French Court Seizes Nigerian Presidential Jets Over Disputes Between Ogun, Chinese Firm

Three jets linked to the Federal Government’s presidential air fleet have been seized by authorities in France and Switzerland.

The seizures followed a ruling by a French court, which authorised the confiscation of the aircraft due to a long-standing business dispute between Ogun State and a Chinese company, Zhongshan.

The jets, which include a Dassault Falcon 7X stationed at Paris-Le Bourget airport, a Boeing 737, and an Airbus 330 located at Basel-Mulhouse airport in Switzerland have been grounded as part of the enforcement of a $74.5 million arbitration award in favour of Zhongshan according Premium Times.

According to sources, these aircraft were undergoing maintenance when the order for their seizure occurred.

The Nigerian government reportedly paid over $100 million for the Airbus A330, which has not yet been delivered to the country.

The seizure stems from a 2016 dispute when the Ogun State government revoked Zhongshan’s contract to manage an export processing zone.

Following the termination, Zhongshan initiated an investment treaty arbitration against Nigeria, citing the bilateral investment treaty between China and Nigeria.

The arbitration tribunal, chaired by a former President of the UK Supreme Court, awarded Zhongshan $55.7 million, with an additional $9.4 million in interest and legal costs amounting to £2.86 million.

Despite repeated pleas from the federal government for Ogun State to resolve the dispute, no settlement was reached, leading to the international legal actions that resulted in the seizure of the jets.

The French court’s order explicitly prohibits the movement, sale, or purchase of the aircraft until Zhongshan receives its compensation.

The Ogun State government and Zhongshan have been embroiled in a bitter dispute since 2016, following the state’s decision to replace Zhongshan as the interim manager of the Ogun Guangdong Free Trade Zone.

Zhongshan’s parent company, Zhuhai Zhongfu Industrial Group Co Ltd, had entered into an agreement in 2010 to develop and manage Fucheng Industrial Park within the zone, a deal that later unraveled, leading to the current legal battle.

This latest development adds to Nigeria’s woes, as the country faces the repercussions of the dispute, not just in the seizure of its jets but also in the confiscation of properties in Liverpool, England.

These properties, located at 15 Aigburth Hall Road and Beech Lodge on Calderstones Road, were seized by a UK court in connection with the same dispute.

The properties are estimated to be worth between £1.3 million and £1.7 million.

As of now, the Nigerian government has yet to officially comment on the seizure of its assets.

The court order, as documented, grants Zhongshan the authority to enforce the seizure with the assistance of bailiffs, who are authorised to take all necessary measures to ensure the jets remain grounded.