Chinese Firm Releases Seized Presidential Jet for Nigeria

Zhongshan Fucheng Industrial Investment Co. Limited, a Chinese firm, has announced the release of one of Nigeria's three seized presidential jets.

This decision comes amidst an ongoing legal dispute between Zhongshan and the Nigerian government, stemming from a failed free trade area agreement with Ogun State.

In 2013, Zhongfu, a subsidiary of Zhongshan, entered into a contract with Ogun State to develop a free trade zone, with Zhongfu owning 60% of the joint venture.

However, by 2016, disputes arose, leading Zhongfu to allege that Ogun State had backed out of the deal, prompting a series of "illegal acts" against the company.

Consequently, Zhongshan initiated arbitration proceedings in 2018, resulting in a London arbitration panel awarding the company $70 million in damages, which has since accrued to approximately $81 million with interest.

The French court authorized the seizure of three Nigerian presidential jets, including a Dassault Falcon 7X, a Boeing 737-7N6/BBJ, and an Airbus A330-243, to enforce this award.

However, Zhongshan decided to release one of the jets, an Airbus A330, after learning that President Bola Ahmed Tinubu required it for an upcoming meeting with French President Emmanuel Macron.

A spokesperson for Zhongshan stated, "Zhongshan has consistently sought to act reasonably and fairly in the course of a legal dispute with Nigeria which was not of its making.

It has now been made aware that an Airbus A330, currently detained in France as a result of a French court order obtained by Zhongshan, is needed for the President of the Federal Republic of Nigeria to travel to a scheduled meeting with President Macron of France early next week. As a gesture of goodwill, Zhongshan has lifted the seizure of that aircraft immediately. This will allow it to be used for the President’s trip."

Despite this gesture, the Nigerian government, represented by Special Adviser to the President on Information and Strategy, Bayo Onanuga, has criticized Zhongshan's actions.

Onanuga accused the company of misleading the Paris Judicial Court about the nature of the assets, which are protected by diplomatic immunity. He emphasized that the federal government is not under any contractual obligation with Zhongshan and that efforts are being made to resolve the matter amicably.