{"id":9117,"date":"2024-08-19T06:17:35","date_gmt":"2024-08-19T06:17:35","guid":{"rendered":"https:\/\/thenewsnow.org\/?p=9117"},"modified":"2024-08-19T06:20:39","modified_gmt":"2024-08-19T06:20:39","slug":"china-nigeria-and-hostage-aircraft","status":"publish","type":"post","link":"https:\/\/thenewsnow.org\/index.php\/2024\/08\/19\/china-nigeria-and-hostage-aircraft\/","title":{"rendered":"China, Nigeria, And Hostage Aircraft"},"content":{"rendered":"

By Dakuku Peterside, PhD.<\/b><\/span><\/a><\/p>\n

Every story has two sides, but when a country\u2019s rep\u00adutation as a sovereign and an investment destination comes under threat, it calls for im\u00admediate concern and action from its citizens and leaders. The recent unfolding of a concerning develop\u00adment has significant implications for Nigeria\u2019s global standing as an investment hub. A Chinese com\u00adpany, Zhongshan Fucheng Indus\u00adtrial Investment Co. Ltd, secured a court order in France following an arbitration award initiated in 2017, with the Ogun State Govern\u00adment over a contractual relation\u00adship that dates to 2010. The arbi\u00adtration panel ruled in favour of Zhongshan, stating that \u201cIt is clear that Zhongshan is the effective win\u00adner in these arbitral proceedings, in that it has proved its version of events is accurate, successfully re\u00adsisted Nigeria\u2019s jurisdictional and preliminary objections, established a valid claim against Nigeria under the Treaty, and obtained an award for substantial damages.\u201d This is not just a legal victory for the Chi\u00adnese firm, but a red flag for Nige\u00adria\u2019s global investment reputation that demands immediate attention and action.<\/p>\n

This ruling is a significant blow to Nigeria\u2019s absolute sovereign sta\u00adtus and the doctrine of sovereign immunity. The order has since been upheld by a US court, which dismissed Nigeria\u2019s sovereign im\u00admunity defence in enforcing the $70 million investment treaty award. The US court was scathing in its judgment, asserting that Nigeria had \u201cgruesomely\u201d violated the Chinese firm\u2019s fundamental and commercial rights. This ruling has led to the dramatic seizure of three Nigerian aircraft in France\u2014air\u00adcraft that belong to the federal gov\u00adernment. The seized jets include a Dassault Falcon 7X, a Boeing 737- 7N6\/BBJ, and an Airbus A330-243, all stationed at Paris-Le Bourget and Basel-Mulhouse airports.<\/p>\n

While initially a dispute be\u00adtween a subnational government and a private firm, this situation has spiralled into a crisis with broader and more severe implica\u00adtions for Nigeria. It raises critical questions about Nigerian subna\u00adtional entities\u2019 conduct and the federal government oversight of international contracts. Can sub\u00adnational entities enter into agree\u00adments guaranteed by sovereign that do not include national assets or support? What level of due dili\u00adgence should subnational govern\u00adments observe before they engage in contractual relationship with foreign firms? More importantly, does this case reflect a more pro\u00adfound, systemic issue within Ni\u00adgeria\u2014a culture that lacks respect for contracts and international agreements?<\/p>\n

The case also casts a spotlight on the perceived weaknesses of Nigeria\u2019s institutions, which need more authority or respect on the global stage.<\/p>\n

This perception is troubling and raises the question: do for\u00adeign investors lack confidence in Nigerian institutions ? These are not rhetorical questions but rather pressing concerns that de\u00admand a thorough investigation and straightforward answers. The implications are dire, as evi\u00addenced by this case, which has re\u00adsulted in public embarrassment for the country and the potential loss of much-needed funds due to poorly negotiated and managed contractual relationship . A thor\u00adough investigation is crucial to restore trust and confidence in Nigeria\u203as international business dealings.<\/p>\n

This situation is not an isolated incident but part of a worrying trend. It calls to mind earlier cases, such as the P&ID arbitration ruling in 2010, where Nigeria was found tardy in a failed gas supply and pro\u00adcessing contract. Though this was reversed but it left a scar . Similar\u00adly, in 2019, a UK court awarded an Irish engineering firm $9.6 billion in damages against Nigeria over a failed gas project. In that case, the firm went so far as to instruct its lawyers to identify Nigerian assets worldwide that could be seized to enforce the arbitration award. These incidents paint a troubling picture of Nigeria\u2019s handling of in\u00adternational contracts and the coun\u00adtry\u2019s reputation on the global stage.<\/p>\n

The ongoing dispute with Zhongshan Fucheng Industri\u00adal Investment Co. Ltd is likely to negatively impact Nigeria\u2019s glob\u00adal standing, especially when the country is desperately trying to attract foreign direct investment. This case highlights the often poor\u00adly structured nature of Nigeria\u2019s international contracts, where subnational governments and even private companies have found ways to entangle the federal gov\u00adernment in their questionable and often poorly thought-out deals. The result is a further tarnishing of Ni\u00adgeria\u2019s already fragile reputation. Following the Dangote saga where there is perception that Nigeria could not treat its own businesses fairly ,this is another blow to Ni\u00adgeria\u2019s global image . The country already suffers from a prevalent negative perception regarding the sanctity of contracts, largely due to inconsistent adherence to contrac\u00adtual obligations. The federal gov\u00adernment\u2019s failures to uphold these commitments, particularly at the subnational level, only exacerbate the problem. This disregard for the sanctity of contracts contributes to a growing cynicism about Nigeria as a reliable destination for invest\u00adment and business. It is crucial to uphold agreements and respect contracts to restore Nigeria\u2019s rep\u00adutation.<\/p>\n

The symbolism of this saga is still visible to us. Beyond the immediate damage to Nigeria\u2019s national reputation, this incident brings broader issues related to leadership, business ethics, and the sacrosanct nature of contracts. It underscores the importance of continuity in government\u2014where all governments inherit their pre\u00addecessors\u2019 assets and liabilities and should not cancel contracts arbitrarily. More\u00adover, this situa\u00adtion highlights the critical need to build solid, responsive, and trustworthy in\u00adstitutions that command re\u00adspect locally and internationally and can handle the complexi\u00adties of interna\u00adtional business contracts. It is an anomaly that contracts involv\u00ading Nigerian subnationals or firms and foreign businesses al\u00adways situate arbitration in foreign lands when local institutions are available and ostensibly capable of fulfilling this role.<\/p>\n

\n
This incident lays bare Nige\u00adria\u2019s leadership challenges and sensitivity to foreign investment disputes. If not resolved diplomat\u00adically and swiftly, such disputes could severely jeopardize Nigeria\u2019s diplomatic relations and economic credibility. I am happy the minis\u00adter of foreign affairs is rising up to the challenge. The needless dispute between a negligent subnational entity and a private firm, which has dragged sovereign assets into the fray, could strain diplomatic ties between Nigeria and China. Recall that the root of this matter is the bilateral investment treaty signed by Nigeria and China in 2001 and since then we have seen progress in trade and investments on both sides. This recent imbro\u00adglio is particularly concerning at a time when the federal government is expending billions of naira to woo foreign investors. The dispute has cast a stark light on the nature of business transactions in Nige\u00adria, revealing the many dangers they pose to investors, especially when projects collapse or are mis\u00admanaged. The potential loss of much-needed funds due to poorly negotiated and managed contrac\u00adtual relationship is a stark remind\u00ader of the economic impact of such disputes.<\/div>\n<\/div>\n

The recurring cases of Chinese companies taking advantage of Ni\u00adgeria\u2019s open business doors are in\u00adcreasingly worrisome. It is imper\u00adative that the federal government, particularly the Office of the At\u00adtorney General, take a closer look at international contracts entered by state governments to insulate sovereign assets from exposure. This situation raises significant constitutional questions: does the federal government have the con\u00adstitutional authority to regulate or even approve contracts entered by subnational entities?<\/p>\n

The ongoing dispute between Zhongshan Fucheng Industrial Investment Co. Ltd and the Ogun State Government, which has now implicated Nigeria\u2019s sover\u00adeign assets, is a stark reminder of the importance of upholding the sanctity of contracts and ensur\u00ading due diligence in international agreements. The federal govern\u00adment must take decisive action to safeguard Nigeria\u2019s reputation as a reliable investment destination. This includes strengthening in\u00adstitutions, enforcing contractual commitments, and resolving dis\u00adputes through diplomatic channels. Please government must address these issues to ensure good dip\u00adlomatic relations and not deter much-needed foreign investment, compromising Nigeria\u2019s economic future.<\/p>\n

The time has come for Nigeria to reassess its approach to inter\u00adnational business dealings. This reassessment must focus on re\u00adstoring confidence among global investors, ensuring that all levels of government adhere to interna\u00adtional best practices, and building institutions that are strong, re\u00adspected, and trusted by domestic and international stakeholders. Nigeria can repair its reputation and safeguard its national interests in an increasingly interconnected global economy by doing so.<\/p>\n

This incident is more than just a legal or diplomatic issue; it is a wake-up call for Nigeria to re\u00adalign its policies, practices, and institutions with global business demands. The country cannot af\u00adford to continue this path of negli\u00adgence, laxity and mismanagement. As this case has shown, the cost is far too high\u2014not just in monetary terms, but in terms of Nigeria\u2019s global standing, credibility, and future prosperity. It is imperative that Nigeria learn from this epi\u00adsode, take corrective action, and ensure that such incidents are not repeated in the future. The nation\u2019s economic future and place in the global community depend on it. As for the foreign business sharks that aim to reap off Nigeria\u2019s through dubious business deals that can\u00adnot hold waters, it is time we iso\u00adlate and deal with them and their Nigerian companions. Convicting some of these criminals will serve as a deterrent to others and help reduce such incidents in Nigeria.<\/p>\n","protected":false},"excerpt":{"rendered":"

By Dakuku Peterside, PhD. Every story has two sides, but when a country\u2019s rep\u00adutation as a sovereign and an investment<\/p>\n","protected":false},"author":1,"featured_media":9118,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-9117","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/thenewsnow.org\/index.php\/wp-json\/wp\/v2\/posts\/9117","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thenewsnow.org\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thenewsnow.org\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thenewsnow.org\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thenewsnow.org\/index.php\/wp-json\/wp\/v2\/comments?post=9117"}],"version-history":[{"count":4,"href":"https:\/\/thenewsnow.org\/index.php\/wp-json\/wp\/v2\/posts\/9117\/revisions"}],"predecessor-version":[{"id":9122,"href":"https:\/\/thenewsnow.org\/index.php\/wp-json\/wp\/v2\/posts\/9117\/revisions\/9122"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thenewsnow.org\/index.php\/wp-json\/wp\/v2\/media\/9118"}],"wp:attachment":[{"href":"https:\/\/thenewsnow.org\/index.php\/wp-json\/wp\/v2\/media?parent=9117"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thenewsnow.org\/index.php\/wp-json\/wp\/v2\/categories?post=9117"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thenewsnow.org\/index.php\/wp-json\/wp\/v2\/tags?post=9117"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}