The Social Democratic Party’s candidate in the 2023 presidential election, Prince Adewole Adebayo, has downplayed the judgment seizing the presidential jets by a Chinese company, calling it a “temporary setback” that will be vacated in the next hearing.
Adebayo explained that no entity of the state can attach assets, money, or property belonging to a sovereign nation to a contract. He attributed the issue to the Chinese firm and the Ogun State Government, which were supposed to be partners, becoming opponents and engaging in litigation.
“Sometimes, these businesses outlive the tenure of the incumbent governor, and the successor might not understand the seriousness and decide to terminate the contract,” Adebayo said.
He further explained that internationally, when governments engage investors and sign contracts, they are not only signing commercial contracts but also treaties. If a dispute arises, the investor may sue in a regular court, arbitration, or state treaty arbitration.
“In this case, as a Nigerian doing business in China, there is an agreement internationally that Nigeria and China are signatories to, where they say if our citizen is doing business in the other country, they can do arbitration through the mechanism of the treaty,” Adebayo added.
Adebayo emphasized that the dispute is not originally a federal government obligation but an obligation of Ogun State. However, under public international law, subdivisions, subsidiaries, and sub-nationals are not recognized internationally.
He clarified that it was not a loan but a business between the Ogun State Government and the Chinese private firm that went to arbitration. Adebayo also noted that the interim attachment of the presidential jets does not mean they have been lost, as assets used for diplomacy and monies kept in the central bank are immune under international law.
“I believe that as the law stands, once Nigeria appears there and can demonstrate, especially with the assistance of the foreign ministry of the French government, that these are diplomatic assets, the court will lift the seizure,” Adebayo concluded.