French court orders Chinese firm to seize Nigerian presidential jets over contract dispute

A Paris court in France has ordered the seizure of three jets belonging to the Nigerian government over the dispute involving an arbitration award in favour of Zhongshan Fucheng Industrial Investment Co. Ltd, a Chinese firm.

The court ruled that the Chinese firm should use the three jets at the Paris-Le Bourget and Basel-Mulhouse international airports “as security for its claim of EUR 74,459,221”.

The seized jets are Dassault Falcon 7X, with registration number 5N-FGU, Boeing 737-7N6/BBJ, with registration number 5N-FGT, and Airbus A330-243, with registration number 5N-FGA.

TheCable understands that two of the aforementioned jets have been put on sale by the federal government.

BACKGROUND

In 2010, Zhongshan, through Zhuhai Zhongfu Industrial Group Co. Ltd. (Zhuhai), its Chinese parent company, acquired rights to develop a free trade zone in Ogun state.

A year later, Zhongshan set up Zhongfu International Investment (NIG) FZE (Zhongfu), a Nigerian entity, to manage the project under the permission of the Ogun state government.

However, things took a different turn in July 2016 when the company accused the state government of abruptly moving to terminate its appointment while attempting to install a new manager for the free trade zone.

Subsequently, Zhongfu initiated an investment treaty arbitration against Nigeria under the bilateral investment treaty between the People’s Republic of China and Nigeria (the China-Nigeria BIT).

The arbitrators ruled that Nigeria was in breach of its obligations under the China-Nigeria BIT and awarded Zhongshan compensation of around $70 million.

Nigeria pleaded state immunity but was turned away by Sara Cockerill, a high court judge in the United Kingdom (UK), who said the country abused the time frame for appealing arbitral awards.

In 2023, a court of appeal in the UK ruled that Nigeria is liable for a $70 million arbitration award in favour of the Chinese firm.

Julian Flaux, the presiding judge, ruled Nigeria had failed to comply with the “generous” time limit of two and a-half months to raise the issue of state immunity.

The presiding judge said Nigeria failed to do the needful until three months after the deadline expired.

In June, a commercial court in London granted the Chinese firm the final order to seize two residential properties owned by Nigeria in the UK.

THE FRENCH COURT VERDICT

According to the court order published by Premium Times, the court held that the seizure is to “preserve the claim arising from the arbitration award dated 26 March 2021, made by an ad hoc arbitral tribunal.”.

“The bailiffs will be able to go to any place where the aircraft registered 5N-FGU, 5N-FGT, and 5N-FGA are located and seize them,” the order reads.

“The bailiffs will be able to include the type of aircraft and its registration number, as well as its main equipment and accessories, in the seizure report.

“The bailiffs may be assisted by any person, request any equipment, and take any measure necessary to implement the measure ordered, and in particular, request any employee and equipment of Paris-Le Bourget Airport and Basel-Mulhouse International Airport.

“Let’s say that the aircraft, registered 5N-FGU, 5N-FGT, and 5N-FGA, will be positioned so that the cockpit faces a wall or building or in any other way that prevents it from taking off again autonomously.

“Once the aircraft have been seized, the bailiffs will appoint any third party of their choice as custodian of the aircraft registered 5N-FGU, 5N-FGT, and 5N-FGA.”