The Nigerian government has accused a Chinese company of attempting to seize its assets through “subterfuge” after a French court ruled in the firm’s favour to take over three presidential jets.
The court in Paris granted Zhongshan Fucheng Industrial Investment Co. Limited permission to seize the aircraft, which were undergoing routine maintenance in France.
Presidential spokesman Bayo Onanuga said the Chinese firm was trying “to take over offshore assets of the Federal Government of Nigeria through subterfuge”.
The dispute stems from a 2007 contract between Zhongshan and Ogun State to manage a free-trade zone. The state government revoked the contract in 2015.
Zhongshan then initiated arbitration against Nigeria under a bilateral investment treaty. Arbitrators ruled that Nigeria had breached its obligations and awarded the company compensation.
Mr Onanuga insisted that the federal government “is not under any contractual obligation with the company”, arguing that the matter is between Zhongshan and Ogun State.
“The case in which Zhongshan is trying to use every unorthodox means to strip our offshore assets is between the company and the Ogun State Government,” Onanuga said, flaying Zhongshan which he said “has no solid ground to demand restitution from the Ogun State Government based on the facts regarding the 2007 contract between the company and the State Government to manage a free-trade zone”.
“When the contract with Ogun State was revoked in 2015, the company had only erected a perimeter fence on the land earmarked for a free trade zone,” he said.
He added that when the contract was revoked, the company had “only erected a perimeter fence” on the land earmarked for the free trade zone.
The Nigerian government is contesting the French court’s decision and has appealed the arbitration ruling in multiple jurisdictions, including the UK and US.
Arm-Twisting Tactics?
Onanuga said despite that the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, has been working with the Ogun State Government on an amicable resolution, “Zhongshan obtained two orders from the Judicial Court of Paris dated March 7, 2024, and August 12, 2024, without any notice being duly served on the Federal Government of Nigeria and Ogun State Government”.
“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.
“The material facts in the transaction between the Ogun State Government and Zhongshan point to another P&ID case in which unscrupulous and questionable individuals falsely present themselves as investors with the sole objective of undercutting and scamming Governments in Africa.”
He claimed the foreign company “withheld vital information and misled the Judicial Court in Paris into attaching the Nigerian government’s presidential jets, which are on routine maintenance in France”.
“The use and nature of the Presidential jets as assets of a Sovereign entity whose assets are protected by diplomatic immunity forbid any foreign Court from issuing an order against them.
“We want to assure Nigerians that the Federal Government is working with the Ogun State Government to discharge this frivolous order in Paris immediately.
“Nigerian Government will always work to protect our national assets from predators and shylocks who masquerade as investors,” he noted.
Shrinking Presidential Fleet
The court order came amid a controversy surrounding the planned purchase of a new presidential jet for President Bola Tinubu who has had to use hired jets for official trips in recent times due to faulty presidential jets.
The health state of the Presidential Air Fleet has been source of concern of late.
In May, a faulty presidential jet stopped Vice President Kashim Shettima from attending the 2024 US-Africa Business Summit hosted by the Corporate Council on Africa.
Last December, a presidential aircraft, Falcon 900B, was put up for sale, with the Nigerian Air Force (NAF) asking interested persons to submit their bids for the purchase of the aircraft.
