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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.

 

NEWS

“We Are Raising Fraudsters” — Obi Reacts to EFCC’s Explosive Student Cybercrime Report

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Former presidential candidate of the Labour Party, Peter Obi, has reacted strongly to a recent report by the Economic and Financial Crimes Commission (EFCC) alleging that a significant number of Nigerian university students are involved in internet fraud.

The EFCC had reportedly warned that cybercrime is becoming increasingly common among undergraduates, a development it described as a growing national concern requiring urgent attention from authorities, parents, and educational institutions.

SEE ALSO: Political Earthquake Brewing? Peter Obi, Bala Mohammed in Closed-Door Talks

Reacting to the claim, Obi described the situation as deeply troubling, warning that Nigeria may be “raising a generation of fraudsters” if the trend is not urgently addressed.

According to him, if even a large fraction of the allegation is true, it signals not just a crime problem but a broader collapse of values and moral discipline in the country.

He stressed that young people do not operate in isolation, arguing that society, leadership, and institutions all play a role in shaping behaviour. Obi noted that when dishonesty appears to thrive without consequences, it sends the wrong message to the youth.

The former Anambra State governor also called for urgent reforms in governance, education, and value reorientation, insisting that integrity must be restored at all levels of society.

He added that the focus should not only be on condemning young people but on addressing the systems that influence their choices and actions.

Obi further urged leaders to set better examples, warning that a society cannot expect honesty from its youth if accountability is weak at the top.

The EFCC has continued to express concern over rising cybercrime cases in tertiary institutions, describing the trend as a threat to national development and security.

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NEWS

Police Rescue Five Abducted Students in Ogun After Gun Battle

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Man Arrested For Burglary In Ogun Churches

Operatives of the Nigeria Police Force have successfully rescued five students of Gateway Polytechnic, Saapade, following their abduction by gunmen in Ogun State.

The students were reportedly kidnapped late Monday night in the Sapade area of Remo North Local Government Area, triggering a swift response from security operatives after a distress call was received around 10:55 p.m. at the Ipara Police Division.

Upon arrival at the scene, officers discovered an ash-coloured Toyota vehicle riddled with bullet holes and stained with blood. Several mobile phones and personal belongings were also recovered from the abandoned car.

SEE MORE: Horror in Kogi: Gunmen Abduct 24 Pupils in Orphanage Raid, 15 Rescued

Confirming the incident, the Police Public Relations Officer in the state, Oluseyi Babaseyi, said an identity card found at the scene linked the victims to Gateway Polytechnic, prompting an immediate escalation and a full-scale rescue operation.

The Commissioner of Police, Bode Ojajuni, subsequently ordered the deployment of tactical units in what he described as an intelligence-driven mission to secure the students’ release.

Security teams drawn from the Isara Area Command, Ipara Division, SWAT, Anti-Kidnapping Unit, Violent Crime Response Unit, Quick Response Squad, and Operation MESA were mobilised for coordinated bush-combing and tracking operations across suspected escape routes.

The sustained pressure paid off on April 28, when the students were rescued unhurt from their captors.

According to the police, the kidnappers engaged operatives in a gun duel during the rescue effort but were overpowered by superior firepower, forcing them to flee with suspected gunshot wounds. No casualties were recorded among security personnel.

“The victims were immediately evacuated, debriefed, and taken for medical attention due to the conditions they endured while in captivity,” Babaseyi added.

Commending the operatives, Ojajuni praised their gallantry and professionalism, noting that their swift coordination was instrumental to the success of the mission.

He assured residents that efforts are ongoing to apprehend the fleeing suspects, with intensified bush-combing operations already underway.

The police also urged members of the public to remain vigilant and report suspicious movements, emphasizing that community cooperation remains critical in the fight against crime.

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International News

Fresh Violence Rocks Mali as France Orders Citizens to Evacuate

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The government of France has issued an urgent directive to its citizens in Mali, advising them to leave the country immediately following a fresh wave of violent attacks.

In a travel advisory released on Wednesday, the French foreign ministry described the security situation in Mali as “extremely volatile,” citing recent assaults carried out by jihadist groups and Tuareg separatist fighters over the weekend.

ALSO READ: Mali’s Junta Leader Assimi Goita Grants Himself Unlimited Presidential Mandate

According to the statement, all travel to Mali remains strongly discouraged regardless of purpose, as authorities warned that the risk to foreign nationals has significantly increased.

“French nationals are advised to make arrangements to leave Mali temporarily as soon as possible on the commercial flights that are still available,” the ministry said.

The advisory comes amid renewed concerns over instability in the Sahel region, where armed groups have continued to intensify their operations despite years of military interventions.

President Emmanuel Macron has repeatedly expressed concern over the deteriorating security climate in Mali, particularly following the withdrawal of foreign forces and the growing influence of insurgent factions.

Mali has been grappling with insecurity since 2012, as jihadist insurgency, separatist tensions, and political unrest continue to undermine stability in the country.

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