The recent moves by a Chinese company to seize assets belonging to the Nigerian government, including two presidential jets, underscore the critical importance of vigilance and ethical governance in the management of international contracts.
Development Diaries reports that Chinese company Zhongshan Fucheng Industrial Investment Co. Limited is making moves to seize the £20 million judgment cost awarded in favour of Nigeria against P and ID by a United Kingdom appeal court last month.
According to media reports, in connection with the conflict between Ogun State and the Chinese firm, the company, which had previously obtained a court order in France to seize two presidential planes owned by Nigeria, is also attempting to seize two properties in Liverpool that are owned by the Nigerian government.
These developments highlight how disputes arising from poorly managed contracts can lead to significant financial and reputational risks for a country.
Furthermore, this scenario illustrates the severe consequences that can arise from lapses in contract management and ethical governance.
We agree with the Civil Society Legislative Advocacy Centre (CISLAC) and Transparency International Nigeria (TI-Nigeria) urging state governors to place a greater emphasis on due diligence and legal consultations during contract negotiations.
When governments enter contracts with foreign entities, it is expected that they anticipate potential disputes and ensure that the terms are meticulously reviewed and aligned with national interests.
Failure to do so can result in significant financial liabilities and loss of sovereign assets, as seen in this case.
Furthermore, the lapses in the federal government’s oversight are evident in allowing state governors to secure loans or enter into contracts without adequately addressing the associated risks.
The dispute between Ogun State and the Chinese firm reflects broader systemic issues in Nigeria’s governance, where individual states may engage in international agreements without sufficient scrutiny or safeguards.
This lack of coordination and oversight can lead to legal disputes that can affect the states involved and also have far-reaching implications for the entire nation.
This situation calls for a reassessment of how international contracts are managed at both state and federal levels in Nigeria.
Development Diaries calls on the President Bola Tinubu-led administration and all state governors to employ stricter regulations and oversight mechanisms to ensure that contracts are entered into with full awareness of their potential risks and consequences.
Both the federal and state governments must ensure that contracts are negotiated with due diligence and are aligned with national interests.
Additionally, there must be a commitment to transparency and accountability in all dealings to prevent the kind of mismanagement that leads to costly legal battles.
Photo source: Daily Trust
