In a shocking turn of events, a French court has authorized the seizure of three Nigerian presidential jets, valued at millions of dollars, in a dispute between the Nigerian government and a Chinese company, Zhongshan.
The controversy stems from a contractual dispute between Zhongshan and the Ogun State government in 2016, which led to the termination of Zhongshan’s export processing zone management contract. The dispute has been ongoing for over a decade, with the parties failing to reach a settlement.
The seized jets, which 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, were purchased by Nigeria but have not been received due to the dispute.
According to reports, Zhongshan secured an award of $74.5 million from an independent arbitral tribunal chaired by the former President of the UK Supreme Court, citing the Ogun State government’s failure to honor its contractual obligations. The tribunal’s ruling was made in 2021, but the Nigerian government has yet to comply with the award.
The seizure of the jets is a result of the court’s decision to restrict their movement, sale, or purchase until Zhongshan receives the awarded amount. Bailiffs have already served papers for each aircraft, and the Nigerian government has yet to comment on the situation.
This development comes on the heels of a similar seizure of Nigerian-owned properties in Liverpool, England, by a UK court in connection with the same dispute. Zhongshan secured charging orders against properties valued between £1.3 and £1.7 million.
The conflict between Zhongshan and the Ogun State government dates back to 2010, when they entered an agreement to establish Fucheng Industrial Park within the Ogun Guangdong Free Trade Zone (OGFZ). However, in 2016, the Ogun State Government terminated 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, and on March 26, 2021, the tribunal issued a final award of $55.7 million, plus interest and costs, payable by Nigeria to Zhongshan.
The seizure of the presidential jets is a significant blow to Nigeria’s diplomatic efforts and raises questions about the country’s ability to resolve disputes with foreign companies. The situation remains uncertain, with both parties locked in a bitter dispute that shows no signs of resolution.
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