Three presidential jets belonging to the Federal Government of Nigeria have been seized by a French court over a failed business deal between the Ogun State Government and Zhongshan, a Chinese company.
According to Premium Times, the seized presidential jets include a Dassault Falcon 7X at Le Bourget airport in Paris, a Boeing 737, and an Airbus 330 at Basel-Mulhouse airport in Switzerland.
The court authorised the seizure of the aircraft following an application by the company, whose business relationship with Ogun State Government dates back to 2010.
Things went sour between the parties in 2016 when the state government revoked the company’s export processing zone management contract.
How it all started
In June 2010, the Ogun Guangdong Free Trade Zone (OGFTZ) a joint venture between the Ogun State Government and Chinese governments — established in 2008 — entered into a framework agreement with Zhuhai Zhongfu Industrial Group Co Ltd, the parent company of Zhongshan.
The agreement gave the company the right to develop and run Fucheng Park within the zone.
In 2011, the state government appointed the Chinese company as the interim manager/administrator of the zone.
However, in 2016, the Ogun State Government terminated Zhongshan’s appointment and appointed another manager for the free trade zone.
The development prompted the Chinese company to launch an investment treaty arbitration against Nigeria citing the bilateral investment treaty between the West African country and China.
After a protracted legal battle, the Judicial Court of Paris in March 2024, ruled in favor of Zhongshan, awarding the company about $74.5 million in compensation, but the Ogun State Government has yet to honour the award.
Although the court authorised the seizure of the three presidential jets, it prohibits the sale or purchase of the aircraft until Zhongshan receives the awarded $74.5 million.
Ogun Govt reacts
In response to the issue, the Ogun State Government accused the Chinese company of obtaining court orders “without notice being duly given to the Federal Government of Nigeria, Ogun State or their legal counsels.”
In a statement signed by Kayode Makinde, the Special Adviser on Media and Strategy to Governor Dapo Abiodun, the state government condemned Zhongshan for attaching Federal Government assets in foreign jurisdictions to their legal battle.
“Each of the three aircraft is used solely for sovereign purposes and as such are immune from attachment under international and French law. In obtaining the provisional attachments, Zhongshan deliberately withheld information from the Federal Government of Nigeria, Ogun State, and their legal counsel.
“Shockingly, it also appears to have misled the Judicial Court of Paris as to the use and nature of the assets it seeks to attach and not made full disclosure to the court as required by law,” the statement reads in part.
Explaining why the state government has yet to honour the award, Makinde said Governor Abiodun’s government could not have honoured the court’s “unconscionable and baseless decision” because it would dissipate the state’s commonwealth.
“The Arbitral Panel awarded over $60 million against the Federal Government of Nigeria (FGN) which was a co-Defendant, when all Zhongshan had done was to build a perimeter fence around the free-trade zone. Needless to say this was a bad/unfair decision.
“The present State Administration could not in all good conscience allow such an unconscionable and baseless decision, which would dissipate the commonwealth of the good people of Ogun State, to stand.”
He also alleged that Ogun State had “also engaged Zhongshan in settlement discussions on reasonable terms,” but the Chinese company has been frustrating the efforts.
“Zhongshan’s initial reasonable readiness to consider Ogun State’s offer, was surprisingly reversed by the second day, with an insistence on the payment of the full debt. This led to a breakdown of the mediation, with parties agreeing to meet again in the first quarter of this year,” Makinde said.
The Ogun State Government also apologised to the Federal Government for any embarrassment the seizure of the presidential jets may have caused Nigeria.
Makinde assured that necessary legal steps have been taken to ensure “this spurious and baseless order” is vacated within the shortest possible time.
