The Civil Society Legislative Advocacy Centre (CISLAC) and Transparency International Nigeria (TI-Nigeria) have issued a stern call to state governors to prioritize due diligence and seek comprehensive legal consultations before entering into contracts. This appeal follows the recent seizure of three Nigerian presidential jets by a French court, an action linked to a contract dispute between the Ogun State Government and the Chinese firm Zhongshan Fucheng Industrial Investment Co. Ltd.
In a statement released by Auwal Musa Rafsanjani, Executive Director of CISLAC/TI-Nigeria, the organization expressed deep concern over the ongoing legal conflict. The dispute traces back to a 2007 agreement involving the development of the Ogun Free Trade Zone. Rafsanjani underscored that this poorly handled contract has not only resulted in significant financial losses but has also severely damaged Nigeria’s international reputation.
“State governors and government officials must fully comprehend the legal and ethical complexities inherent in international agreements before committing to them,” Rafsanjani stated. He warned that Nigeria, already burdened with numerous socio-economic challenges, cannot afford to be drawn into avoidable and costly legal disputes. The current situation, according to Rafsanjani, underscores the critical need for careful scrutiny and ethical governance in the management of international contracts.
Rafsanjani further criticized the federal government for enabling state governors to access loans without adequately addressing the potential risks involved. He argued that personal interests often drive public officials into signing problematic agreements, drawing a parallel to the infamous P&ID case that has similarly embroiled Nigeria in a protracted legal battle. “CISLAC/TI-Nigeria’s call is a stark reminder of the necessity for vigilance and ethical governance to avoid severe repercussions from contract mismanagement,” he added.
The statement also highlighted the ongoing efforts of CISLAC and Transparency International to promote global transparency and accountability, particularly in light of the P&ID case. The case, which began with an arbitration order in 2017 requiring Nigeria to pay $6.6 billion in fines due to contractual breaches, eventually led to a ballooned payment demand of $11 billion due to accrued interest. Rafsanjani noted that during Nigeria’s legal struggle in London to overturn the order, CISLAC and Transparency International worked closely with both local and international organizations to push for a thorough investigation of all those implicated in undermining Nigeria’s interests.
Despite these advocacy efforts, Rafsanjani expressed disappointment in the previous administration’s failure to act on calls for accountability. However, the global pressure applied by CISLAC and its partners eventually led to a UK court granting Nigeria temporary relief. CISLAC has reiterated its call on President Bola Tinubu and anti-corruption agencies to prosecute all Nigerians and their foreign accomplices, including former senior officials, who were involved in the P&ID scandal for personal gain.
CISLAC/TI-Nigeria’s statement concludes by reflecting broader concerns about the country’s handling of international agreements and the dire consequences of neglecting due diligence. As Nigeria navigates this complex legal landscape, the organization stresses the urgent need for vigilance and ethical governance in contract negotiations to safeguard the nation’s interests.