A French court has ordered the seizure of three Nigerian presidential jets following a legal dispute involving the Ogun State government and the Chinese company Zhongshan Fucheng Industrial Investment Co. Ltd.
Sources informed PREMIUM TIMES that the court has prohibited the movement, sale, or transfer of these aircraft until Zhongshan receives the $74.5 million it was awarded in arbitration.
The jets involved in the seizure include a Dassault Falcon 7X stationed at Le Bourget Airport in Paris, a Boeing 737, and an Airbus A330 at Basel-Mulhouse Airport in Switzerland.
The Nigerian government reportedly paid over $100 million for the Airbus. The aircraft are currently undergoing maintenance.
The seizure stems from a long-standing dispute between Zhongshan and the Ogun State government over the management of an export processing zone. Zhongshan, whose export processing zone management contract was revoked in 2016, was awarded compensation by an independent arbitral tribunal chaired by a former UK Supreme Court President. Despite this, Ogun State has not fulfilled its obligation to pay the awarded amount.
The Federal Government of Nigeria is now facing repercussions due to the actions of Ogun State. The court’s decision follows a recent seizure of Nigerian-owned properties in Liverpool, England, related to the same dispute.
Zhongshan’s legal battle began in 2016 when Ogun State terminated its contract with Zhongshan, leading to arbitration under the bilateral investment treaty between Nigeria and China.
In March 2021, an arbitral tribunal issued a final award of $55.7 million plus interest and costs, but Nigeria has yet to settle the amount.
The French court’s order is intended to secure Zhongshan’s claim and prevent any further action on the aircraft until the financial dispute is resolved. The Nigerian government has yet to comment on the situation.