French Court Seizes Nigerian Presidential Jets Over $81 Million Arbitration Dispute

A French court has issued an order to seize three presidential jets belonging to the Federal Government of Nigeria following a dispute involving an arbitration award in favor of Zhongshan Fucheng Industrial Investment Co. Ltd., a Chinese firm. The jets, identified as a Dassault Falcon 7X, a Boeing 737-7N6/BBJ, and an Airbus A330-243, are currently stationed at Paris-Le Bourget and Basel-Mulhouse airports.

The legal action stems from a long-standing dispute over a free trade zone project in Ogun State, Nigeria. In 2013, Zhongfu, a subsidiary of Zhongshan, entered into an agreement with the Ogun state government to develop an export processing zone. However, the relationship soured when, in 2016, Zhongfu accused the Nigerian government of attempting to renege on the deal, leading to arbitration proceedings in London.

In 2021, the arbitration panel awarded Zhongshan approximately $70 million in damages, which has since accrued interest to about $81 million due to Nigeria’s non-payment. This award was based on Nigeria’s failure to comply with the terms of the agreement, leading to significant financial losses for Zhongshan.

The French court’s decision to seize the jets comes as a response to Zhongshan’s application for enforcement of the arbitration award. The court has ruled that these aircraft should serve as security for Zhongshan’s claim, now amounting to EUR 74,459,221. This move has sparked discussions on social media platforms like X, with users expressing varied reactions, from criticism of Nigeria’s foreign policy to concerns over national sovereignty.

Legal experts have pointed out that this case highlights the enforceability of international arbitration awards, where assets of a state can be seized in foreign jurisdictions if the state fails to honor such awards. The seizure affects Nigeria’s presidential fleet and raises questions about the implications for international business dealings and state immunity.

The Nigerian government has yet to issue an official statement on the matter, but reactions from the public and political commentators suggest a mix of embarrassment and calls for diplomatic and legal action to resolve the issue. Critics argue that this incident underscores the need for more robust legal frameworks in international agreements to prevent such scenarios.