Ogun State Former Governor, Amosun Admits Error in Leasing Ogun Trade Zone to Dubious Chinese Firm
Former Governor Ibikunle Amosun revealed on Saturday that he was misled into transferring control of Ogun State’s multi-billion-naira trade zone to a questionable Chinese company, adding a troubling new layer to the ongoing legal disputes that risk diminishing Nigeria’s assets internationally.
Amosun, who served as governor from 2011 to 2019, disclosed in a statement that he had not conducted a thorough evaluation before granting management of the Ogun-Guandong Free Trade Zone to a Chinese delegation in 2012. This decision has sparked a lengthy legal struggle, with dissatisfied Chinese investors recently targeting Nigeria’s assets in Europe and the United States.
The trade zone was initially established in 2007 through a partnership between Ogun State, then led by Governor Gbenga Daniel, and Guangdong Xinguang International China Africa Investment Ltd (China Africa). This project aimed to enhance trade between Nigeria and China at the Igbesa site in Ogun State. China Africa, holding a 60% stake, was in the process of developing the 10,000-hectare zone when, in 2012, Zhongfu International Investment Ltd claimed that the zone was being mismanaged and sought to take over its operations.
In his statement, Amosun explained that he appointed Zhongfu as interim managers based on their claims, pending a thorough investigation into the allegations.
“Zhongfu International Investment FXE, posing as a concerned stakeholder, provided damaging information about the official managers, China Africa Investment FXE, and requested to be made interim managers,” Amosun stated. “The decision was made to ensure the zone was managed responsibly while we conducted a fact-finding mission.”
It was later discovered that Zhongfu’s allegations were false, and their real intention was to undermine China Africa and secretly take over the zone’s assets. The Ogun State government was unaware of Zhongfu’s ulterior motives at the time.
Chinese authorities intervened, as noted in Diplomatic Note 1601 dated March 11, 2016, confirming China Africa’s rightful ownership of the investment, Amosun said. Despite this, Zhongfu pursued legal action in Nigerian courts but lost all four cases.
Amosun urged both the federal and Ogun State governments to reject any further engagement with Zhongfu. He likened the situation to the P&ID case, asserting that no negotiations should take place with Zhongfu, as it would only validate an illegitimate claim.
Recent criticism has been directed at Amosun for his role in Nigeria’s disputes with Chinese investors, including attempts to seize assets linked to President Bola Tinubu. On August 9, an appellate panel in the U.S. authorized Zhongfu’s parent company, Zhongshan, to continue its efforts to seize Nigerian assets in the U.S., following a $60 million compensation judgment obtained in the UK in 2021.
