French Court Seizes 3 Nigerian Presidential Jets Amid Dispute with Chinese Firm

A French court has ordered the seizure of three jets linked to the Nigerian government as part of an ongoing legal dispute with a Chinese company, Zhongshan. The move is part of efforts to enforce a $74.5 million compensation award against Nigeria.

The seized jets include a Dassault Falcon 7X stationed at Le Bourget airport in Paris, a Boeing 737, and an Airbus 330 located at Basel-Mulhouse airport in Switzerland. The court ruling prevents the Nigerian government from relocating or selling the aircraft until Ogun State, a subnational government in Nigeria, pays the required compensation to Zhongshan.

This seizure follows a similar legal action in the UK, where a court granted Zhongshan charging orders against two Nigerian-owned properties in Liverpool. The properties, valued between £1.3 and £1.7 million, are located at 15 Aigburth Hall Road and Beech Lodge, 49 Calderstones Road.

The dispute traces back to 2010 when Zhongshan, through its parent company Zhuhai Zhongfu Industrial Group Co. Ltd, secured rights to develop a free trade zone in Ogun State. In 2011, the company established Zhongfu International Investment (NIG) FZE to manage the project. However, in 2016, the Ogun State government allegedly attempted to terminate Zhongfu’s appointment and install a new management team.

In response, Zhongfu initiated an investment treaty arbitration under the bilateral investment treaty (BIT) between China and Nigeria, claiming Nigeria breached its obligations. The arbitration tribunal ruled in favor of Zhongshan, awarding the company approximately $70 million in compensation.

In January 2022, Zhongshan sought enforcement of the arbitration award in international courts. Nigeria argued for state immunity, but a UK High Court judge dismissed this defense, citing the country’s failure to appeal the arbitration ruling within the stipulated timeframe.