Former Ogun State Governor, Ibikunle Amosun, has come forward to explain why his administration terminated a Chinese firm’s contract, which has now caused Nigeria’s presidential jets to be seized. This situation has raised concerns, as the international dispute stems from actions taken during Amosun’s tenure.
Amosun, who governed Ogun from 2011 to 2019, stated that his government’s decision was based on a conflict between two Chinese companies. He said the dispute was over control of the Ogun Guangdong Free Trade Zone (OGFTZ). The two companies involved were Zhongfu International Investment FXE and China Africa Investment FXE.
The dispute, according to Amosun, started when both companies laid claims to management rights over the trade zone. Amosun said the situation escalated quickly, threatening peace and security in the surrounding communities. As a result, his administration had to intervene to prevent further chaos.
“There were claims and counterclaims as to who between the two was the lawful representative of the original joint venturer, Guangdong Province, China, and consequently who had the right to manage the Zone,” Amosun explained.
Initially, his administration appointed Zhongfu International as Interim Zone Managers based on information provided by the company, which Amosun later discovered to be misleading. Zhongfu had presented damaging information about their rival, China Africa Investment FXE, leading the government to take action.
Amosun revealed that, after further investigation, the Ogun government found out that the information supplied by Zhongfu was false. The company, he claimed, had ulterior motives to seize control of the zone. “Unknown to Ogun Government at the time, Zhongfu International Investment FXE merely sought to de-market China Africa Investment FXE,” Amosun said.
The Chinese government later confirmed that China Africa Investment FXE was the rightful investor. After consulting with the State Security Services and the Nigerian Export Processing Zones Authority (NEPZA), the Ogun government issued Zhongfu International a termination notice in May 2016.
Amosun acknowledged that this action led to legal battles, but his administration successfully defended its decision before leaving office in May 2019. He advised the federal government not to give in to Zhongfu International’s demands and expressed concern that a business dispute between two Chinese firms had now affected Nigeria’s sovereign assets.
Meanwhile, Nigeria’s Foreign Affairs Minister, Yusuf Tuggar, responded to the situation by urging state governments to avoid entering into international agreements without consulting the federal government. He pointed out that such actions could leave the federal government exposed to lawsuits and other complications.
Tuggar assured the public that both his ministry and the Attorney General of the Federation were working to resolve the issue through legal and diplomatic channels. He also emphasized the need for proper protocol in international dealings to avoid such incidents in the future.
The root of the dispute dates back to 2010, when Ogun State signed a contract with Zhongshan Fucheng Industrial Investment Co. Ltd to develop the free trade zone. However, the contract was terminated in 2016, leading Zhongshan to initiate arbitration proceedings against Nigeria. An arbitral tribunal eventually awarded the company a substantial sum of money, which has now led to the seizure of Nigerian assets in France and the UK.
