JUST-IN: French court seizes Nigerian presidential jets

A French court has authorized the seizure of three jets from Nigeria’s presidential air fleet due to a contractual dispute between Zhongshan, a Chinese company, and the Ogun State government.

The affected jets include 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.

This legal action stems from a disagreement over the termination of Zhongshan’s export processing zone management contract by the Ogun State government in 2016.

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.