French court seizes three Nigerian presidential jets over dispute with Chinese firm

A Chinese company, Zhongshan, has successfully petitioned for the seizure of three Nigerian presidential jets.

The company’s export processing zone management contract was terminated by the Ogun State government in 2016. The seized jets, which are part of Nigeria’s presidential air fleet, are a Dassault Falcon 7X at Le Bourget airport in Paris, a Boeing 737 and an undelivered Airbus 330 at Basel-Mulhouse airport in Switzerland, which was purchased by Nigeria but not yet received.

According to Premium Times, this seizure is a result of the contractual dispute between Zhongshan and the Ogun State government. A French court authorized the seizure of the three presidential jets due to the ongoing dispute between Zhongshan, a Chinese company, and the Ogun State government.

The seizure is a result of the government’s failure to honour a $74.5 million award granted to Zhongshan by an independent arbitral tribunal, chaired by the former President of the UK Supreme Court. Despite the federal government’s efforts to resolve the issue amicably, the Ogun State government has yet to comply with the award.

The court order restricts the movement, sale, or purchase of the jets until Zhongshan receives the awarded amount, leaving the Nigerian government facing consequences for the actions of its subnational entity. Bailiffs have already served papers for each aircraft, and the Nigerian government has yet to comment on the situation. This confiscation follows the recent seizure of Nigerian-owned properties in Liverpool, England, by a UK court in connection with the same dispute. Zhongshan secured charging orders against properties at 15 Aigburth Hall Road and Beech Lodge, 49 Calderstones Road, Liverpool, valued between £1.3 and £1.7 million.

The conflict dates back to 2010 when Zhuhai Zhongfu Industrial Group Co Ltd, Zhongshan’s parent company, and the Ogun Guangdong Free Trade Zone (OGFTZ) entered an agreement to establish Fucheng Industrial Park within the zone. Zhongfu International Investment (NIG) FZE, a subsidiary of Zhongshan, was registered as a free trade zone enterprise within the OGFZ in 2011.

However, in 2016, the Ogun State Government moved to terminate Zhongfu’s appointment as interim manager of the zone, leading to the current legal battle. Zhongfu initiated investment treaty arbitration against Nigeria under the bilateral investment treaty between China and Nigeria. On March 26, 2021, the tribunal issued a final award of $55.7 million, plus interest and costs, payable by Nigeria to Zhongshan. Despite federal government efforts to resolve the dispute, no settlement has been reached.