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

Three jets associated with the Nigerian Government’s presidential air fleet have been seized by authorities in France and Switzerland.

The seizures were a result of a French court ruling that authorized the confiscation of the aircraft due to a longstanding business dispute between Ogun State and a Chinese company, Zhongshan.

The grounded jets include a Dassault Falcon 7X at Paris-Le Bourget airport, a Boeing 737, and an Airbus 330 at Basel-Mulhouse airport in Switzerland. This action is part of enforcing a $74.5 million arbitration award in favor of Zhongshan, as reported by Premium Times.

Sources indicate that the aircraft were undergoing maintenance when the seizure order was issued.

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

The dispute dates back to 2016 when the Ogun State government canceled Zhongshan’s contract to manage an export processing zone.

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

The arbitration tribunal, led by a former UK Supreme Court President, awarded Zhongshan $55.7 million, plus $9.4 million in interest and legal costs totaling £2.86 million.

Despite the federal government’s repeated requests for Ogun State to resolve the issue, no settlement was reached, leading to international legal actions and the seizure of the jets.

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

The dispute between the Ogun State government and Zhongshan began in 2016 after the state decided 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 initially agreed in 2010 to develop and manage Fucheng Industrial Park within the zone, but the deal later fell apart, resulting in the current legal conflict.

This latest development further complicates Nigeria’s situation, as the country also faces the seizure of properties in Liverpool, England, related to the same dispute.

These properties, located at 15 Aigburth Hall Road and Beech Lodge on Calderstones Road, are estimated to be worth between £1.3 million and £1.7 million.

As of now, the Nigerian government has not officially commented on the seizure of its assets.

The court order authorizes Zhongshan to enforce the seizure with the help of bailiffs, who are empowered to take all necessary steps to ensure the jets remain grounded.