French Court Seizes Nigerian Government Jets Amid Dispute with Chinese Company

A French court has seized three jets belonging to the Nigerian government in connection with a longstanding legal battle involving a Chinese company, Zhongshan Fucheng Industrial Investment. The dispute centers around a 2007 contract between Zhongshan and Ogun State in southwestern Nigeria. The agreement was aimed at developing a free-trade zone that would host a massive industrial park designed to attract global investors. However, the project was abruptly halted between 2015 and 2016, leading to a legal confrontation between the two parties.

Zhongshan has claimed that it was forced out of the deal through what it described as a “campaign of illegal acts” perpetrated by Nigerian authorities. This allegation has been at the core of the ongoing dispute, which has now escalated to the international stage with the seizure of Nigeria’s presidential planes in France. According to the Financial Times, the Judicial Court of Paris granted Zhongshan’s request to ground the aircraft as part of its legal strategy to compel Nigeria to address the claims.

Nigerian Government Condemns Seizure, Accuses Zhongshan of Scamming

In response to the seizure of its jets, the Nigerian government has issued a strong condemnation, accusing Zhongshan Fucheng Industrial Investment of engaging in a scheme to “undercut and scam” an African government. Nigerian officials have expressed outrage over the incident, asserting that the Chinese company’s actions are part of a broader strategy to extort the country. The government has vowed to challenge the court’s decision, viewing it as an affront to Nigeria’s sovereignty and a gross violation of international norms.

The three planes, which were undergoing routine maintenance in France at the time of the court order, have been grounded, causing significant disruption to Nigeria’s presidential fleet. The Nigerian government has emphasized that these aircraft were not involved in any commercial activity and were solely used for state functions. The situation has drawn widespread attention, highlighting the complexities of international business disputes and the potential ramifications for bilateral relations between nations.

Bayo Onanuga Accuses Zhongshan of Attempting to Seize National Assets Abroad

In a heated dispute, Nigeria’s presidential office has accused the Chinese company, Zhongshan, of launching a broader campaign to seize Nigerian assets in foreign countries. According to a statement by presidential spokesperson Bayo Onanuga, this move is seen as part of a persistent effort by the Chinese firm to claim Nigerian government-owned properties in various foreign jurisdictions. Onanuga described Zhongshan’s tactics as “arm-twisting,” emphasizing that this is not the first time the company has attempted to attach Nigerian assets abroad.

The conflict traces back to a March 2021 arbitration tribunal, chaired by the president of the UK Supreme Court, which awarded $74.5 million to Zhongshan as compensation in a contractual dispute involving the Ogun Free Trade Zone. Despite the tribunal’s decision, Ogun State has reportedly refused to pay the amount. The disagreement escalated when Nigerian-owned buildings in Liverpool were seized by a UK court, as reported by Nigerian newspaper Premium Times. The tensions reached a new height when, last Friday, the United States Court of Appeals allowed Zhongshan to proceed with its efforts to confiscate Nigeria’s assets overseas, rejecting Nigeria’s defense of sovereign immunity.

Dispute Over the Ogun Free Trade Zone Contract

The crux of the dispute centers on a contract for the development of the Ogun Free Trade Zone, which was eventually revoked by the Ogun State government. The Nigerian government has accused Zhongshan of misrepresenting the facts in court proceedings in the UK, US, and France. According to Onanuga, at the time of the contract’s revocation, Zhongshan had only managed to construct a perimeter fence on the designated land, far from fulfilling the obligations stipulated in the contract.

Free-trade zones, like the one in Ogun State, are special areas where goods can be imported, exported, and stored with reduced or no taxes. Nigeria has several such zones, including one in Lagos, where the Dangote Petroleum Refinery, built by Africa’s richest man, Aliko Dangote, recently commenced operations. Zhongshan, however, disputes the Nigerian government’s claims, arguing that the Ogun Free Trade Zone was more than just a fenced area, and was recognized as a significant international investment by the Economist Intelligence Unit. The ongoing legal battles have fueled tensions between the two parties, with both sides remaining steadfast in their respective positions.

Broader Implications and Political Fallout

The ongoing legal tussle with Zhongshan has broader implications for Nigeria, particularly in its diplomatic relations and domestic political landscape. China remains Nigeria’s largest import partner, and the two countries have traditionally maintained strong trade relations. However, the recent developments have cast a shadow over this partnership, with the Nigerian government expressing its resolve to protect national assets from what it describes as predatory practices by foreign entities.

Domestically, the situation has ignited a public debate about the allocation of resources by the Nigerian government, particularly in light of the country’s economic struggles. Opposition politician Peter Obi, who ran unsuccessfully for president in 2023, criticized the news that three of Nigeria’s jets were seized in connection with the dispute. Obi described the situation as “embarrassing” and indicative of the government’s insensitivity to the hardships faced by ordinary Nigerians amidst a deepening economic crisis. The controversy has also sparked discussions about whether President Bola Tinubu should retain multiple taxpayer-funded jets while the nation grapples with economic challenges, highlighting the intersection of international disputes and domestic political concerns in Nigeria.