Chinese Firm Targets Nigerian Assets Over $100m Debt

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Headlines

Chinese Firm Targets Nigerian Assets Over $100m Debt - A Chinese company, Zhongshan Fucheng Industrial Investment Co. Limited, is intensifying its pursuit of Nigerian assets to recover a $100 million debt owed by Ogun State. The saga began with a 2010 agreement between Zhongshan and Ogun State to develop an industrial park. However, the deal soured, leading to Zhongshan terminating the contract and seeking compensation. An arbitral tribunal awarded Zhongshan $74.5 million, but Ogun State has defaulted on the payment. In a bid to recover its funds, Zhongshan secured a court order to seize three Nigerian presidential jets in France. The company is also targeting Nigerian assets in the UK, USA, Belgium, Canada, Singapore, and the British Virgin Islands. The Nigerian government vehemently denies any contractual obligation to Zhongshan, arguing that the dispute is solely between the Chinese company and Ogun State. The government insists that the seized jets are sovereign assets immune from foreign legal actions. Both the federal and Ogun State governments have initiated legal and diplomatic efforts to challenge the seizure and protect Nigeria's assets. The situation has escalated into a complex legal battle with far-reaching implications for Nigeria's international reputation and financial standing.

Nigeria to Tap Domestic and Foreign Investors with $500 Million Bond - Nigeria is seeking to bolster its foreign exchange reserves and fund critical infrastructure projects through a new $500 million bond targeted at both domestic and foreign investors. This innovative financial instrument, unveiled by the Debt Management Office (DMO), offers a tax-exempt status to entice investors. With a minimum investment of $10,000, the bond is designed to be accessible to a wide range of investors, including Nigerians in the diaspora. The government believes this move will not only attract foreign capital but also encourage domestic savings to be channelled into productive sectors of the economy. The funds raised from the bond are expected to contribute to stabilizing the naira, reducing inflation, and ultimately lowering interest rates. The government is optimistic about the bond’s reception, given the current economic climate and the potential returns for investors. By tapping into the domestic market for dollar-denominated investments, Nigeria aims to reduce its reliance on external borrowing and strengthen its financial resilience. This initiative is part of a broader strategy to mobilise resources for national development and improve the overall economic landscape.

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