On August 17, 2024, the Zhongshan Fucheng Industrial Investment Company Limited, a Chinese firm, alleged that its top executives were unlawfully detained and mistreated by Nigerian police during a contractual dispute with the Ogun State Government. The company claims these actions have driven it to pursue the seizure of Nigerian assets abroad.
The conflict stems from a recent French court decision ordering the seizure of three Nigerian presidential jets. The jets—a Dassault Falcon 7X, a Boeing 737, and an Airbus A330—were seized as part of a legal dispute following the termination of a contract between Zhongshan and the Nigerian government. The court’s orders were issued on March 7 and August 12, 2024, in response to the arbitration tribunal’s $74.5 million award to Zhongshan, which Nigeria reportedly failed to honor.
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The Chinese firm has accused the Ogun State Government of using police force to intimidate and physically assault its employees after revoking a contract related to an export processing zone. Zhongshan alleges that its CFO, Wenxiao Zhao, was particularly targeted. Zhao reportedly faced physical abuse and poor conditions while in police custody.
Zhongshan’s grievance extended to a significant financial loss, with the company claiming $1.078 billion in damages due to the contract termination. The alleged abuse and threats from Ogun State officials, including specific incidents involving physical assault and verbal intimidation, were detailed in Zhongshan’s claims to the French court.
In response, Ogun State officials have denied involvement, stating they have no knowledge of the claims, while the Ogun State Police have distanced themselves from the allegations. The Ogun State Government has expressed a commitment to prevent any fraudulent activities affecting its reputation.
Former Nigerian ambassador Yemi Farounbi criticized the situation as a diplomatic failure, emphasizing the need for careful review of international agreements to prevent such disputes.
In a gesture of goodwill, Zhongshan has reportedly lifted the seizure order for one of the jets, an Airbus A330, to facilitate Nigerian President Bola Tinubu’s scheduled meeting with French President Emmanuel Macron.
This case highlights the complex nature of international contracts and the implications for diplomatic relations, highlighting the need for transparent and fair resolution of contractual disputes.
