A French court has ordered the seizure of three presidential jets belonging to the Nigerian government. The court ruling is linked to an unresolved business dispute involving Ogun State, a southwestern region of Nigeria, and Zhongshan, a Chinese company.
According to a report from PREMIUM TIMES, the jets include a Dassault Falcon 7X located at Le Bourget airport in Paris, a Boeing 737, and an Airbus 330 stationed at Basel-Mulhouse airport in Switzerland.
All three aircraft are part of Nigeria’s presidential fleet and were undergoing maintenance at the time of their confiscation. The Airbus 330, notably, was newly purchased by the Nigerian government but had yet to be delivered.
The dispute stems from a revoked management contract between Ogun State and Zhongshan. In 2016, the Ogun State government canceled Zhongshan’s contract to manage an export processing zone in the region.
As a result, an independent arbitral tribunal, led by the former President of the UK Supreme Court, awarded Zhongshan $74.5 million in compensation. However, the Ogun State government has not honored this payment, leading Zhongshan to pursue legal action internationally.
“The seizure of the presidential jets is a result of an application by Zhongshan,” reported PREMIUM TIMES. The court’s decision prevents the movement, sale, or purchase of the jets until the $74.5 million owed to Zhongshan is paid. Papers for the confiscation of the aircraft have already been served by bailiffs.
The report added, “An independent arbitral tribunal chaired by the former President of the UK Supreme Court awarded Zhongshan about $74.5 million in compensation, but the Ogun State government, which has a dispute with Zhongshan, has yet to honour the award.
“The Federal Government is facing this backlash over an action taken by one of its subnationals with which Zhongshan has a business dispute.
“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. All are currently undergoing maintenance. The Nigerian government reportedly paid over $100 million for the Airbus.
“The court order prohibits the movement, sale, or purchase of the jets until Zhongshan receives the awarded $74.5 million. Bailiffs have served papers for each aircraft.
“The Nigerian government is yet to comment on this development.
“The confiscation of the planes follows the recent seizure of Nigerian-owned buildings in Liverpool, England, by a UK court in relation to the same dispute with Zhongshan. The properties against which Zhongshan secured charging orders are located at 15 Aigburth Hall Road, Liverpool and Beech Lodge, 49 Calderstones Road, Liverpool, estimated by the company to be worth between £1.3 and £1.7 million.
“The Ogun State government and Zhongshan have been locked in a long-drawn battle over the management of an export processing zone in the South-west state.
“On 29 June 2010, Zhuhai Zhongfu Industrial Group Co Ltd, the parent company of Zhongshan, and the Ogun Guangdong Free Trade Zone (OGFTZ) entered into a framework agreement on the establishment of Fucheng Industrial Park within the zone. The agreement gave Zhuhan the right to develop and run Fucheng Park within the zone.
“The Nigeria Export Processing Zones Authority registered Zhongfu International Investment (NIG) FZE, a subsidiary of Zhongshan, as a free trade zone enterprise within the OGFZ in 2011. The Ogun State government later appointed Zhongfu as the interim manager/administrator of the zone.”
