The Civil Society Legislative Advocacy Centre (CISLAC) Monday called on the federal and state governors to prioritise due diligence and legal consultations in contract negotiations.
This appeal came in the wake of the recent seizure of three presidential jets following a court order by a French court aftermath of a contract dispute between the Ogun State Government and the Chinese firm Zhongshan Fucheng Industrial Investment Co. Ltd.
Its Executive Director, Auwal Musa Rafsanjani in a statement expressed grave concern over the escalating legal battle, which stems from a 2007 agreement for the development of the Ogun Free Trade Zone.
Rafsanjani emphasised that the fallout from the poorly managed contract had resulted in significant financial losses and tarnished Nigeria’s international reputation.
He noted that State governors and government officials must fully understand the legal and ethical complexities of international agreements before entering into them.
Rafsanjani criticised the federal government for allowing state governors to access loans without adequately addressing potential risks.
He pointed out that personal interests often lead public officials into problematic agreements, drawing parallels to the notorious P&ID case.
Rafsajani noted: “Nigeria is already grappling with numerous socio-economic challenges and the last thing it needs is to be entangled in costly legal disputes that could have been avoided with proper due diligence.
“CISLAC calls 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 diligently monitored and advocated for global transparency and accountability, particularly since the initial arbitration order in the P&ID case in 2017, 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 noted.
Continuing, “During the legal battle in London to overturn this order, CISLAC and Transparency International collaborated with local and international organizations to demand a comprehensive investigation into all individuals implicated in sabotaging Nigeria’s interests. The prior administration’s failure to act on these calls was disheartening.