Federal Government Criticizes Ogun State’s Deal with Chinese Firm Over Seized Jets

• The Federal Government expresses concerns over Ogun State’s agreement with Zhongshan Fucheng, leading to a court ruling allowing seizure of Nigerian jets
• Foreign Affairs Minister Tuggar criticizes the state’s handling of the agreement, emphasizing the need for federal involvement in such negotiations

The Federal Government has expressed concerns over Ogun State’s agreement with Zhongshan Fucheng Industrial Investment, a Chinese company. This agreement has led to a court ruling that allows the firm to use Nigerian jets at Paris-Le Bourget and Basel-Mulhouse airports as collateral for a claim of EUR 74,459,221.

A US appeal court has also determined that Nigeria’s claim to sovereign immunity does not apply in this commercial context.

Foreign Affairs Minister Yusuf Tuggar, from Malabo International Airport in Equatorial Guinea, stated that the federal government is taking steps to resolve the situation. He noted that his ministry, in collaboration with the Attorney-General of the Federation and Minister of Justice, is working on diplomatic and legal solutions.

Tuggar criticized Ogun State’s handling of the agreement, saying, “This situation highlights the problems that arise when state governments enter into international agreements without consulting the Ministry of Foreign Affairs or the federal government. When issues arise, we are left to address the fallout.”

He emphasized the importance of involving the federal government and relevant authorities in such international negotiations to prevent similar issues in the future. Tuggar clarified that the agreement in question was made by a previous administration in Ogun State, of which the current government was unaware.

In addition, Tuggar praised President Bola Tinubu’s recent three-day state visit to Equatorial Guinea, calling it a success. The visit resulted in significant agreements, including a gas treaty under which Nigeria will supply gas to Equatorial Guinea’s liquefied natural gas plant. This will involve constructing a 150-kilometer pipeline to facilitate the gas transfer from Nigeria’s untapped resources off the coast of Calabar and Akwa Ibom.