The United States Supreme Court is set to review Nigeria's petition against Chinese investors Zhongshan Fucheng Ltd on January 10, 2025.
This legal battle stems from a failed free trade zone agreement in Ogun State, which has been a point of contention since its inception.
The origins of this dispute can be traced back to a bilateral investment treaty signed between Nigeria and China in 2001.
Subsequently, in 2007, Ogun State entered into a joint venture with a Chinese company to establish the Ogun Guangdong Free Trade Zone Company. The Nigeria Export Processing Zones Authority delegated control of this zone to the company, aiming to foster industrial development.
However, the agreement took a turn in 2010 when Zhongshan's parent company was contracted to develop an industrial park within the zone.
By 2016, the agreement was terminated, leading Zhongshan to pursue legal action in Nigerian courts. Despite these efforts, the proceedings were discontinued by 2018.
In a dramatic twist, an independent arbitral tribunal chaired by a former UK Supreme Court President awarded Zhongshan $74.5 million in compensation.
This decision has been met with resistance from the Nigerian government, which has yet to fulfill the payment obligations.
Governor Dapo Abiodun of Ogun State expressed his disapproval, stating, "This is the latest in a series of ill-advised attempts by Zhongshan to attach Nigerian-owned assets in foreign jurisdictions."
He further criticized the actions of Zhongshan as "unscrupulous," likening them to previous cases where foreign entities sought to exploit Nigerian resources.
The stakes are high as Nigeria, under President Bola Tinubu, seeks a writ of certiorari from the US Supreme Court to potentially overturn the lower court rulings.
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