The Nigerian Presidency, along with Ogun State government officials, are actively working to overturn recent court orders that led to the seizure of three presidential jets. These orders were issued by the Judicial Court of Paris on March 7, 2024, and August 12, 2024, at the behest of Zhongshan Fucheng Industrial Investment Co. Limited, a Chinese company.
Both the federal and Ogun State governments argue that these court orders are attempts to unlawfully strip Nigeria of its assets. They are seeking to vacate the orders and secure the release of the aircraft.
This situation mirrors a previous case involving Process and Industrial Development Limited (P&ID), where the Federal Government successfully overturned an $11 billion judgment debt secured by P&ID in London.
Background of the Zhongshan Fucheng Dispute
The dispute with Zhongshan Fucheng originated from a 2007 contract between Ogun State and Zhongshan to manage a free-trade zone. Disagreements arose in 2015, leading to arbitration that concluded in 2019. The Arbitral Panel awarded over $60 million against the Nigerian Federal Government, which was a co-defendant, despite Zhongshan’s limited achievements, such as building a perimeter fence around the free-trade zone.
Ogun State has been resisting the enforcement of this award, successfully contesting similar orders in eight jurisdictions. The state has also engaged in settlement discussions with Zhongshan. Despite initial indications of a potential resolution, Zhongshan’s insistence on full payment led to a breakdown in negotiations, with plans to reconvene in early 2024.
Ogun State has consistently sought reasonable settlement options, including a recent proposal sent to Zhongshan last week, which the company responded to after securing the latest court order.
Presidency’s Response
According to Bayo Onanuga, Special Adviser to the President on Information and Strategy, the federal government was not notified of the Paris court orders and is working alongside Ogun State to challenge what it deems frivolous rulings. Onanuga emphasized that the federal government is not bound by any contractual obligations with Zhongshan, as the dispute is between the company and Ogun State. The federal government supports Ogun’s efforts to resolve the issue amicably and rejects Zhongshan’s claims based on the 2007 contract.
The Presidency and Ogun State government remain committed to resolving the matter through legal and diplomatic channels, aiming to restore Nigeria’s control over its assets.