In the wake of a London court's decision allowing a Chinese firm to seize Nigerian properties in the UK, former Senator Shehu Sani has voiced strong concerns over the jurisdictional aspects of foreign contracts involving Nigeria. He highlighted the need for future agreements to mandate that legal disputes be resolved within Nigeria's judicial system.
Sani, known for his advocacy on national issues, expressed his frustration on his verified Twitter account. "I don’t understand how a foreign firm will come to our country and sign a contract agreement, and when things go bad they file suit against us in European or American Courts. They want our money but don’t want our justice system," he stated, pointing to a perceived imbalance in the way international legal disputes are handled.
This critique comes after a UK commercial court upheld a $70 million arbitration award in favor of Zhongshan Fucheng Industrial Investment Co. Ltd. The ruling allows the Chinese company to enforce the award by seizing two residential properties owned by Nigeria in Liverpool. The properties were initially acquired by Zhongshan’s parent company, Zhuhai Zhongfu Industrial Group Co. Ltd, in 2010 as part of a deal to develop a free trade zone in Ogun State. However, the relationship soured, leading to allegations of breach of contract and subsequent arbitration under the China-Nigeria Bilateral Investment Treaty.
Despite Nigeria's arguments for sovereign immunity and claims that the properties served consular functions, the London court dismissed these defenses. The court found that the properties had been leased out and not used for diplomatic purposes for many years. This decision has sparked significant debate in Nigeria regarding the jurisdiction and enforcement of foreign arbitral awards.
Sani's call to action emphasizes the need for reforms in how Nigeria handles contracts with foreign entities. "All agreements with foreign firms must compel them to seek justice within the confines of our country," he argued, suggesting that future contracts should include clauses that enforce the use of Nigerian courts for any legal disputes.
He also appealed to senior legal figures, like human rights lawyer Deji Adeyanju, to provide greater clarity on the principles of jurisdiction in such cases. Sani's remarks reflect a broader sentiment in Nigeria regarding the perceived disadvantages of resolving disputes in foreign courts, which often results in significant financial and asset losses for the country.