated, “The use and nature of the Presidential jets as assets of a sovereign entity, which are protected by diplomatic immunity, forbid any foreign court from issuing an order against them.”

Background of the Dispute

The conflict between the Ogun State government and Zhongshan dates back to 2010 when Zhuhai Zhongfu Industrial Group Co Ltd, Zhongshan’s parent company, and the Ogun Guangdong Free Trade Zone (OGFTZ) entered into an agreement to establish Fucheng Industrial Park within the zone. The agreement granted Zhuhan the right to develop and manage the park.

In 2011, the Nigeria Export Processing Zones Authority registered Zhongfu International Investment (NIG) FZE, a subsidiary of Zhongshan, as a free trade zone enterprise within the OGFTZ. Zhongfu was later appointed as the interim manager of the zone by the Ogun State government.

However, in July 2016, Zhongfu alleged that the Ogun State government moved to terminate its appointment and replace it with another manager. This led Zhongfu to initiate an investment treaty arbitration against Nigeria, citing the bilateral investment treaty between China and Nigeria.

On March 26, 2021, an arbitral tribunal awarded Zhongshan $55.7 million, with an additional $9.4 million in interest and £2.86 million in costs, to be paid by Nigeria. Despite repeated pleas from the federal government for an amicable resolution, the Ogun State government and Zhongshan have yet to reach a settlement.
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