Ibikunle Amosun, who served as Ogun State Governor from 2011 to 2019, has defended his decision to terminate a contract with a Chinese firm, which has now led to a contentious situation for Nigeria.
Amosun clarified that his administration’s action was prompted by a dispute between two Chinese firms over control of the Ogun Guangdong Free Trade Zone (OGFTZ).
His defense comes a day after Minister of Foreign Affairs Yusuf Tuggar warned state governments to consult with the federal government before entering into international agreements.
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The conflict has escalated, with Zhongshan Fucheng Industrial Investment Co Limited securing a French court order to seize three of Nigeria’s presidential jets after the Ogun State Government allegedly breached a contract in 2016.
Although the firm has agreed to release one of the jets, it is still holding onto the other two and some Nigerian assets based on additional court orders from Britain.
In his first public response to the controversy, Amosun stated that his government’s intervention was necessary due to the escalating dispute between Zhongfu International Investment FXE and China Africa Investment FXE.
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He explained that upon taking office in 2011, both Chinese companies claimed management rights over the OGFTZ. The intensifying rivalry between the firms soon posed a threat to public peace and safety within the zone and surrounding communities.
“There were claims and counter claims as to who between the two was the lawful representative of the original joint venturer, Guangdong Province, China and consequentially who had the right to manage the Zone,” he said.
The former governor explained that Zhongfu International was appointed as Interim Zone Managers after providing damaging information about China Africa Investment FXE.
“Zhongfu International Investment FXE, pretending to be a concerned and genuine tenant and zone stakeholder, volunteered very damaging and destructive information about the official representatives of Guangdong Province, the Joint Venturer and lawful Zone Managers, China Africa Investment FXE and subsequently requested to be appointed as Interim Zone Managers.
“Based on the information at the disposal of the Government at the time, Zhongfu International Investment FXE was on 15/03/2012 appointed as Interim Zone Manager pending further evaluation. The whole idea was to ensure that someone was in charge and thereby prevent unwholesome and untoward development in the zone pending the completion of our fact-finding exercise,” he stated.
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Mr Amosun said his government later discovered “that the information and claims by Zhongfu International Investment FXE against China Africa Investment FXE were tissues of lies.”
“Unknown to Ogun Government at the time, Zhongfu International Investment FXE merely sought to de-market China Africa Investment FXE and to surreptitiously covert the state-owned assets of Guangdong Province in China together with the zone ownership and management rights of their business rival,” he added.
He stated that the Chinese government, through Diplomatic Note 1601 dated March 11, 2016, informed the Ogun State Government that China Africa Investment FXE was the rightful investor.
Following consultations with the State Security Services and NEPZA, the Ogun government issued a formal termination notice to Zhongfu International on May 27, 2016.
The former governor noted that this decision led to numerous litigations and petitions.
“We successfully defended our actions at all levels before these organs of government, and they all agreed with our position. Shortly after, our administration left office in May 2019,” Amosun stated.
He urged the federal government not to give in to the demands of Zhongfu International, adding that “it is concerning that a purely business dispute between two Chinese nationals and corporations have now degenerated into an unlawful attempt to appropriate Nigeria’s sovereign assets.”
