The Chinese company Zhongshan has successfully petitioned for the seizure of three Nigerian presidential jets.
The dispute originated from the termination of Zhongshan’s export processing zone management contract by the Ogun State government in 2016. The jets in question include a Dassault Falcon 7X located at Le Bourget Airport in Paris, a Boeing 737, and an undelivered Airbus 330 at Basel-Mulhouse Airport in Switzerland.
The seizure follows a contractual dispute between Zhongshan and the Ogun State government. A French court has authorized the seizure due to the ongoing conflict and the Ogun State government’s failure to comply with a $74.5 million award granted to Zhongshan by an independent arbitral tribunal, chaired by a former UK Supreme Court President.
Despite efforts by the federal government to resolve the issue, the Ogun State government has not yet adhered to the tribunal’s decision. The court order prohibits the movement, sale, or purchase of the jets until Zhongshan receives the awarded amount, impacting the Nigerian government due to the actions of its state entity.
Bailiffs have served notices for each aircraft, and the Nigerian government has yet to issue a comment on the situation. This seizure follows a recent UK court action where Nigerian-owned properties in Liverpool were seized in connection with the same dispute.
Zhongshan had also secured charging orders against properties in Liverpool, including 15 Aigburth Hall Road and Beech Lodge at 49 Calderstones Road, valued between £1.3 and £1.7 million.
The conflict traces back to 2010, when Zhongshan’s parent company, Zhuhai Zhongfu Industrial Group Co Ltd, and the Ogun Guangdong Free Trade Zone (OGFTZ) entered into an agreement to develop Fucheng Industrial Park. Zhongfu International Investment (NIG) FZE, a Zhongshan subsidiary, was registered as a free trade zone enterprise in 2011. However, in 2016, the Ogun State government terminated Zhongfu’s role as interim manager of the zone, sparking the current legal battle.
Zhongfu initiated arbitration under the bilateral investment treaty between China and Nigeria. On March 26, 2021, the tribunal issued a final award of $55.7 million, plus interest and costs, payable by Nigeria to Zhongshan. Despite federal government attempts to resolve the dispute, no settlement has been reached.