Zhongshan Fucheng Industrial Investment Co. Ltd, the Chinese firm at the center of a high-stakes legal dispute with Nigeria, has released one of the three Nigerian Airbus A330 aircraft detained in France.
The release follows a court order obtained from a Paris judicial court, which had led to the seizure of the aircraft due to an ongoing contract dispute.
The release was announced as a gesture of goodwill, acknowledging the need for Nigerian President Ahmed Bola Tinubu to use the aircraft for an upcoming meeting with French President Emmanuel Macron.
In a statement, a spokesperson for Zhongshan explained the company’s decision:
“Zhongshan has consistently acted reasonably and fairly in a legal dispute with Nigeria, which it did not initiate. The company has been informed that an Airbus A330, currently detained in France due to a French court order obtained by Zhongshan, is needed by the President of Nigeria for his upcoming meeting with President Macron next week. As a goodwill gesture, Zhongshan has lifted the seizure, allowing the aircraft to be used for the President’s trip.”
The legal conflict between Zhongshan and Nigeria dates back to a disagreement over a free trade zone project in Ogun State. The dispute escalated in 2016, leading to an arbitration ruling in favor of Zhongshan, which was later upheld by courts in several countries, including France. Despite Nigeria’s claims of state immunity, the courts ruled that the arbitration award of approximately $70 million was enforceable.
The Nigerian government has responded with legal and diplomatic efforts to secure the release of the seized aircraft.
Kamarudeen Ogundele, Special Adviser to the President on Communication and Publicity at the Office of the Attorney General of the Federation and Minister of Justice, stated that the government is actively pursuing both legal and diplomatic avenues to resolve the issue.
Ogundele emphasized the sovereign nature of the aircraft, asserting that they are immune from attachment due to their exclusive use for sovereign purposes.
Zhongshan, while asserting its rights under international law, reiterated its commitment to reaching a reasonable settlement with the Nigerian government. The company remains confident in the arbitral panel’s ruling and the subsequent court decisions that have upheld the award of compensation.
“Zhongshan has only sought to assert its rights under international law and remains confident in its case. The independent arbitral panel found unanimously in our favor, and courts in several countries have affirmed the panel’s award of compensation. The French court had all the relevant facts when it made its decision,” the spokesperson concluded.
The release of the aircraft is seen as a positive step towards potential negotiations, with both parties now having an opportunity to resolve the dispute amicably.
However, the underlying legal and diplomatic challenges remain complex, with significant implications for international investment and diplomatic relations.