• Nigeria should act swiftly to protect assets, says Aina-Scott
• We need proactiveness in responding to processes – Atake
• Odion decries lack of integrity, accountability by govt officials
Experts have stressed the importance of a diplomatic approach in international dealings as Nigeria seeks a solution to the seizure of its sovereign assets by a Chinese firm.
Managing partner, Scott’s Legal, Titi Aina-Scott, said the situation showed the urgent need for Nigeria to act swiftly to protect its assets.
To forestall further escalation, she suggested that Nigeria could pursue a multifaceted approach such as diplomacy, legal action, negotiations and arbitrary review.
Explaining that Nigeria could engage the United Kingdom (UK) to challenge the legality of the seizure, exploring every applicable diplomatic protection, Aina-Scott stated that an urgent legal proceeding could be initiated in the UK to seek a stay of execution.
“The nation can consider negotiating with the Chinese firm to halt the sale while exploring a permanent resolution. They can also review the arbitration award for any procedural flaws that could justify an appeal or stay of execution. These multi-pronged strategies could be vital to reclaim Nigeria’s assets and prevent further losses,” she added.
For Senior Partner, LawChest, Chijioke Ifediora, international law is clear on the sanctity of contract, “pacta sunt servanda” a term coined from the ancient Latin term meaning “agreements must be kept”.
According to him, some of the questions that need clarification from the former Governor of Ogun State is, at the time of terminating the contract did Zhongshang Fucheng International Investment renege in any manner the terms of the contract?
“The former governor did not raise any allegation of fraud, whereby one can ordinarily presume Zhongfu had breached the ‘bona fide’ clause implicit in contractual relations.
He expressed worry over the judgment by the United States District Court for the District of Columbia in Washington, stating that “Nigeria as a sovereign state enjoys sovereign immunity, which extends to its assets and the targeted assets though Nigerians, does not belong to Ogun State. Nigeria did not enter into any contract with Zhongfu.
“Ogun is a legal person capable of suing and being sued. As a matter of fact, assets of Ogun should be the target of Zhongfu and not that of Nigeria.”
Partner and Head, Dispute Resolution, Templars, Adewale Atake (SAN), said what is required to forestall the seizures is a fundamental change in mindset and orientation.
He stated that Nigerian public servants at both the federal and state levels must be made to fully appreciate the concept of sacrosanctity of contracts.
Atake stated, “They must be extremely careful before entering into contracts and must understand that once a contract is entered into, it cannot be departed from without consequences, which as we have seen can prove very costly.
“We must also learn to put our best foot forward when it comes to defending the interests of Nigeria in these claims, and above all, Nigeria has to stop being reactive and become proactive in responding to processes and documents served on her, especially in international proceedings.”
Professor of Political Science, Lagos State University (LASU), Sylvester Odion, said the lack of integrity in business transactions in the country brought Nigeria to this point, adding that the case brought to light the absence of transparency and irresponsibility of state officials.
He urged Nigeria to seek a diplomatic way out, given that the country has a good relationship with China.
Yesterday, Zhongfu, the Chinese firm involved in a legal face-off with Nigeria over an alleged contract breach by the Ogun government, concluded plans to list two Nigerian residential structures in Liverpool for sale on the global online marketplace, e-Bay.
It remained dogged on recovering its money from its business counterpart in Nigeria, as it races to recover up to $70 million in arbitration awards.
The firm took possession of two buildings linked to the Nigerian government in Liverpool, United Kingdom, in June 2024, years after Nigeria failed to reach an agreement over an arbitration judgment handed down in 2021.
The properties, 15, Aigburth Hall Road, Liverpool and Beech Lodge, 49, Calderstones Road, Liverpool, were targeted after a December 2021 British court order gave Zhongfu executives the authority to confiscate Nigerian assets in the UK to recover the $70 million payment, which remained outstanding as of August 20, 2024, with two per cent monthly interest accruals.
The firm, through a French court order, has previously seized three presidential jets, including a Dassault Falcon 7X, presently in Paris, and a Boeing 737 and Airbus A330, undergoing maintenance in Switzerland. The total value of the seized aircraft exceeds $100 million.
One of the jets, an A330, was later released to Nigeria on Friday.
