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Africa - Nigeria - August 15, 2024

French Court Seizes Nigerian Presidential Jets Over Ogun State’s $74.5M Debt to Chinese Firm

 

Reports have emerged indicating that a French court has granted an order for the seizure of three presidential jets linked to the Federal Government of Nigeria. The court’s decision comes as part of a lawsuit filed by Zhongshan, a Chinese company, to ensure the payment of a $74.5 million compensation award.

The three aircraft associated with the Nigerian government include a Dassault Falcon 7X, a Boeing 737, and an Airbus A330. The Airbus A330, valued at over $100 million, was recently acquired by the government. The Dassault Falcon 7X was undergoing maintenance at Paris-Le Bourget airport, while the Boeing 737 and Airbus A330 were stationed at Basel-Mulhouse International Airport for similar reasons.

Zhongshan’s legal action stems from a business dispute with the Ogun State government, which led to the revocation of their export processing zone management contract in 2016. Despite an arbitral tribunal ruling in favor of Zhongshan and awarding them €74,459,221 in compensation, the decision has yet to be honored. Seeking enforcement of the arbitral award, Zhongshan turned to the French legal system, resulting in the seizure of the presidential jets.

The enforcement judge at the Paris Judicial Court ordered that the aircraft be secured to prevent their movement, stating, “This protective seizure will take place to secure and preserve the claim arising from the arbitration award dated 26 March 2021, made by an ad hoc arbitral tribunal.” The court further specified that the aircraft should be positioned in a way that prevents them from taking off autonomously.

Zhongshan has also taken similar actions in the United Kingdom, where buildings owned by the Nigerian government in Liverpool were seized under the orders of a UK court in relation to the same unresolved dispute.