A French court has seized Nigerian presidential jets due to an unresolved legal dispute with a Chinese company, highlighting ongoing tensions.
Nigeria has suffered a notable legal defeat as a French court granted permission for the confiscation of three presidential airplanes associated with the country’s Federal Government.
As part of a larger legal dispute with Zhongshan, a Chinese company that had its export processing zone management contract annulled by the Ogun State government in 2016, this action was taken.
Among the confiscated airplanes were a Dassault Falcon 7X that was taken at Le Bourget Airport situated in Paris, aside from both a Boeing 737 and an Airbus 330 located at Basel-Mulhouse Airport found in Switzerland. The Airbus 330, which Nigeria acquired but has not yet received delivery of it, is included. These aircraft are part of Nigeria’s presidential air fleet; they were being maintained when seized.
In 2016, a disagreement between Zhongshan and the Ogun State government led to legal proceedings. Following the cancellation of their contract, Zhongshan filed for investment treaty arbitration against Nigeria on grounds of a bilateral agreement with China. In March 2021, an impartial tribunal headed by the former head of UK’s Supreme Court granted Zhonshan about $74.5 million in damages; nevertheless, there has been no payment from Ogun State authorities as yet.
Although the conflict mainly involves the Ogun State government, the Federal Government of Nigeria is now also dealing with repercussions as a result of its affiliation with this regional body. A legal mandate has been issued that restricts any transfer, vending or additional procurement regarding these confiscated airplanes until Zhongshan receives adequate remuneration from the court hearing verdict. All aircraft have already been served judicial documents by law enforcement officials.
The occurrence is not an isolated event as Zhongshan also secured charging orders on Nigerian-owned properties in Liverpool, England. The affected real estate, valued between £1.3 million and £1.7 million, was seized by a UK court relating to the same dispute at hand.
The legal dispute currently underway can be traced back to an agreement formed in 2010 between Zhuhai Zhongfu Industrial Group Co Ltd, the parent company of Zhongshan, and the Ogun Guangdong Free Trade Zone (OGFTZ). The terms allowed for the development and administration of Fucheng Industrial Park by Zhongshan within OGFTZ.
The present legal and financial crisis is believed to have been caused by the Ogun State government’s reported termination of Zhongshan’s management contract in 2016.
Despite reports suggesting that the Federal Government of Nigeria had been urging the Ogun State government to settle their dispute with Zhongshan peacefully, no official statement has yet been given regarding the recent seizures.
Despite efforts to reach a settlement, the current situation in Nigeria has significant implications for its international relations and assets as no agreement has been reached.
The intricacy of international arbitration and the possible consequences for countries that fail to resolve contractual conflicts with foreign parties in a timely and harmonious manner is highlighted by this situation.
