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The federal government has announced plans to challenge a British Virgin Islands High Court ruling which allows a Chinese company, Zhongshan Fucheng Industrial Investment Co. Ltd to seize $25 million from the country’s foreign assets.
The judgment bordered on a dispute over a terminated trade zone agreement in Ogun State, signed during the administration of former Governor Ibikunle Amosun.
Special Adviser to the President on Policy Communications, Daniel Bwala said, “this is not a judgment that will be enforced immediately.
“The ruling serves as a warning, and until Nigeria has the opportunity to enter its defense, the judgment cannot be enforced. We still have the chance to appeal and vacate the ruling,” he added.
The case dates back to a 2010 agreement granting Zhongshan the rights to develop a free trade zone in Ogun State.
The project was however cancelled in 2016 by the state government, prompting the company to seek arbitration under a bilateral investment treaty between China and Nigeria.
The arbitration tribunal ruled in Zhongshan’s favour, awarding approximately $70 million in compensation. Nigeria’s attempt to claim state immunity was later dismissed by UK courts.
Bwala insisted that the government remains committed to defending Nigeria’s interests.
“The Presidency remains committed to defending Nigeria’s interests.
“We will continue to examine all options and take the necessary steps to address these legal challenges, ensuring that Nigeria’s rights and assets are preserved,” he said.
