Zhongshan Fucheng Industrial Investment Company Limited, a Chinese firm at the center of a contentious contract dispute with Ogun State Government, has accused Nigerian authorities of severe mistreatment towards its senior officials. This, the company claims, was a crucial factor in its decision to seek the seizure of Nigerian assets abroad.
The seized aircraft include a Dassault Falcon 7X and a Boeing 737, part of Nigeria’s presidential fleet. An Airbus 330, also purchased by Nigeria but not yet delivered, was included in the court’s order. The court issued these orders following ex parte motions on March 7 and August 12, 2024.
The dispute began when the Ogun State Government ended its contract with Zhongshan, which managed an export processing zone in Nigeria. Zhongshan claimed this termination was unlawful, prompting an arbitration tribunal to award them approximately $74.5 million in damages.
The Ogun State Government, however, failed to comply with this ruling, leading Zhongshan to pursue enforcement through international legal channels.
Zhongshan alleges that Nigerian authorities mistreated its officials, which significantly influenced their decision to seek international redress. The firm claims that police officers in Nigeria detained and abused its top management, including Chief Financial Officer Mr. Wenxiao Zhao. According to Zhongshan, Zhao was assaulted, threatened, and held in harsh conditions without explanation.
In a statement to the French court, Zhongshan described the mistreatment, stating, “The draconian actions of the Nigerian authorities included the Secretary to the Ogun State Government (Taiwo Adeoluwa) directly threatening Zhongfu Nigeria’s Chief Executive Officer, Dr Jianxin Han, to leave peacefully when there is an opportunity to do so, and avoid forceful removal, complications, and possible prosecution.
“As if this treatment were not appalling enough, the Nigerian authorities followed through on their threats of physical harm to the claimant’s management team in Nigeria. The police arrested the Chief Financial Officer of Zhongfu Nigeria, Mr Wenxiao Zhao, detained him without basis or explanation in terrible conditions, and physically beat him on two occasions before releasing him—without any charge—after a week in two jails.”
Recounting his ordeal in police custody, Zhao said, “One police officer in uniform came over to me and slapped me twice on the face. Then the police officers who brought me there took me to a room where they asked me to sign a piece of paper.
“They did not say or explain what this paper was or what it said. I refused to sign the piece of paper. The police officers then took my flip-flops and placed me in a courtyard with a number of cells surrounding it. It was dark and cold, and I was standing at the gate to one of the cells.
“Another prisoner came out of that cell and asked why I was taken. I did not speak. There were also some other people who had been brought to the courtyard, and the prisoner told us to stand side by side and asked whether we had money and why we were there. If someone had no money, he would slap them.
“Then the prisoner took me aside and asked me to speak. He said that if I did not speak, he would beat me with a club. Later, a second prisoner took me aside and told me not to be afraid. However, the first prisoner came back and threatened me with a club and asked me to speak, which I did not do.
“On what I think was the third day in the Abuja police station, a lot of people were brought into the office. The police officers moved me to another office. The police officer then approached me asking what happened. I did not respond, and he hit me twice, first on the neck and the second time on the head with a fist. It was painful, and I felt numb.
“Fearing for their safety, Zhongfu Nigeria’s management team was forced to leave Nigeria. Zhongfu Nigeria tried to take preventive legal steps in the Nigerian courts to preserve their rights, but the Ogun State Government, NEPZA, and the police orchestrated the complete evisceration of the claimant’s investment in Nigeria.”
