Peter Obi, presidential candidate of the Labour Party (LP) in the 2023 election, says the seizure of three presidential jets by a French court is an “international embarrassment” to the country.

A Paris court recently ordered the seizure of three jets belonging to the Nigerian government over a dispute involving an arbitration award in favour of ZhongshanFucheng Industrial Investment Co. Ltd., a Chinese firm.

The court ruled that the Chinese firm should use the three jets at the Paris-Le Bourget and Basel-Mulhouse international airports “as security for its claim of EUR 74,459,221”.

However, the presidency on Thursday accused the Chinese firm of using “unorthodox and subterfuge” means to take away Nigeria’s offshore assets.

Obi, in a statement by Yunusa Tanko, his campaign spokesperson, said the seizure of presidential jets has exposed the federal government’s disregard for the rule of law and failure of leadership.

The former governor of Anambra said the federal government’s decision to proceed with the purchase of the jet amidst widespread criticism and severe economic struggles showed the insensitivity of President Bola Tinubu’s administration to the plight of citizens.

Obi also demanded that the federal government explain the circumstances surrounding the jet seizure.

“The trending international news on the seizure of three jets belonging to Nigeria’s presidential fleet is yet another of many embarrassing things exposing our failed leadership and our attitude to the rule of law even in a democracy,” the statement reads.

“It has also exposed multiple dimensions to our leadership failure and our insensitivity to the plight of the growing poor class in our midst.

“The fact that the federal government went ahead with the jet deal despite the cacophonous cry against the purchase of a presidential jet at this time when the people are going through a horrifying economic hardship shows the insensitivity of this administration.

“Added to it is the embarrassing aspect of our country’s presidential jets being held for contractual breaches arising from yet another dimension of inadequate leadership tidiness.

“I have been loud in my demand over time that the government at all levels should be accountable to the people, meaning that they must be very transparent in all their dealings.

“Until a court in France prohibits Nigeria from moving or selling these three jets, Nigerians have no iota of information about both the buying and selling of these aircraft.

“It has been done in secrecy. Federal government property, which belongs to the people, is being managed as a personal family asset.

“Paying as much as $100 million for a presidential jet for a country that is the poverty capital of the world and has more out-of-school children with over 40% food inflation is the height of concern for the people’s feelings.

“This incident has also opened up an aspect of indiscipline that is copiously embedded in our country, which is the abuse and disrespect for the rule of law.

“Here are questions begging for answers: To what extent did the Ogun government follow its agreement with the Chinese firm?

“After the UK court ruling that prohibited some Nigerian buildings in Liverpool, what did both Ogun state and the federal government do before the French court action?

“I would like to, therefore, challenge the federal government to come clean and transparent on this matter and tell Nigerians how we got to this latest international mess.”

[TheCable]

Nigeria is on the verge of securing a $500 million loan from the World Bank, a significant financial boost aimed at addressing critical challenges in the country’s education and healthcare sectors. 

This is according to the “Program Information Document (PID)” for the appraisal stage of the Nigeria Human Capital Opportunities for Prosperity and Equity (HOPE) Governance Program. 

The proposed loan, part of the Nigeria Human Capital Opportunities for Prosperity and Equity (HOPE) Governance Program, is intended to tackle long-standing staffing gaps and enhance the performance management of basic education teachers and primary healthcare workers. 

World Bank likely to approve loan next month 

The World Bank is expected to give its final approval for the loan on September 26, 2024.  

According to the PID seen by Nairametrics, the loan will focus on three major result areas, with the improvement of recruitment, deployment, and performance management of sector workers being a key component. 

This effort is particularly important given Nigeria’s alarming human capital index, which indicates that a child born in the country today will only achieve 36% of their productive potential if current levels of health and education services persist. 

One of the primary objectives of the loan is to incentivize improvements in workforce planning within the education and healthcare sectors.

The loan will provide the necessary financial resources to enhance the recruitment processes, ensuring that qualified professionals are adequately deployed to where they are most needed.

The initiative will also address the significant disparities in staffing across Nigeria’s regions, a challenge that has long plagued both sectors. 

Nigeria to leverage BVN, NIN to tackle payroll fraud 

In addition to workforce planning, the loan will support the adoption of new systems to improve payroll management and reduce fraud. This includes the implementation of the Central Bank of Nigeria’s Bank Verification Numbering (BVN) system and National Identity Numbers (NIN) platforms. 

These systems will play a crucial role in ensuring that funds are used efficiently and that only verified employees are on the payroll, thereby eliminating ghost workers. 

The planned introduction of biometric check-ins and community monitoring, where available, will further strengthen the accountability and performance of education and health workers. 

A part of the PID noted that one of the expected results of the loan program is improved recruitment, deployment, and performance management of basic education teachers and primary health workers, adding that: “This results area will incentivize: (i) the enhancement of the sector and workforce planning function, (ii) reduction of significant staffing gaps and improved deployment and management practices for basic education and primary health care workers, and (iii) adoption of new or existing systems such as the Central Bank of Nigeria Bank Verification Numbering (BVN) system and National Identity Numbers platforms to check payroll fraud, biometric check-ins where available, community monitoring, performance bonuses, automatic payroll deductions.” 

Loan program to run for four years 

• The HOPE Governance Program, under which this loan falls, is scheduled to run from 2024 to 2028, providing support for systemic reforms at both the state and federal levels, focusing on cross-sectoral issues such as financial resource allocation, public financial management, fiscal transparency, and accountability. 
• As part of the World Bank’s support, the loan will also incentivize the reduction of staffing gaps by 40%, with a target that at least 30% of new recruits will be women.
• This gender-sensitive approach is intended to address not only the quantity but also the quality and diversity of the workforce in these critical sectors. 
• The loan is part of a larger $2 billion government program that seeks to accelerate the provision of quality basic education and healthcare services across Nigeria. 

[Nairametrics]

The Ekiti State Police Command said it had arraigned a 20-year-old cattle rearer, Mohamadu Bello, before an Ado Ekiti Chief Magistrate’s Court for allegedly destroying farm produce valued at N3.8m belonging to four individuals.

The police prosecutor, Inspector Elijah Adejare, told the court on Thursday that the defendant committed the offence on August 10 at Ido Ile Ekiti.

Adejare alleged that “the defendant, who is a cattle rearer, maliciously damaged the farm produce valued at N300,000 belonging to one Awiye Olusola. The defendant also maliciously damaged the farm produce valued at N2.8m belonging to one Oni Samson.

“The defendant maliciously damaged farm produce valued at N300,000 belonging to one Igbalajobi Adeyomi. The defendant also maliciously damaged farm produce valued at N400,000 belonging to one Akinola Sunday.

“The offences committed contravened Sections 363 of the Criminal Law of Ekiti State, 2021.”

Adejare prayed the court for an adjournment to enable him to study the case file and present his witnesses.

The counsel for the defendant, Mr. Adeyemi Egbebi, urged the court to grant the defendant bail, with a promise that he would not jump bail.

The Chief Magistrate, Mr Bankole Oluwasanmi, granted the defendant bail in the sum of N80,000 with one surety in like sum and adjourned the case till September 6 for hearing.

Police prosecutor, Sergeant Alice Ojo, told the court that the defendants, 22-year-old Abdurasheed and 42-year-old Aluko, allegedly committed the offence on August 6 in Ado Ekiti, the Ekiti State capital.

Ojo alleged that “the defendant, Abdurasheed, stole one Bajaj motorcycle valued at N1.2m belonging to one Ogundipe Babasanmi. The defendant, Aluko, has in his possession one Bajaj motorcycle valued at N1.2m.”

“The offences committed contravened Sections 302 and 343 of the Criminal Law of Ekiti State, 2021,” she said.

The prosecutor asked the court for a short adjournment to enable her to study the case file and present her witnesses.

Counsel for the defendants, Mr Adeyemi Egbebi, urged the court to grant the defendants bail, with a promise that they would not jump bail.

The Chief Magistrate, Mr Abayomi Adeosun, granted bail to the defendants in the sum of N250,000 with one surety each in like sum and adjourned the case till September 27 for hearing.

An appeal court in the United States (US) has authorised Zhongshan Fucheng Industrial Investment Co. Ltd. to enforce the $70 million arbitration award against Nigeria.

In a 2-1 verdict delivered on August 9, the majority ruling affirmed the judgment of the US district court for the district of Columbia that held that the arbitration award is enforceable.

In January 2023, Beryl Howell, the presiding judge of the lower court, dismissed Nigeria’s argument that the court did not have jurisdiction over the case since the country is a sovereign entity.

Howell held that the court has jurisdiction since the United Kingdom (UK), where the $70 million arbitration award was issued against Nigeria, is a signatory to the New York Convention.

ZHONGSHAN FUCHENG VS NIGERIA

In 2010, Zhongshan, through Zhuhai Zhongfu Industrial Group Co. Ltd. (Zhuhai), its Chinese parent company, acquired rights to develop a free trade zone in Ogun state.

A year later, Zhongshan set up Zhongfu International Investment (NIG) FZE (Zhongfu), a Nigerian entity, to manage the project under the permission of the Ogun state government.

However, things took a different turn in July 2016 when the investor accused the state government of abruptly moving to terminate its appointment while attempting to install a new manager for the free trade zone.

Subsequently, Zhongfu initiated an investment treaty arbitration against Nigeria under the bilateral investment treaty between the People’s Republic of China and Nigeria (the China-Nigeria BIT).

The arbitrators had ruled that Nigeria was in breach of its obligations under the China-Nigeria BIT and awarded Zhongshan compensation of around $70 million.

In January 2022, the Chinese company initiated a case to seek enforcement of the arbitration award.

Nigeria pleaded state immunity but was turned away by Sara Cockerill, a high court judge in the UK, who said the country abused the time frame for appealing arbitral awards.

THE US APPEAL COURT JUDGMENT

In the majority judgment, the US appellant court held that the final arbitration award is enforceable under the New York convention since the dispute is between “persons” that share a legal commercial relationship.

The court ruled that the Foreign Sovereign Immunities Act (FSIA) arbitration exception stripped Nigeria of the sovereign immunity in the arbitration award 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 issued by Patricia Millett and Julianna Childs.

In the dissenting judgment, Gregory Katsas, the third judge, argued that when the New York convention was drafted, the word “persons” did not include a sovereign nation.

Katsas held that the action of Ogun state cannot be attributed to Nigeria, adding that the arbitration award “arises solely out of Nigeria’s sovereign acts governed by public international law”.

“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,” Katsas said.

NIGERIA LOSING CASE AGAINST CHINESE FIRMS IN MULTIPLE JURISDICTIONS

Barely three days after the judgment of the US appeal court, a Paris court in France ordered the seizure of three jets belonging to the Nigerian government over the dispute involving the arbitration award to the Chinese firms.

In 2023, a court of appeal in the UK ruled that Nigeria is liable for a $70 million arbitration award in favour of the Chinese firm.

The development means that Nigeria has lost arbitration award cases against the Chinese firm in France, the US, and the UK.

The Nigerian government has accused the Chinese firm of attempting to use deceptive means to acquire the country’s offshore assets.