In a dramatic escalation of Nigeria’s international legal woes, a French court has authorised the seizure of three presidential jets linked to the Federal Government of Nigeria over an unresolved business dispute between Ogun State and a Chinese firm, Zhongshan.
DAILY MONITOR reports that the seizure is part of a broader legal battle that has already seen Nigerian-owned properties in the United Kingdom confiscated.
The aircraft, which are part of the Nigerian presidential air fleet, include a Dassault Falcon 7X located at Le Bourget Airport in Paris, a Boeing 737, and an Airbus 330 stationed at Basel-Mulhouse Airport in Switzerland.
It was further gathered that these jets, currently undergoing maintenance, have been ordered grounded by the court until Zhongshan receives $74.5 million in compensation, as awarded by an independent arbitral tribunal.
The legal tussle stems from a 2016 decision by the Ogun State government to revoke Zhongshan’s export processing zone management contract, leading to a protracted legal battle that has now spilled over into international courts.
An arbitral tribunal, chaired by a former President of the UK Supreme Court, awarded the Chinese firm $74.5 million in compensation, but the Ogun State government has yet to honor this award.
The Federal Government of Nigeria now finds itself entangled in this dispute due to actions taken by one of its subnational entities. Despite repeated pleas from the federal authorities for an amicable resolution, the Ogun State government has not settled the matter, resulting in the French court’s drastic action.
The seizure of the presidential jets follows the confiscation of Nigerian-owned properties in Liverpool, England.
These properties, located at 15 Aigburth Hall Road and Beech Lodge, 49 Calderstones Road, were seized under charging orders secured by Zhongshan, with their combined value estimated to be between £1.3 and £1.7 million.
The origins of this conflict date back to 2010, when Zhuhai Zhongfu Industrial Group Co Ltd, the parent company of Zhongshan, entered into a framework agreement with the Ogun Guangdong Free Trade Zone (OGFTZ) to establish Fucheng Industrial Park.
The Nigeria Export Processing Zones Authority registered Zhongfu International Investment (NIG) FZE, a subsidiary of Zhongshan, as a free trade zone enterprise within OGFTZ in 2011. Zhongfu was appointed as the interim manager of the zone, but in 2016, the Ogun State government moved to terminate its appointment, igniting the ongoing legal battle.
In March 2021, an arbitral tribunal issued a final award in favor of Zhongshan, including $55.7 million in compensation, $9.4 million in interest, and £2.8 million in legal costs.
Despite this ruling, no settlement has been reached.
The Enforcement Judge at the Paris Judicial Court has firmly prohibited the movement, sale, or purchase of the jets until the awarded sum is paid, leaving the Nigerian government with limited options to resolve the situation and reclaim its assets.
