A French court has ordered the seizure of three Nigerian presidential jets as part of a long-standing contractual dispute between a Chinese company, Zhongshan, and the Ogun State government.
The seized aircraft include a Dassault Falcon 7X stationed at Le Bourget airport in Paris, a Boeing 737, and an undelivered Airbus 330 located at Basel-Mulhouse airport in Switzerland.
This legal action stems from a conflict dating back to 2016, when the Ogun State government terminated Zhongshan’s export processing zone management contract.
The termination led to an arbitration process, resulting in a $74.5 million award in favor of Zhongshan by an independent arbitral tribunal, chaired by a former President of the UK Supreme Court.
Despite the ruling, the Ogun State government has yet to comply with the award, leading Zhongshan to seek enforcement through the seizure of Nigerian assets abroad.
The court’s order effectively restricts any movement, sale, or further purchase of the jets until the Nigerian government fulfills the financial obligations imposed by the arbitration award.
This has placed the Nigerian government in a precarious position, as the assets seized belong to the federal government’s presidential air fleet, but the dispute originates from a state-level agreement.
Bailiffs have already served legal papers for the seizure of the aircraft, adding pressure on Nigerian authorities to resolve the matter.
The federal government has reportedly been attempting to address the issue diplomatically, but so far, no resolution has been achieved.
This seizure follows a similar legal action in the United Kingdom, where Nigerian-owned properties in Liverpool were confiscated in connection with the same dispute.
The properties, located at Aigburth Hall Road and Beech Lodge on Calderstones Road, are valued between £1.3 and £1.7 million.
The origins of this conflict trace back to 2010, when Zhuhai Zhongfu Industrial Group Co Ltd, Zhongshan’s parent company, entered into an agreement with the Ogun Guangdong Free Trade Zone (OGFTZ) to establish Fucheng Industrial Park within the zone.
However, the relationship soured in 2016 when the Ogun State Government removed Zhongfu as interim manager of the zone, triggering the legal battles that have since ensued.
Zhongfu initiated investment treaty arbitration under the bilateral investment treaty between China and Nigeria, which culminated in the 2021 tribunal decision mandating the substantial financial award to Zhongshan.
Despite federal-level efforts to mediate the conflict, the Ogun State government’s non-compliance has resulted in the current international legal crisis.
As the situation unfolds, the Nigerian government faces mounting pressure to resolve the dispute and prevent further damage to its assets and international reputation.
The implications of this case could have far-reaching effects on Nigeria’s foreign relations and its management of state-level contracts with international partners.
