By Korede Abdullah
The ongoing diplomatic row between China and Nigeria has further revealed the sordid underbelly of the country’s miasma of corruption. The genesis of the whole story is that, in 2010, Ogun State, a constituent unit within the federation of Nigeria, voluntarily entered into a multi-million dollars contractual agreement with a Chinese company, Zhongshan, to develop an industrial park within the free-trade zone.
Based on information I gathered, four years later, 2016 precisely, the agreement between both parties was terminated at the instance of Ogun State, leading to the Chinese firm filing lawsuits in Nigerian federal and state courts seeking reinstatement of its contractual rights but the legal proceedings were discontinued in 2018.
Not satisfied, the Chinese firm went ahead to approach a French court which recently granted authorization for the seizure of three Nigerian presidential jets to compensate it for the breach of the contract. Two of the jets, a Dassault Falcon 7X and a Boeing 737, are part of Nigeria’s presidential air fleet that were recently listed for sale. The third jet, an Airbus 330, was newly purchased by Nigeria but has not yet been delivered.
The Chinese firm, had previously taken Ogun to court, resulting in a United Kingdom arbitration tribunal awarding Zhongshan $74.5 million in compensation, which Ogun has yet to pay. A court order has now been issued, prohibiting Nigeria from selling or moving its presidential jets until Ogun settles the debt.
It is interesting to note that the Nigerian government has acknowledged the fact that consequential enforcement actions are being directed against the Federal Government and its assets in line with extant principles of international law, which holds that the actions of a subnational or local entity are attributable to the state or country itself.
Curiously, in the midst of this diplomatic cul-de-sac and various legal actions against the country in different jurisdictions, the only canopy under which the Nigerian government is hiding to be on a saver side and to retrieve the three appropriated presidential jets in the Ogun Free Trade Zone deal with the Chinese firm is diplomatic immunity. It will be a monumental huge financial burden if the pendulum of the legal hurdles swings against Nigeria.
Finally, I hold that for Ogun State to have suddenly made a U-turn and reneged on the contract it willingly entered into with the Chinese firm speaks volumes of the level of pervasive corruption in the country.
Has anyone been held accountable for what led to the flop of such a big contract? What later became of the millions of dollars belonging to the taxpayers which were sank into it? With the Chinese involvement, the Ogun State Government and by extension, Nigeria have bitten off more than they can chew.
*Abdullah, a staff of Africa Health Report writes this comment from Lagos.
