Zhongshan Fucheng Industrial Investment Co. Ltd, the Chinese firm in a dispute with the Nigerian government, has responded to recent claims made by Nigerian officials. The company said it is open to settling the issue and has been waiting for the Nigerian government to show willingness to negotiate.
The dispute intensified after a French court authorized the seizure of three Nigerian presidential jets, preventing their movement or sale until Zhongshan receives $74.5 million in compensation.
Zhongshan emphasized that it is only asserting its rights under international law and remains confident in its case. The company noted that an independent arbitral panel had ruled in its favor, and courts in various countries have supported the enforcement of the compensation award. Zhongshan also highlighted that the Ogun Free Trade Zone, which was central to the dispute, was recognized as a major international investment.
In response, Bayo Onanuga, the Special Adviser to the President on Information and Strategy, criticized the French court’s decision, claiming it resulted from Zhongshan’s misleading tactics. Onanuga argued that the jets, as sovereign assets, should be protected from foreign court orders.
The conflict dates back to 2016 when the Ogun State government canceled Zhongshan’s contract to manage an export processing zone. Zhongshan then initiated an investment treaty arbitration under the bilateral investment treaty between China and Nigeria, leading to a final award of $55,675,000 plus interest and costs in March 2021.