A French court has ruled in favor of Zhongshan Fucheng Industrial Investment Co. Limited, a Chinese company, granting the seizure of three Nigerian presidential jets as security for an outstanding $74.5 million debt.
The Tribunal Judiciaries de Paris has barred Nigeria from moving or selling the jets until the company receives its compensation.
The jets, including a Dassault Falcon 7X in Paris and a Boeing 737 and Airbus 330 in Switzerland, were seized during routine maintenance as part of a legal battle stemming from a 2007 contract dispute between Zhongshan and the Ogun State government.
The contract, initially to manage a free-trade zone, was revoked by the Ogun State government in 2015, leading Zhongshan to seek arbitration under the China-Nigeria Bilateral Investment Treaty (BIT).
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Despite appeals by Nigeria in various jurisdictions, the Paris court ruled that the jets’ seizure was necessary to secure Zhongshan’s claim. Nigerian officials, however, argue that the federal government has no contractual obligations to Zhongshan, asserting that the dispute is solely between the company and the Ogun State government.
