Nigeria’s government is embroiled in a heated dispute with a Chinese company, Zhongshan Fucheng Industrial Investment Co. Ltd., after a French court granted the firm permission to seize Nigerian presidential jets. The Federal Government has accused the Chinese company of trying to unlawfully strip Nigeria of its assets by leveraging a controversial court decision.
Presidential spokesperson, Bayo Onanuga, explained that the Chinese firm is employing deceptive tactics to take control of Nigeria’s overseas property. This conflict stems from an arbitration ruling that was recently upheld by a court in Paris. The ruling permits Zhongshan to confiscate three of Nigeria’s presidential jets, which were stationed in France for routine maintenance, as collateral for an ongoing legal dispute.
The tension between Nigeria and Zhongshan dates back to 2007, when the Ogun State government signed a contract with the Chinese firm to manage a free-trade zone in the state. In 2015, the agreement was cancelled by the Ogun State government, sparking a legal battle. The Chinese company, feeling wronged, took its case to arbitration under the investment treaty between China and Nigeria. The arbitrators ruled in favor of Zhongshan, stating that Nigeria had violated the terms of the treaty. The ruling demanded that Nigeria pay a substantial sum in compensation.
Despite this decision, Nigeria and the Ogun State government continued to challenge the arbitration award, appealing in multiple jurisdictions across the globe, including the U.S. and the U.K. The latest setback for Nigeria came when the French court authorized Zhongshan to seize the presidential jets as security for its claim.
Onanuga emphasized that the Nigerian government has no direct contractual obligations to Zhongshan. He argued that the firm’s dispute is solely with Ogun State and that the Chinese company has been using every possible tactic to target Nigeria’s foreign assets. He also pointed out that Zhongshan’s demands are baseless, claiming that the only work the company did before the contract was cancelled was the construction of a perimeter fence around the free-trade zone site.
In response to the Paris court’s ruling, Nigeria’s Attorney-General and Ogun State authorities have been collaborating to overturn the seizure order. Onanuga accused Zhongshan of withholding crucial information and misleading the French court into making an unjust ruling. He added that such legal maneuvers are reminiscent of other high-profile cases where foreign entities have attempted to defraud African governments by disguising themselves as legitimate investors.
Nigeria’s government has raised concerns that the seizure of its presidential jets violates international diplomatic immunity, which protects state assets from such actions. The government is taking swift measures to resolve the issue, promising Nigerians that they will recover the jets and prevent any further loss of national assets to what they describe as opportunistic companies.
This latest challenge comes at a difficult time for Nigeria’s presidency, as its fleet of aircraft has been shrinking due to mechanical failures. President Bola Tinubu, who has faced public backlash over the cost of acquiring new aircraft, has been forced to use rented jets for official business. The situation became even more embarrassing when Vice President Kashim Shettima was unable to attend an important international summit in the United States due to technical problems with the government’s plane.
The fleet’s declining reliability is causing frustration within the Nigerian government, and this recent legal setback only adds to the pressure. In a bid to cut costs, Nigeria has already put one of its presidential jets up for sale, signaling a shift toward reducing the fleet’s size. However, with foreign court rulings threatening to confiscate what’s left of the fleet, the government is fighting to maintain control over its national assets.
Despite these challenges, the Nigerian government is determined to defend its property and safeguard the country’s reputation on the international stage. Onanuga vowed that Nigeria would not allow any foreign company to take advantage of the nation’s resources and that the government is committed to overturning the court’s decision.
