Nigeria and the Chinese problem from Ogun State

by

By Reuben Abati

“I hear the people of Ogun State have put the people of Nigeria in serious trouble with the Chinese.”

“You did not hear anything. The story is out there and it is so loud that even the deaf can hear that there is a Chinese problem in Nigeria right now. And just to correct your statement, it is not the people of Ogun State. It is the government of Ogun State. There is a difference.”

“I don’t see any difference. Government acts on behalf of the people.”

“Not true. Oftentimes, the government acts in the selfish interest of the people that are in charge at any particular time. Policies are sometimes made, actions are taken simply to settle personal scores, and the people end up being the victims. Now everybody is saying that the people of Ogun State should be careful how they go about calling their State the gateway to Nigeria. The people themselves are victims.”

“Come to think of it. The idea of an Economic Free Zone would have made the State truly the Gateway in terms of opportunities. It is sad that the Ogun State Government mismanaged its contractual agreements with Zhongshan Fucheng Industrial Investment, and even ruined relationships in the process.”

“I recall that as far back as 2007, the Otunba Daniel Administration initiated the Free Trade Zone concept in Ogun State. It was a bid initiative then, located in Igbesa. It was called the Ogun-Guangdong Free Trade Zone. There was also the Olokola Free Trade Zone, the OKFTZ, which was a collaborative effort between Ogun and Ondo States and the private sector to be located on about 20,000 hectares. The dream was to turn Ogun State into an industrial hub. When it was further reported that oil had also been discovered in Ogun State, the future could not have looked brighter.”

“It is one thing for government to dream. It is another thing for the goals to be achieved. I am not talking about the past. I am talking about a situation where because of Ogun State, the Court of Justice in Paris has attached three aircraft belonging to the Nigerian Government: a Dassault Falcon 7X, a Boeing 737-7N6, and an Airbus A330, one of which is a brand-new Presidential aircraft, newly procured.”

“I think they have released the Presidential jet. It is the one President Tinubu is cruising to France or short work trip.”

“Hmm. I hope they don’t seize it again while the President is in France. The Zhongshan Fucheng people you know are also planning to seize the 20 million pounds that was awarded in favour of Nigeria against P&ID in the UK, and they also want to confiscate two properties belonging to Nigeria in Liverpool.”

“These people are thieves. I think that they are like the P&ID people”.  

“No, they are not. The only connection between this case and the P&ID in my view is that the Ogun State Government was careless. The most important thing in international trade is trust. When trust is broken, chaos results. Agreements are sacrosanct. When you enter into an agreement, you are required to honour it. States have to be guided by international best practices. The Daniel administration brought the Chinese, the Zhongshan. The Amosun administration later entered into an agreement with Zhongfu, a subsidiary of Zhongshan, a dispute arose and the company was driven away. Zhongshan went to arbitration and got a compensation award of $55.6 million and another US$75,000 plus interest, which now makes it over $70 million.  That was in 2021.The court gave the opportunity to file an appeal. Nobody responded in time, just as in the P&ID case, and by the time Nigeria woke up, our lawyers started quoting jurisdiction and sovereignty which were promptly dismissed by the US Court. And now the Chinese company wants to enforce the judgement.

“You have mentioned France, UK, US, my problem with these China people is their forum shopping. They have gone to every arbitral court possible: UK, Quebec, US, France, British Virgin Islands, and Belgium, just to embarrass Nigeria. Why Nigeria? Why not Ogun State?”

“Nigeria has a Bilateral Investment Treaty (BIT) with China. Its provisions are very clear. Signatories to that treaty can raise arbitral issues under customary international law, even when the wrongful act that has been committed is by the organ of a sovereign. Blame Nigeria, don’t blame the Chinese.”

“But do you agree that there are many sides to this story? Former Ogun State Governor Ibikunle Amosun has said this is a dispute between two Chinese companies, and that Zhongfu is an impostor, and the whole thing has nothing to do with either Ogun State or Nigeria.”

“So, who does it have to do with? The concrete story at the moment is the ruling at arbitration and the provisions of the New York Convention which are enforceable in 170 countries. Get it into your head, there is something called International Arbitration, and at that level rules are rules and those rules are not made by your Nigerian big men.”

“Well, if that is the case, the government of Ogun State should bear its own liabilities. I am not interested in the legal rights of the Chinese. I am a concerned Nigerian and I don’t think anybody should seize the assets belonging to 36 States and the FCT because of the wrongful act of one State of the Federation. Ogun State is just one part of Nigeria. If they have committed an international crime, they should pay for it in that State. Why should an Akwa Ibom or Gombe man lose part of the commonwealth of Nigeria because Ogun State people have caused problems?”

“I think the bigger issue is that you don’t know what will come up tomorrow from your State too. Or any other State. Most of these sub-nationals have serious foreign debt portfolios, protected by sovereign guarantee. When the alarm blows, Nigeria will be in a mess. What we need to address is the capacity of the sub-nationals to enter into international agreements. In particular, our States do not have the capacity to engage with China. Don’t be fooled by the open romance, and China’s interest in Africa. China is a friend only as long as its own interests are served. This is what African leaders do not understand. Our institutions in Africa are also weak.”

“I have never trusted the Chinese and their Belt and Road Initiative, or their debt trap diplomacy. But I blame African leaders who lack the capacity to read between the lines. Nobody should ever rely on the same Chinese who have seized assets in Zambia and Djibouti, and also have challenges with Kenya and Angola. They come bearing gifts and incentives, but always at a cost to the recipient.  Ogun State people should pay their own debt, please. Maybe that will teach every other State government a lesson.”

“Serious embarrassment to Nigeria. But rather than blame the Chinese, I see something else: the point that other international investors would not want to do business with Nigeria, a country where there is no certainty, where you can reach an agreement with one government and another government would come and change everything and you lose money in the process.”

“Professor Pat Utomi said that much in his commentary on the Ogun State saga. I won’t be surprised if more people raise an alarm like Prof. Utomi did. It is not only international investors that are at risk. Local investors too. When you try to invest in Nigeria, you get your fingers burnt, that is why people are running away from us. Ask Dangote too. And I think I agree with Donald Duke, former Governor of Cross River State when he says Nigeria’s politics is full of quacks…they’ve taken it to the lowest level.”

“But do you think President Goodluck Jonathan can help to rescue Nigeria, and restore the years that the locust has eaten if he decides to run in 2027?”

“Wait, wait, wait! How did we just jump right now from international commerce to President Jonathan coming back to rescue Nigeria in 2027? Where is that coming from?”

“It is all out there in the public space. Governor Bala Muhammed of Bauchi was the first to fly the kite. Then, there was a story in Basorun Dele Momodu’s The Boss Newspaper, and yesterday, only this yesterday, ThisDay newspaper carried the same story, saying that there are moves by Northern politicians to draft President Jonathan into the 2027 race after the #EndBadGovernance protests.”

“Okay you have said it, you say they are flying a kite. I recall when I was a child, we used to fly kites, we even had this competition and the wish that our kites could fly as high as an airplane. Right now, I am not thinking of kites, please. I am concerned about how to get fuel into my car and move around. The situation is worse. The country is literally on its knees.”

“President Tinubu is off to France, for a brief work stay.”

“What has that got to do with what I am saying? They don’t have fuel scarcity in France, for God’s sake.”

“I get you. I get you. bought fuel at N1,200 per litre and it was a painful experience queuing at the fuel station. While I am suffering here and other Nigerians are suffering, the President goes to France in a new jet.”

“I hear he also has a new car, a glamorous, Armoured Cadillac SUV called The Beast. The Chairman. The cost is said to be about N995 million.”

“What a Beast! N995 million. And the new presidential jet is how much?  $100 million? I hope both the jet and the Escalade are not made in China. And I get to go and queue up at petrol stations? And poor Nigerians are asked to make sacrifices for the country and endure hardship? Meanwhile, Nigerian Senators are earning N29 million per month! Is that how to lead by example?”

“Well, let’s be realistic here. The President of Nigeria is royalty. You cannot expect him to go about like a plebeian. His security is also very important. You can bring up all your #EndBadGovernance narratives but it is an absolutely false equivalent for you to compare your miserable search for fuel to the lifestyle of the Nigerian President. All things fair and well, the President has tried to meet Nigerians halfway before leaving for France. The President has given NNPC Limited the approval to spend savings from petrol subsidy removal - dividends, taxes and royalties - about N7 trillion from August 2023 to December 2024 to pay for petrol subsidy.”

“In other words, the government has finally admitted that there is no fuel subsidy removal anymore. Government has reversed itself! So, subsidy is no longer gone! Subsidy is back! Nigeria, we hail thee! The same people that told us that there is no more fuel subsidy as recently as two months ago have now turned around to say in fact fuel subsidy is the only way forward. What a policy somersault! They have thrown the Petroleum Industry Act (PIA) into the dust bin just like that? But does that mean I will now find it easier to buy fuel? Will the fuel queues disappear?”

“No guarantee for now. But maybe you can buy fuel whenever it is available at a cheaper price.”

“And when would that be? I am just tired. I don’t know who to trust again in this country, not even the Churches, despite the fact that I am a Christian.”

“As a Christian, you must have faith.”

“Faith. You say, faith? Faith when Prophet Odumeje, the Liquid Metal, the Indaboski, the Onitsha trader who became a Prophet goes to Russia and says on TikTok that Russia is not at war. Faith when I hear that Pastor Adeboye woke up a person who had died for 11 days with an anointed handkerchief from the church. Faith when Primate Ayodele says Victor Osimhen will end his career if he joins Chelsea because there is a curse on that football club. Is the Primate now running a football ministry?”

“Have faith brother because on the contrary, the churches are doing well. Davido’s father over the weekend donated a gift of one billion Naira to a Cherubim and Seraphim Church in Lagos during a Thanksgiving service in honour of his late mother.”

“One ginni?”

“One billion. Davido’s father is not called Baba Olowo for nothing. He simply lived up to his reputation. So just know that it is not everybody that is complaining in this country”

“I just hope that Baba Olowo will also intervene when church elders begin to fight over that One billion Naira. And what is the wisdom in donating N1 billion?”

“He has the right to spend his money the way he deems fit. And why will church elders fight over matters of God. The Bible says...” 

“Forget the Bible. Just this last weekend in Abuja, some church elders pushed the Bible aside and engaged in open combat in their church premises. The FCT Police Command had to fire tear gas to disperse the fighters and put an end to the violence. The police had to lock up the church.”

“United Methodist Church. It was a fight over alien practices introduced by the Church headquarters in the US, which divided the Church.”

“Signs of the end-time. Alien practices in the church. Elders and the congregation fighting for hours. There is nothing we will not see in Nigeria.”

“I can only say that it is not only the political leaders that are at fault. We, the citizens, have our problems too. Leave the churches alone. The Nigerian Constitution allows people to worship God their own way.”

“Anyway, I see that Lagos, Oyo and Ogun States have declared Tuesday, August 20, Isese Day, a public holiday for traditional religion worshippers.”

 “Fair is fair. So, if you think the churches have disappointed you, you can take the day off to celebrate with the Isese people.”

“I rebuke Satan!”

“Leave matter. Many Nigerians are traditionalists. They just camouflage. What is important is that people must learn to defend the common good.”

“You are right. I am even surprised that the NYSC has now had to demobilize 54 fake university graduates and they are to face prosecution.”

“Be specific. They are 54 graduates of the University of Calabar, including a campus bread seller.”

“No. This is not about UNICAL. It is a general problem. In fact, it was the Vice Chancellor of the university that raised the alarm. NYSC is praising her for her vigilance. And I suspect it is not new. Can you imagine how many persons have been mobilized for NYSC over the years, holding fake certificates and occupying important positions?”

“True. Too many quacks indeed in high and low places. What a country!”