NIGERIA: Former Governor Ibikunle Amosun has admitted to mistakenly signing away the Ogun Free Trade Zone to questionable Chinese investors, sparking legal battles that threaten Nigeria’s assets internationally.
He urges caution in ongoing negotiations and likens the situation to Nigeria’s P&ID case.
Amosun confessed to being deceived into handing over control of the multi-billion naira Ogun Free Trade Zone to a dubious Chinese investment group, a decision that has now sparked a legal crisis with far-reaching implications, reports AFNews.
In a statement released on Saturday, Amosun detailed how he unknowingly allowed Zhongfu International Investment Ltd to take over the trade zone in 2012, leading to a protracted legal battle that threatens Nigeria’s assets abroad.
The Ogun Free Trade Zone, conceived in 2007 under the administration of Governor Gbenga Daniel, was a joint venture between Ogun State and Guangdong Xinguang International China Africa Investment Ltd (China Africa). With China Africa holding a 60% stake in the 10,000-hectare facility, it was seen as a significant step toward boosting Nigeria-China trade relations.
However, in 2012, a year after Amosun assumed office, Zhongfu International approached his administration with claims that the zone was being mismanaged by China Africa. Without conducting a thorough investigation, Amosun admitted to appointing Zhongfu as interim managers of the facility.
In his statement, Amosun explained, “Zhongfu International pretended to be a concerned stakeholder and provided damaging information against China Africa. Based on the information at the time, they were appointed as interim zone managers on March 15, 2012, pending further evaluation.”
Amosun further revealed that it was later discovered that the information provided by Zhongfu was false, aimed at undermining China Africa and taking control of the state-owned assets. The former governor noted that the Chinese government directly intervened, informing him that the company he had ousted was the rightful owner of the investment.
The legal battle has since escalated, with Zhongfu International pursuing enforcement of compensation judgments in various countries. Most recently, a judicial panel in the United States authorized Zhongshan, Zhongfu’s parent company, to proceed with efforts to seize Nigeria’s assets. Zhongshan had obtained a $60 million compensation judgment in the UK in 2021, which it is now attempting to enforce in France, the U.S., and other countries.
Amosun urged both the federal and state governments to resist any attempts to reach a settlement with Zhongfu, drawing parallels to Nigeria’s previous experience with the P&ID case. He emphasized that any resolution in favor of Zhongfu would be detrimental to Nigeria’s interests.
