This call follows the recent seizure of three Nigerian presidential jets by a French court, a consequence of a contract dispute between the Ogun State Government and the Chinese firm Zhongshan Fucheng Industrial Investment Co. Ltd.
The Civil Society Legislative Advocacy Centre (CISLAC) and Transparency International Nigeria (TI-Nigeria) have urged state governors to place a greater emphasis on due diligence and legal consultations during contract negotiations.
This call follows the recent seizure of three Nigerian presidential jets by a French court, a consequence of a contract dispute between the Ogun State Government and the Chinese firm Zhongshan Fucheng Industrial Investment Co. Ltd.
In a statement, CISLAC/TI-Nigeria, represented by Executive Director Auwal Musa Rafsanjani, expressed serious concern over the escalating legal battle originating from a 2007 agreement for the Ogun Free Trade Zone’s development.
Rafsanjani noted that the fallout from the poorly managed contract has led to substantial financial losses and damaged Nigeria’s international standing.
Rafsanjani emphasized that state governors and government officials need to thoroughly understand the legal and ethical implications of international agreements before committing to them.
“Nigeria faces numerous socio-economic challenges; we cannot afford additional burdens from avoidable legal disputes due to inadequate due diligence,” he said.
He also criticized the federal government for permitting state governors to secure loans without adequately addressing potential risks, noting that personal interests often lead public officials into problematic agreements, similar to the well-known P&ID case.
“CISLAC/TI-Nigeria’s call highlights the critical need for vigilance and ethical governance in managing international contracts to avoid severe consequences from mismanagement,” Rafsanjani added.
He recalled the global advocacy efforts of CISLAC and Transparency International since the P&ID arbitration order in 2017, which imposed a $6.6 billion fine on Nigeria for contractual breaches, a sum that later escalated to $11 billion due to accrued interest.
But in July 2024, a Court of Appeal in the United Kingdom (UK) dismissed the appeal of P&ID on a previous judgment halting the enforcement of its $11 billion award against Nigeria.
In a unanimous decision, the Lead Judge, Lord Justice Snowden, permitted P&ID to appeal the judgment but dismissed the appeal.
Rafsanjani noted the collaboration with local and international organizations to demand a thorough investigation into those involved in undermining Nigeria’s interests, criticizing the previous administration’s inaction on these demands.
CISLAC reiterates its call for President Bola Tinubu and anti-corruption agencies to prosecute all Nigerians and their accomplices, including former senior officials, involved in colluding with P&ID for personal gain.
CISLAC/TI-Nigeria’s statement underscores broader concerns regarding Nigeria’s handling of international agreements and the severe repercussions of neglecting due diligence.
“As Nigeria navigates this complex legal situation, it is essential to uphold vigilance and ethical governance in contract negotiations,” Rafsanjani concluded.
Follow the Sahara Reporters channel on WhatsApp: https://whatsapp.com/channel/0029VaFClvtH5JM6SSsP7M2Y