The Nigerian Presidency has initiated efforts to overturn a ruling by the Judicial Court of Paris, France, which led to the seizure of three presidential jets. The ruling was sought by the Chinese firm Zhongshan Fucheng Industrial Investment Company.
The court orders, which also affected the Ogun State Government, have been described by the Presidency as an attempt to strip Nigeria of its assets. Both the federal and Ogun State governments are now working urgently to vacate the orders, which were issued on March 7, 2024, and August 12, 2024, respectively, in a bid to secure the release of the jets.
This situation mirrors a previous case involving Process and Industrial Development Limited (P&ID), where Nigeria faced a $11 billion judgment debt, which was eventually vacated.
The dispute with Zhongshan Fucheng traces back to a 2007 contract between the company and Ogun State for managing a free-trade zone. The relationship soured in 2015, leading to arbitration in 2016. In 2019, an Arbitral Panel awarded over $60 million against the Federal Government, which was a co-defendant, despite the company’s limited work on the project—a mere perimeter fence.
Ogun State has successfully resisted enforcement of this award in several jurisdictions, including the U.S. and U.K., and has engaged in settlement discussions. However, the most recent meeting in September 2023 ended in a stalemate when Zhongshan reversed its position, demanding full payment of the arbitration debt. Since then, the company has pursued enforcement proceedings, leading to the controversial court orders in Paris.
Special Adviser to the President on Information and Strategy, Bayo Onanuga, stated that the Federal Government is not under any contractual obligation to Zhongshan and criticized the company’s attempts to seize Nigerian assets through “subterfuge.” Onanuga asserted that the judicial process leading to the aircraft seizures was flawed and that the Federal Government, alongside Ogun State, is committed to overturning the orders.
Ogun State Government, through a statement by Governor Dapo Abiodun’s Special Adviser on Media and Strategy, Kayode Akinmade, condemned the court orders as a “total charade” and accused Zhongshan of concealing crucial information to secure the seizures. The state government likened the situation to the P&ID case, describing it as a ploy by unscrupulous individuals masquerading as investors to defraud Nigeria.
Reacting to the development, Labour Party presidential candidate in the 2023 elections, Peter Obi, described the seizure of the jets as an “international embarrassment” that highlights Nigeria’s failed leadership and disregard for the rule of law. Obi criticized the Federal Government’s decision to proceed with the jet deal amidst widespread economic hardship and called for transparency in government dealings.
Obi also questioned the Ogun State Government’s handling of its agreement with Zhongshan and urged the Federal Government to explain how the situation escalated to an international debacle.
As the federal and Ogun State governments continue their legal battle to reclaim the seized jets, this case has become another focal point in the ongoing scrutiny of Nigeria’s international dealings and governance.
