Following a recent ruling by the British Virgin Islands High Court that authorised a Chinese business, Zhongshan Fucheng Industrial Investment Co. Ltd, to seize $25 million from Nigeria’s overseas assets, the federal government has vowed to challenge the decision.
“This is not a judgment that will be enforced immediately.
“The ruling serves as a warning, and until Nigeria has the opportunity to enter its defence, the judgment cannot be enforced. We still have the chance to appeal and vacate the ruling,” Special Adviser to the President on Policy Communications, Daniel Bwala, said.
Bwala stressed that “the Presidency remains committed to defending Nigeria’s interests. We will continue to examine all options and take the necessary steps to address these legal challenges, ensuring that Nigeria’s rights and assets are preserved.”
A failed trade zone deal with Ogun State under the previous Governor Ibikunle Amosun’s administration prompted the corporation to seek redress.
A 2010 agreement in which Zhongshan obtained the right to establish a free trade zone in Ogun State is the source of the conflict.
Zhongshan, however, started an investment treaty arbitration under the bilateral investment treaty between China and Nigeria when the Ogun State government ended the project in 2016. The arbitration panel decided in Zhongshan’s favour, awarding the business a settlement of almost $70 million. Nigeria claimed state immunity, but the UK courts dismissed this argument.
