Chinese firm, Zhongshan Fucheng Industrial Investment Co. Ltd has released one of the three Nigerian Airbus A330 aircraft detained in France, following a court order obtained from a Paris judicial court.
The company announced the release as a gesture of goodwill, acknowledging that Nigerian President Ahmed Bola Tinubu requires the aircraft for a scheduled meeting with French President Emmanuel Macron.
In a statement, a company spokesperson said: “Zhongshan has consistently acted reasonably and fairly in a legal dispute with Nigeria, which it did not initiate. The company has been informed that an Airbus A330, currently detained in France due to a French court order obtained by Zhongshan, is needed by the President of Nigeria for his upcoming meeting with President Macron next week. As a goodwill gesture, Zhongshan has lifted the seizure, allowing the aircraft to be used for the President’s trip.”
The spokesperson added that the company remains committed to negotiations with the Nigerian government, with hopes of reaching a “reasonable compromise swiftly.”
The Federal Government had initiated legal steps to address the interim seizure of the three presidential aircraft in France, which were detained following ex parte orders issued by the Paris Judicial Court on March 7 and August 12, 2024.
The Special Adviser to the President on Communication and Publicity at the Office of the Attorney General of the Federation and Minister of Justice, Kamarudeen Ogundele, confirmed that the Offices of the National Security Adviser and Attorney-General of the Federation are pursuing both legal and diplomatic measures to secure the release of the aircraft.
Ogundele emphasized that the aircraft are sovereign assets, used exclusively for sovereign purposes, and are therefore immune from attachment.
Zhongshan reiterated its confidence in the arbitral panel’s ruling, which was unanimously in the company’s favor. The spokesperson highlighted that courts in multiple countries have upheld the panel’s decision to award compensation, further legitimizing the company’s stance.
“Zhongshan has only sought to assert its rights under international law and remains confident in its case. The independent arbitral panel found unanimously in our favor, and courts in several countries have affirmed the panel’s award of compensation. The French court had all the relevant facts when it made its decision,” the spokesperson stated.
Background Story
Three jets linked to the Federal Government’s presidential air fleet had been seized by authorities in France and Switzerland.
The seizures followed a ruling by a French court, which authorised the confiscation of the aircraft due to a long-standing business dispute between Ogun State and Zhongshan.
The jets, which include a Dassault Falcon 7X stationed at Paris-Le Bourget airport, a Boeing 737, and an Airbus 330 located at Basel-Mulhouse airport in Switzerland had been grounded as part of the enforcement of a $74.5 million arbitration award in favour of Zhongshan according Premium Times.
According to sources, these aircraft were undergoing maintenance when the order for their seizure occurred.
The Nigerian government reportedly paid over $100 million for the Airbus A330, which has not yet been delivered to the country.
The seizure stems from a 2016 dispute when the Ogun State government revoked Zhongshan’s contract to manage an export processing zone.
Following the termination, Zhongshan initiated an investment treaty arbitration against Nigeria, citing the bilateral investment treaty between China and Nigeria.
The arbitration tribunal, chaired by a former President of the United Kingdom Supreme Court, awarded Zhongshan $55.7 million, with an additional $9.4 million in interest and legal costs amounting to £2.86 million.
Despite repeated pleas from the federal government for Ogun State to resolve the dispute, no settlement was reached, leading to the international legal actions that resulted in the seizure of the jets.
The French court’s order explicitly prohibits the movement, sale, or purchase of the aircraft until Zhongshan receives its compensation.
The Ogun State government and Zhongshan had been embroiled in a bitter dispute since 2016, following the state’s decision to replace Zhongshan as the interim manager of the Ogun Guangdong Free Trade Zone.
Zhongshan’s parent company, Zhuhai Zhongfu Industrial Group Co Ltd, had entered into an agreement in 2010 to develop and manage Fucheng Industrial Park within the zone, a deal that later unraveled, leading to the current legal battle.
Reacting to the court’s decision, the Special Adviser to the President on Information and Strategy, Bayo Onanuga, described the French court’s order as an “arm-twisting tactic” by the Chinese company. He claimed Zhongshan had misled the French court by withholding vital information. Onanuga further explained that the presidential jets were in France for routine maintenance when the court order was issued, arguing that as sovereign assets, they are protected by diplomatic immunity and should not be subject to foreign court rulings.
Tinubu’s government had vowed to fight tooth and nail to stop the Chinese investors from seizing Nigeria’s presidential jets in France.
Specifically, the Attorney General of the Federation and Justice Minister, Lateef Fagbemi, argued that the aircraft on the presidential fleet are sovereign assets used solely for sovereign purposes and are, therefore, immune from attachment by any entity.
Mr Fagbemi said this in a statement issued on Thursday.
He said this followed an interim attachment of three presidential aircraft undergoing routine maintenance in France made pursuant to ex parte orders issued by the Judicial Court of Paris.
“The actions by France, it would be recalled was on account of alleged debt owed it by the Nigerian government. The Office of the National Security Adviser, NSA, and the attorney general of the federation, AGF, and minister of justice are currently weighing both diplomatic and legal means.
“They have set in motion both legal and diplomatic steps to ensure the discharge of the inappropriate orders against the aircraft, which are covered by sovereign immunity.
“While further actions are being put in place to resolve the entire dispute through available legal means, the firm position of the federal government remains that the aircraft in question are sovereign assets used solely for sovereign purposes and are therefore immune from attachment as Zhongshan has sought to do,” said the statement.