The escalating legal confrontation between Nigeria and Zhongshan Fucheng Industrial Investment Ltd, a Chinese firm, has turned a new leaf, as Zhongshan confiscates another luxury jet owned by Nigeria in Canada. This move is part of a broader campaign by Zhongshan to recover assets as compensation for an unresolved arbitration award. The dispute, which stems from a failed investment deal, has seen Nigeria’s assets being seized across multiple countries, with the potential for further losses looming on the horizon.
The conflict between Nigeria and Zhongshan Fucheng Industrial Investment Ltd originates from a botched free trade zone contract in Ogun State. The Chinese company had entered into an agreement with the Nigerian government to develop the Ogun-Guangdong Free Trade Zone, a project that promised significant economic benefits for both parties. Tekedia Mini-MBA edition 15 ( Sept 9 – Dec 7, 2024) has started registrations; register today for early bird discounts.
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Zhongshan, feeling aggrieved by what it perceived as Nigeria’s failure to honor its commitments, took the matter to international arbitration. The arbitration panel ruled in favor of Zhongshan, awarding the company over $70 million in damages. But Nigeria has consistently con.