Chinese Firm: Nigeria Loses 2 Properties In US, After Loss Of Presidential Jets In France
FG’s case against Chinese firm worsens as US court awards $70m against Nigeria
A United States Court of Appeal has issued a final charging order to Zhongshan Fucheng Industrial Investment Co. Ltd, a Chinese firm, to take over two federal government properties.
The court ordered the enforcement of the $70 million arbitration award against the Ogun state government in favour of the Chinese firm.
The verdict was delivered on Friday, August 9. In the majority judgment, the court affirmed the ruling of the US District Court for the District of Columbia, which maintained that the arbitration award could be enforced.
It was learnt that the development had worsened the federal government’s move to ensure that the crisis did not escalate to other countries in Europe.
Court orders seizure of Nigeria’s presidential jets
A French court has authorized the seizure of three Nigerian presidential jets due to a dispute between Zhongshan and the Ogun State government. The Presidency is aware of the situation and accuses Zhongshan of attempting to take over Nigeria’s offshore assets through subterfuge.
In January 2023, a US court ruled that it has jurisdiction over the case, despite Nigeria’s argument that it is a sovereign entity. The court cited the New York Convention, which the UK has signed, allowing for the enforcement of arbitration awards.
Zhongshan acquired rights to develop a free trade zone in Ogun State in 2010 and established a subsidiary, Zhongfu International Investment, to manage the project. However, in 2016, Zhongshan accused the Ogun state government of attempting to terminate its appointment and install a new manager.
Chinese firm institutes treaty against Nigeria
Zhongshan initiated an investment treaty arbitration against Nigeria, which ruled in favour of Zhongshan and awarded approximately $70 million in compensation. In January 2022, Zhongshan sought enforcement of the arbitration award.
The dispute has led to the seizure of three presidential jets, including a Dassault Falcon 7X, a Boeing 737, and an undelivered Airbus 330. The Nigerian government is working to resolve the issue and prevent further asset seizures.
