A $100 million Nigerian presidential jet has been seized in France as part of efforts to enforce a $70 million arbitration award against Nigeria, stemming from a long-running legal dispute with a Chinese company.
The conflict dates back to 2001 when China and Nigeria signed a bilateral investment treaty to encourage investments between the two countries. In 2010, Zhongshan Fucheng Industrial Investment, through its parent company Zhuhai Zhongfu Industrial Group, acquired rights to develop the Ogun Guangdong Free Trade Zone (OGFTZ) in Ogun State, Nigeria.
Zhongshan established Zhongfu International Investment (NIG) FZE in 2011 to manage the development of the free trade zone, undertaking significant infrastructure projects. By 2013, Zhongfu had become the permanent manager of the OGFTZ under a joint venture agreement, securing a majority shareholding in the project.
However, in 2016, the Ogun State government abruptly terminated Zhongfu’s appointment and took aggressive actions to expel the company from Nigeria, including harassing its executives and revoking their immigration papers. In response, Zhongshan initiated arbitration proceedings in 2017, claiming a breach of the bilateral investment treaty.
In March 2021, an arbitration tribunal chaired by Lord Neuberger, former president of the UK Supreme Court, ruled in favor of Zhongshan. The tribunal found that Nigeria had breached its obligations under the China-Nigeria BIT and awarded the company $55.7 million, along with $9.4 million in interest and legal costs, bringing the total to approximately $70 million. Despite attempts by the Nigerian government to resolve the dispute, the conflict remained unresolved.
In 2023, Nigeria sought state immunity in a legal case in the UK, but the High Court denied the request, ruling that the country had exceeded the time limit for appealing arbitral awards. The UK Court of Appeal upheld the arbitration award in July 2023.
As part of its efforts to recover the awarded funds, Zhongshan secured interim charging orders over two Nigerian government-owned properties in Liverpool in June and August 2022. Nigeria argued that the properties were immune from seizure due to their use for consular services, but the court dismissed this claim, noting that the properties had not been used for diplomatic purposes in over 34 years.
In 2024, the US Court of Appeals for the District of Columbia further affirmed the enforceability of the arbitration award under the US Foreign Sovereign Immunities Act, rejecting Nigeria’s challenge to the enforcement.
The seizure of the Nigerian presidential jet in France marks a significant escalation in the enforcement of the arbitration award. The legal battle continues to cast a shadow over Nigeria’s international relations and raises concerns about the impact on the country’s assets abroad.