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A French court has seized three jets owned by the Nigerian government in a long-running dispute with a Chinese company.
The dispute stems from a 2007 contract between Zhongshan Fucheng Industrial Investment Company and Ogun State in southwestern Nigeria to develop a free trade zone, which aimed to develop a large industrial park to attract investors.
The agreement ended between 2015 and 2016. Financial TimesZhongshan Iron & Steel said it was forced to withdraw from the deal due to “a series of illegal practices”.
Nigerian authorities strongly condemned the seizure of its aircraft and suggested that Zhongshan’s only aim was to “undermine and deceive” African governments.
A total of three presidential planes were grounded in France after Sun Yat-sen obtained an order from a Paris court.
The Nigerian government said the planes were undergoing “routine maintenance” at the time.
In a statement, Bayo Onanuga, a spokesman for the Nigerian president’s office, accused Zhongshan of launching a broader campaign to seize its overseas assets.
“The Chinese company’s coercive tactics are the latest in a series of failed attempts by the Nigerian government to seize assets in foreign jurisdictions.” He said.
In March 2021, an arbitration tribunal chaired by the President of the UK Supreme Court awarded the Chinese company $74.5 million (£57.8 million) in damages. Ogun State reportedly refused to pay the amount.
According to Nigerian newspapers, a building owned by Nigerians in Liverpool, England, was recently seized by a British court over the same dispute. Premium Times Report.
Last Friday, a U.S. appeals court ruled that Zhongshan can proceed with its efforts to seize Nigerian overseas assets. The court also rejected Nigeria’s defense of “sovereign immunity.”
On Thursday, Nigeria accused Zhongshan of misrepresenting facts to British, American and French courts.
Mr Onanuga said when the Ogun State contract was rescinded, all Zhongshan did was to build fences on the land demarcated as the free trade zone.
A free trade zone is an area where goods can enter or leave a country with reduced or no taxes or charges.
There are other similar areas in Nigeria, such as one in Lagos The Dangote Petroleum Refinery, built by Africa’s richest man Aliko Dangote, recently opened.
Zhongshan issued a statement to the Nigerian media saying: “The Ogun Free Trade Zone is more than just a fence, the Economist Intelligence Unit calls it a major international investment.”
Nigerian authorities tried to assure the people that they were working hard to comply with the “frivolous orders” of the French court.
“The Nigerian government remains committed to protecting our national assets from predators and loan sharks masquerading as investors,” the statement said.
The Ogun State government in Nigeria issued a similar statement, accusing Zhongshan of “taking a series of ill-advised actions” to seize Nigerian assets.
China is Nigeria’s largest import partner and the two countries have close trade relations.
The situation has also reignited public debate on whether President Bola Tinubu should own multiple taxpayer-funded aircraft. Ordinary Nigerians are struggling with a severe economic crisis.
Opposition politician Peter Obi, who unsuccessfully ran for president in 2023, said news of the seizure of the three jets was “embarrassing” and exposed “indifference to the plight of the growing impoverished classes among us.”
Additional reporting by the BBC’s Nkechi Ogbonna in Lagos.
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