French Court Seizes Three Nigerian Presidential Jets Over Long-Standing Business Dispute

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In a shocking move, a French court has authorized the seizure of three jets linked to the Nigerian Presidential Air Fleet, citing a long-standing business dispute between Ogun State and Chinese company, Zhongshan.

The dispute, which dates back to 2016, has resulted in an arbitration award of $74.5 million in favor of Zhongshan, leading to the seizure of the aircraft.

The seized jets include a Dassault Falcon 7X stationed at Paris-Le Bourget airport, a Boeing 737, and an Airbus 330 located at Basel-Mulhouse airport in Switzerland. The aircraft were undergoing maintenance when the order for their seizure occurred, and the Nigerian government reportedly paid over $100 million for the Airbus A330, which has not yet been delivered to the country.

The dispute began in 2016 when the Ogun State government revoked Zhongshan’s contract to manage an export processing zone. Zhongshan initiated an investment treaty arbitration against Nigeria, citing the bilateral investment treaty between China and Nigeria.

The arbitration tribunal, chaired by a former President of the UK Supreme Court, awarded Zhongshan $55.7 million, with an additional $9.4 million in interest and legal costs amounting to £2.86 million.

Despite repeated pleas from the federal government for Ogun State to resolve the dispute, no settlement was reached, leading to international legal actions. The French court’s order explicitly prohibits the movement, sale, or purchase of the aircraft until Zhongshan receives its compensation.

This latest development adds to Nigeria’s woes, as the country faces repercussions from the dispute, including the confiscation of properties in Liverpool, England. The properties, estimated to be worth between £1.3 million and £1.7 million, were seized by a UK court in connection with the same dispute.

The seizure of the presidential jets has sparked concerns about Nigeria’s international reputation and its ability to resolve disputes amicably. The Nigerian government has yet to comment on the seizures, but sources indicate that efforts are being made to resolve the dispute and retrieve the seized assets.

The dispute between Ogun State and Zhongshan dates back to 2010, when Zhongshan’s parent company, Zhuhai Zhongfu Industrial Group Co Ltd, entered into an agreement to develop and manage Fucheng Industrial Park within the Ogun Guangdong Free Trade Zone. However, the deal later unraveled, leading to the current legal battle.

The seizure of the presidential jets is a significant blow to Nigeria’s image, and the country faces a daunting task in resolving the dispute and retrieving its seized assets. As the situation unfolds, one thing is clear: Nigeria must take immediate action to address the dispute and prevent further repercussions.

StreetReporters.ng

This post has already been read at least 11913 times!