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US Court Backs French Court’s Affirmation Of $70m Arbitration Award Against Nigeria

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A U.S. Appeal Court court has granted Zhongshan Fucheng Industrial Investment Co. Ltd. permission to enforce a $70 million arbitration award against Nigeria.

In a 2-1 decision on August 9, the court upheld a previous ruling by the U.S. District Court for the District of Columbia, affirming the enforceability of the award.

In January 2023, Judge Beryl Howell, who presided over the lower court, rejected Nigeria’s claim that the court lacked jurisdiction due to its status as a sovereign state.

Read Also: French Court Orders Seizure Of Nigerian Presidential Jets

Howell ruled that the court does have jurisdiction, noting that the United Kingdom, where the arbitration award was issued, is a signatory to the New York Convention, which governs the enforcement of international arbitration awards.

In 2010, Zhongshan Fucheng Industrial Investment Co. Ltd., through its Chinese parent company, Zhuhai Zhongfu Industrial Group Co. Ltd., secured rights to develop a free trade zone in Ogun State, Nigeria.

By the following year, Zhongshan established Zhongfu International Investment (NIG) FZE, a Nigerian entity, to manage the project with the approval of the Ogun State government.

However, in July 2016, tensions arose when the investor accused the state government of abruptly attempting to terminate its role and replace it with a new manager for the free trade zone.

In response, Zhongfu initiated an investment treaty arbitration against Nigeria under the bilateral investment treaty (BIT) between China and Nigeria.

The arbitrators concluded that Nigeria had violated its obligations under the China-Nigeria BIT and awarded Zhongshan approximately $70 million in compensation.

In January 2022, the Chinese company filed a case to enforce the $70 million arbitration award.

Nigeria argued for state immunity, but Sara Cockerill, a UK high court judge, dismissed the plea, stating that Nigeria had misused the time allowed for appealing arbitral awards.

In its majority judgment, the U.S. appellate court ruled that the arbitration award is enforceable under the New York Convention, as the dispute involves “persons” engaged in a legal commercial relationship.

The court further determined that the arbitration exception under the Foreign Sovereign Immunities Act (FSIA) nullified Nigeria’s claim to sovereign immunity in this case.

“For the foregoing reasons, we hold that the final award is enforceable under the New York convention because it arose out of differences between ‘persons’ that share a legal, commercial relationship,” the majority judgment reads.

“The district court therefore has jurisdiction over this case under the FSIA’s arbitration exception. The judgment of the district court is affirmed.”

The majority judgment was written by Judges Patricia Millett and Julianna Childs.

In his dissenting opinion, Judge Gregory Katsas argued that the term “persons,” as understood when the New York Convention was drafted, did not include sovereign nations.

He also asserted that the actions of Ogun State should not be imputed to Nigeria, noting that the arbitration award stems entirely from Nigeria’s sovereign acts under public international

Katsas said, “Text, legal context, and drafting history all indicate that the word ‘persons,’ as used in the New York Convention, does not include signatory nations acting as sovereigns. I respectfully dissent.

Just three days after the U.S. appeal court’s ruling, a Paris court in France ordered the seizure of three jets owned by the Nigerian government in connection with the $70 million arbitration award owed to the Chinese company.

In 2023, a UK court of appeal also held Nigeria liable for the same arbitration award in favor of the Chinese firm.

This outcome means Nigeria has now lost arbitration award cases related to the dispute in France, the U.S., and the UK.

The Nigerian government has accused the Chinese firm of trying to use deceptive tactics to gain control of the country’s offshore assets.

 

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BREAKING: Tinubu Sends State Police Bill to Senate as Nigeria Moves to Overhaul Security System

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President Bola Tinubu has transmitted a Constitution Alteration Bill to the Senate seeking the establishment of state police across Nigeria, in what is being described as a major step toward restructuring the country’s internal security framework.

The proposed bill aims to amend relevant sections of the 1999 Constitution to provide legal backing for the creation of state-controlled police forces in addition to the existing federal policing system.

SEE MORE: Obi Calls for Tinubu’s Resignation Over ‘Failure in Governance’ After UK PM Exit

The reform is intended to decentralise security operations and improve rapid response to growing security challenges across different regions.

According to the proposal, state governments will be empowered to establish and manage their own police commands, with oversight structures expected to be defined through constitutional provisions and supporting laws.

The move comes amid rising concerns over insecurity, including terrorism, banditry, and kidnapping in several parts of the country.

The administration has repeatedly argued that a centralised policing system is no longer sufficient to address Nigeria’s complex security realities.

Tinubu had earlier called on the National Assembly to consider constitutional amendments that would enable state policing, describing it as a necessary step toward strengthening grassroots security management.

The proposal has already gained momentum within the National Assembly, where lawmakers have been working on various constitutional amendment bills aimed at decentralising policing powers.

The Senate is expected to deliberate on the bill in an emergency plenary session, as the proposal continues to generate nationwide debate on the future of policing and security in Nigeria.

 

 

 

Details later………. 

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Why Taraba Sanitation Agency Slashed Street Sweepers’ Allowance Again to ₦10,000

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The Chairman of the Taraba State Environmental and Sanitation Agency, Illiya Kefas, has explained the reason behind the latest reduction in the monthly allowance of street sweepers under the “Operation Keep Taraba Clean” programme, sparking fresh reactions across the state.

The allowance of the workers, popularly known as street sweepers, was reduced from ₦15,000 to ₦10,000, marking another cut in their earnings since the programme was introduced in 2023.

SEE MORE: How Troops Forced Kidnappers to Abandon Two Bank Staff in Taraba

Kefas said the decision was necessary to sustain the agency’s operations due to rising workforce numbers and increasing financial pressure across the state’s 16 local government areas in Taraba State.

According to him, the adjustment was not a directive from Governor Agbu Kefas, but an internal administrative measure taken by the agency to manage its expanding responsibilities.

“The arrangement was an internal decision to sustain the activities of the agency and not a directive from the governor,” he said.

He explained that the agency now oversees a large structure that includes 16 local government coordinators, supervisors, monitoring teams, and more than 100 casual sanitation workers.

Kefas added that coordinators earn between ₦100,000 and ₦200,000 monthly, while supervisors receive about ₦50,000, and the agency also spends over ₦5 million monthly on feeding casual workers engaged in sanitation duties.

The latest reduction has added to a series of pay cuts affecting street sweepers since 2023. Initially, workers earned ₦20,000 monthly when the programme began, but their pay was reduced to ₦15,000 in 2024 and further slashed to ₦10,000 in 2026.

Defending the decision, Kefas maintained that workers dissatisfied with the new allowance were free to leave the programme.

“I have the right to ask my people to work at ₦10,000. Anyone interested will work, and if you are not, you can go your way,” he stated.

He also cited limited allocations from the Federation Account and increasing wage obligations following new recruitments as part of the financial challenges affecting the agency.

The development has continued to generate mixed reactions, with many residents questioning the sustainability and fairness of the repeated salary reductions.

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‘They Died Instantly’ — Survivor Speaks on Deadly Plateau Ambush That Claimed Two Lives

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Four Policemen Die, Target Kidnapped As Gunmen Attack Convoy In Port Harcourt

At least two people have been killed following a deadly ambush by suspected gunmen in Talma Village, Ngel District of Jos South Local Government Area of Plateau State.

The victims, identified as Sadiq Muhammad, 28, and Mas’ud Abdullahi, 29, were reportedly attacked around 8 p.m. on Monday while heading to their cattle pen.

Confirming the incident, the Plateau State Chairman of the Miyetti Allah Cattle Breeders Association of Nigeria (MACBAN), Ibrahim Yusuf Babayo, condemned the attack and called on security agencies to bring the perpetrators to justice.

SEE ALSO: Gunmen Kill Ex-Ogun State Broadcaster, Security Guard in Early Morning Attack

According to Babayo, the attackers opened fire on the victims multiple times, killing them on the spot.

“The perpetrators shot them several times, resulting in their deaths. This act of terrorism has become an everyday occurrence. People can no longer move freely without being attacked or killed,” he said.

One of the survivors, Ismaila Haruna, narrated his ordeal, revealing how he narrowly escaped death during the attack.

Haruna said he and the deceased were travelling on motorcycles to their cattle pen when armed men suddenly emerged and began shooting indiscriminately.

“Three of us were riding motorcycles when suddenly gunmen opened fire indiscriminately. We all fell down. My colleagues died instantly, but I managed to escape and reported the incident to personnel of Operation Enduring Peace,” he said.

The survivor added that security personnel later escorted him back to the scene, where the bodies of the deceased and their motorcycle were recovered.

He said the remains of the victims were subsequently released to their families for burial.

Babayo urged members of the community to remain calm and avoid taking the law into their own hands while security agencies investigate the incident.

“I am calling on all members to remain calm and not take the law into their own hands. We should all be law-abiding citizens,” he added.

Efforts to reach the spokesperson of the Plateau State Police Command, SP Alfred Alabo, for comments were unsuccessful as of the time of filing this report.

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