The Ogun State government has been fined $70 million by a U.S. Court of Appeal in an arbitration case involving Zhongshan Fucheng Industrial Investment Co. Ltd, a Chinese firm. The court ordered that two properties in the U.S. owned by the Nigerian government be forfeited to the Chinese company as part of the judgment.
This ruling follows a previous decision by the U.S. District Court for the District of Columbia, which affirmed the enforcement of the arbitration award in favor of Zhongshan.
The dispute stems from a 2010 agreement where Zhongshan was given rights to develop a free trade zone in Ogun State. In 2016, the Chinese firm accused the Ogun State government of attempting to terminate the agreement and replace Zhongshan with a new management. As a result, Zhongshan pursued an arbitration case, which ultimately led to the $70 million award.
Additionally, a French court has authorized the seizure of three Nigerian presidential jets due to this ongoing dispute. The Nigerian government is now working to prevent further seizures of its assets abroad.