In 2007, the Ogun State Government entered into a joint venture with Zhongshan Fucheng Industrial Investment Co Ltd, which is a Chinese based company for the purpose of developing Ogun Guangdong Free Zone Trade. However, the partnership turned sour in 2016 when Ogun State terminated this contract citing violations by Zhongshan.
The Chinese company disputed the termination and started arbitration proceedings demanding damages for apparent losses. In 2019, an independent arbitral tribunal awarded Zhongshan USD 74.5 million compensation, which Ogun state refused to pay.
The dispute escalated when Zhongshan got a court order in Paris to seize Nigerian government assets, including three presidential jets, to recover the unpaid compensation. The jets, a Dassault Falcon 7X, a Boeing 737‐7N6/BJJ and an Airbus A330‐243 were grounded at Paris-Le Bourget Airport and Basel-Mulhouse Airport.
The Ogun State Government claims Zhongshan kept them in the dark about the court proceedings, while the Chinese firm alleges that Ogun State breached their agreement and failed to meet obligations.
In a statement, Ogun State Government condemned Zhongshan’s actions, stating:
“Zhongshan’s provisional attachment of three Nigerian government-owned aircraft in France is an ill-advised attempt to defraud Ogun State and Nigeria. The attachments were obtained without notice to the Federal Government, Ogun State, or their legal counsel. These aircraft serve an official purpose such that they are immune from attachment under international and French laws. In addition, Zhongshan withheld information, masquerading as a foreign investor to deprive Nigeria, similar to the P&ID case.
Reacting to the development, Peter Obi, the Labour Party’s 2023 Presidential Aspirant, responded by saying that seizure of presidential jets was “an embarrassment before the global community” and a reflection on the country’s “failed leadership”.
Obi condemned the government’s obscurity and lack of openness, asserting that the recent international reports regarding the seizure of three planes belonging to Nigeria’s Presidential fleet show another instance among many exposing our failed leadership’s and disregard for rule of law.
He further raised questions on the government’s priorities, stating that purchasing a new presidential jet when people are suffering from economic challenges shows an insensitivity towards their hardships.
In response, the Federal Government has pledged to safeguard its overseas assets and initiated legal and diplomatic actions to reclaim confiscated presidential airplanes.
This dispute highlights concerns relating to transparency and accountability in government transactions coupled with the necessity for proper administration of international investments.
