Three aircraft belonging to the Nigerian presidential fleet have just been seized in France and Switzerland, following a court ruling. The seizure happened end of last week and was initiated by Zhongshan, a Chinese company involved in a long-running legal dispute with Ogun State. The dispute concerns the management of an export processing zone.
Undergoing maintenance in Europe, the three seized aircraft are worth $100 million, which covers the $70 million that Nigeria refuses to pay, despite a conviction and then a lost appeal.
The temporary seizure of the three Nigerian presidential aircraft is the latest twist in an interminable soap opera.
In a statement by spokesperson Bayo Onanuga, Nigeria’s presidential office accused Zhongshan of mounting a wider campaign to seize its assets overseas.
“This arm-twisting tactic by the Chinese company is the latest in a long list of failed moves to attach Nigerian government-owned assets in foreign jurisdictions,” he said.
Convicted at first instance and then on appeal, Nigeria is dragging its feet in paying Zhongshan Fusheng Industrial investment the €70 million. In 2010, this Chinese company acquired the rights to develop a free zone in Ogun State, south-western Nigeria, but six years later, Ogun State unilaterally terminated the partnership and took steps to expel the Chinese company from Nigeria.
The Chinese executives and staff then claimed to be victims of harassment and had their residence permits withdrawn. Zhongshan initiated arbitration proceedings against Nigeria, claiming breach of the bilateral investment treaty signed between Beijing and Abuja in 2001.
It is this arbitration procedure that has landed Nigeria in an embarrassing imbroglio for President Bola Ahmed Tinubu.
The three presidential jets, seized by the French courts, were in Europe for maintenance. They will not be able to take off any time soon unless Nigeria pays the $70 million owed, or unless a court overturns the arbitration decision.