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Three aircraft from Nigeria’s presidential fleet have been seized in France and Switzerland, following a court ruling. The equipment, estimated to be worth $100 million, is at the heart of a legal conflict between the Nigerian government and China’s Zhongshan Fusheng Industrial Investment Company. The latter initiated the seizure as part of a $70 million dispute that Nigeria has refused to resolve despite successive convictions.
The conflict dates back to 2010, when Zhongshan was awarded the rights to develop an export processing zone in Ogun State in southwestern Nigeria. However, in 2016, Ogun State unilaterally terminated the partnership and attempted to expel the Chinese company from Nigerian territory. Zhongshan has since claimed that it has been a victim of harassment, particularly the revocation of its executives’ residence permits, and has therefore initiated arbitration proceedings on the grounds of violation of the bilateral investment treaty signed between China and Nigeria in 2001.
The seizure comes against a backdrop of multiple economic and political challenges facing Nigeria. The court ruling, which currently bans the plane from leaving Europe, puts further pressure on President Bola Ahmed Tinubu, who finds himself in a delicate diplomatic situation as he must balance international legal requirements with internal pressure to preserve Nigeria’s sovereignty.
To resolve this crisis, several options have emerged: Nigeria could finally pay the $70 million it owes Zhongshan, or try to appeal the legal decision. Another possibility is to seek an amicable settlement between the two parties. However, as things stand, it is unlikely that the planes will be released if the dispute is not clearly resolved.
The legal standoff could further strain relations between Nigeria and China, one of Nigeria’s main trading partners. The conflict could also affect foreign investment in Nigeria as the country seeks to attract capital to support its economic development.
Finally, the case is likely to have repercussions beyond Nigeria’s borders, setting a precedent for other commercial disputes involving African countries and foreign companies. It highlights the challenges of regulating foreign investment in Africa and the need to establish a clear legal framework that all parties respect.
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