French Court Seizes Nigerian Government Jets Amid Dispute with Chinese Firm

French court has seized three jets owned by the Nigerian government amid a protracted legal battle with a Chinese company.

The dispute centers around a 2007 contract between Zhongshan Fucheng Industrial Investment and Nigeria’s Ogun State to develop a free-trade zone, which was subsequently terminated between 2015 and 2016. Zhongshan alleges that it was pushed out of the deal through a “campaign of illegal acts.”

The Judicial Court of Paris issued orders for the seizure of the Nigerian jets, which were reportedly undergoing “routine maintenance” at the time. The Nigerian government has condemned the move, asserting that Zhongshan’s actions reflect an intent to “undercut and scam” the African nation.

Bayo Onanuga, a spokesperson for Nigeria’s presidential office, criticized Zhongshan’s actions as part of a broader campaign to seize Nigerian assets abroad.

“This arm-twisting tactic by the Chinese company is the latest in a long list of failed moves to attach Nigerian government-owned assets in foreign jurisdictions,” Onanuga stated.

The dispute began when Ogun State’s agreement with Zhongshan to develop the free-trade zone was cancelled. In March 2021, an arbitration tribunal awarded Zhongshan $74.5 million in compensation.

However, Ogun State reportedly refused to comply with the tribunal’s ruling. In response, Nigerian-owned properties in Liverpool, UK, were recently seized by a UK court as part of the ongoing legal saga.

Adding to the complexity, the United States Court of Appeals recently ruled that Zhongshan could continue its efforts to confiscate Nigerian assets abroad, rejecting Nigeria’s claim of “sovereign immunity.” Nigeria has accused Zhongshan of misrepresenting facts to courts in the UK, the US, and France.

Onanuga defended Nigeria’s position, arguing that Zhongshan’s claims were exaggerated. “When the Ogun State contract was revoked, Zhongshan had done no more than erect a perimeter fence on the land earmarked for the free-trade zone,” he said.

The Nigerian government emphasized its commitment to protecting national assets from what it describes as “predators and shylocks” disguised as investors.

Zhongshan, however, maintains that the Ogun Free Trade Zone project was significant and well-documented, citing its inclusion as a major international investment by the Economist Intelligence Unit.

The seizure of the jets has also sparked domestic controversy in Nigeria. Critics argue that the situation highlights the extravagant use of taxpayer-funded resources amidst the country’s severe economic challenges.

Opposition politician Peter Obi, who ran for president in 2023, described the incident as “embarrassing” and indicative of a lack of sensitivity towards the economic struggles faced by ordinary Nigerians.

The Nigerian government has vowed to contest the French court’s “frivolous order” and to safeguard its assets.

The ongoing legal battle underscores the complex interplay between international business disputes and national sovereignty, with both economic and political implications for Nigeria.

 

This article was created using automation technology and was thoroughly edited and fact-checked by one of our editorial staff members