The Federal Government of Nigeria has accused the Chinese company Zhongshan Fucheng Industrial Investment Co. Limited of deception after a French court ruled in favor of the firm, allowing it to seize Nigerian presidential jets.
On Thursday, presidential spokesman Bayo Onanuga alleged that the Chinese firm is attempting to “take over offshore assets of the Federal Government of Nigeria through deception.”
The dispute centers on an arbitration award, where a Paris court ruled in favor of Zhongshan, permitting the seizure of three presidential jets currently in France for maintenance. This is part of a long-standing legal dispute between the company and the Ogun State government.
The disagreement began in 2007 when Zhongshan signed a contract with Ogun State to manage a free-trade zone, which was revoked in 2015. Zhongshan then initiated an investment treaty arbitration under the China-Nigeria bilateral investment treaty. The arbitrators found Nigeria in breach and awarded Zhongshan millions in compensation.
Despite appeals by the Nigerian government and Ogun State in various jurisdictions, including the UK and the US, the latest ruling from France allows Zhongshan to seize the jets as security for the arbitration award dated March 26, 2021.
The Nigerian government maintains it has no contractual obligation with Zhongshan, emphasizing that the dispute is between the company and Ogun State. Onanuga criticized Zhongshan for using unorthodox methods to claim Nigerian assets, asserting that the company misled the Paris court and that the jets, protected by diplomatic immunity, should not be subject to foreign orders.
The court order coincides with a debate over the purchase of a new presidential jet for President Bola Tinubu, as the current fleet faces issues. The Nigerian Air Force recently put one of the presidential aircraft, Falcon 900B, up for sale due to its condition.
