The Federal Government of Nigeria and Ogun State are working together to overturn a Paris court ruling that has led to the seizure of three presidential jets. The court order was obtained by a Chinese firm, Zhongshan Fucheng Industrial Investment Company, in connection with a long-standing contractual dispute.
The Nigerian presidency has described the court orders, issued on March 7 and August 12, 2024, as a “frivolous attempt” to deprive the country of its assets. The orders, linked to a legal dispute between Ogun State and Zhongshan over a free-trade zone agreement, have sparked swift reactions from both the federal and state governments.
The legal wrangling dates back to a contract signed in 2007 between Ogun State and Zhongshan Fucheng to manage a free-trade zone. However, the agreement quickly soured, leading to a dispute in 2015. In 2016, arbitration began to resolve the matter. By 2019, the arbitration had concluded, with the Arbitral Panel awarding over $60 million against the Federal Government, even though Zhongshan had reportedly only built a perimeter fence at the site.
Ogun State, dissatisfied with the arbitration outcome, decided to resist enforcement of the judgment. This resistance, according to sources, was successful in several jurisdictions, including the United States and the United Kingdom. There are ongoing appeals against recognition orders in these countries.
Despite efforts to settle the matter out of court, including a meeting in London in September 2023, the talks between Ogun State and Zhongshan broke down when the company insisted on full payment of the arbitration debt. Since then, the Chinese company has pursued aggressive enforcement of the judgment, leading to the recent Paris court orders.
The seizure of the jets has drawn comparisons to a similar legal case involving Process and Industrial Development Limited (P&ID), where Nigeria narrowly avoided paying an $11 billion judgment debt. The current case bears striking similarities, with the Federal Government accusing Zhongshan of employing underhanded tactics to seize assets in foreign jurisdictions.
Special Adviser to the President on Information and Strategy, Bayo Onanuga, made it clear in a statement that Nigeria does not recognize the legitimacy of the court orders, as the government was never formally notified of the legal proceedings in Paris. He stated, “The Federal Government is not under any contractual obligation with the company. The case in which Zhongshan is trying to use every unorthodox means to strip our offshore assets is between the company and Ogun State Government.”
The Nigerian government maintains that the jets, which are part of the presidential fleet, should be immune from seizure under international law due to their sovereign nature. The jets were undergoing routine maintenance in France when the court order was issued.
The Federal Government and Ogun State are working to have the court orders overturned as soon as possible. Both governments have expressed their willingness to reach an amicable resolution with Zhongshan, despite the breakdown in earlier negotiations. Ogun State has reportedly sent a letter to Zhongshan in a renewed effort to resolve the issue, but the company responded only after securing the latest court order.
Ogun State’s Special Adviser on Media and Strategy, Kayode Akinmade, described the legal process as “fraudulent” and accused Zhongshan of misleading the Paris court. He explained that the company failed to disclose vital information about the nature of the assets it sought to seize, namely that the jets are used for sovereign purposes and are protected under international law.
In his statement, Akinmade added, “This is the latest in a series of ill-advised attempts by Zhongshan to attach Nigerian-owned assets in foreign jurisdictions, none of which have to date led to the recovery of any sums from Nigeria.”
The Ogun State government, alongside the Federal Government, has taken immediate steps to ensure that the court orders are lifted and that the jets are released as soon as possible.
