Professor Ademola Abbas, a specialist in International Law, has urged the Federal Government to reassess the Bilateral Investment Treaty (BIT) signed with China in 2001, which fosters investment between the two nations.
His call follows a recent ruling by a French court allowing Zhongshan Fucheng Industrial Investment Co. Limited to seize Nigerian presidential jets as security for claims related to a long-standing arbitration dispute with the Ogun State government.
Appearing on Channels Television’s Inside Sources with Laolu Akande on Friday, Abbas emphasized the need for stringent controls in investment agreements. “When countries seek investments, they sometimes relax their standards too much,” he noted.
He criticized the Nigerian government for potentially compromising its interests in its efforts to attract foreign direct investments (FDIs), describing the situation as akin to “killing itself with poison out of courtesy.”
Abbas particularly criticized Article 9 of the BIT, calling it a “misnomer” and a “grievous error.”
He explained that this article unfairly allows third parties, not directly involved in the treaty, to pursue claims against Nigeria.
“Article 9 permits resolution mechanisms for conflicts involving any of the countries and their nationals rather than just conflicts between the two countries,” Abbas said.
He argued that the treaty should have limited disputes to arbitration between Nigeria and China directly.
Without Article 9, he suggested, Zhongshan Fucheng would have pursued its claims through diplomatic channels or international courts rather than seizing assets.
“To address the current issue, the government should re-evaluate such treaties and understand the arbitration clauses involved,” Abbas advised.
He also recommended improved coordination between federal and state authorities, noting that the Chinese company likely targeted Ogun State due to the perception that it would be a more fruitful avenue for claims.
Abbas’s comments highlight the need for Nigeria to carefully review and strengthen its investment treaties to avoid similar disputes in the future.
