The Civil Society Legislative Advocacy Centre and Transparency International Nigeria (CISLAC/TI-Nigeria) have called on state governors to prioritize due diligence and seek legal consultations in contract negotiations. This appeal follows the recent seizure of three Nigerian presidential jets by a French court, linked to a contract dispute between the Ogun State Government and the Chinese firm Zhongshan Fucheng Industrial Investment Co. Ltd.
In a statement signed by Executive Director Auwal Musa Rafsanjani, CISLAC/TI-Nigeria expressed deep concern over the escalating legal conflict, rooted in a 2007 agreement for the development of the Ogun Free Trade Zone. Rafsanjani stressed that the fallout from the poorly managed contract has led to significant financial losses and damaged Nigeria’s international reputation.
“State governors and government officials must fully understand the legal and ethical complexities of international agreements before entering into them,” Rafsanjani stated. “Nigeria is already facing numerous socio-economic challenges, and the last thing we need is to be entangled in costly legal disputes that could have been avoided with proper due diligence.”
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Rafsanjani criticized the federal government for permitting state governors to access loans without adequately considering potential risks. He highlighted how personal interests often lead public officials into problematic agreements, drawing a parallel to the notorious P&ID case. “CISLAC/TI-Nigeria’s call serves as a reminder of the need for vigilance and ethical governance in handling international contracts to prevent severe repercussions from mismanagement,” he added.
CISLAC and Transparency International have closely monitored and advocated for global transparency and accountability, particularly following the 2017 arbitration order in the P&ID case, which mandated Nigeria to pay $6.6 billion in fines due to contractual breaches. This amount ballooned to $11 billion due to accrued interest.
Rafsanjani emphasized the importance of ethical governance and due diligence, especially as Nigeria navigates complex international legal situations. He urged President Bola Tinubu and anti-corruption agencies to prosecute those implicated in sabotaging Nigeria’s interests, including former senior officials who colluded with P&ID for personal gain.
CISLAC/TI-Nigeria’s statement underscores the broader concerns about Nigeria’s management of international agreements and the severe consequences of neglecting due diligence. “As the country navigates this complex legal situation, it is crucial to remember the need for vigilance and ethical governance in contract negotiations,” Rafsanjani concluded.
