Chinese Firm Releases Seized Nigerian Presidential Jet

(iexclusivenews) – Zhongshan Fucheng Industrial Investment Co. Limited, a Chinese firm, has announced the release of one of the three Nigerian Presidential jets it had seized following a French court order.

This development comes amidst an ongoing legal dispute between the company and the Nigerian government, stemming from a revoked contract with Ogun State in 2016.

The seizure of the aircraft, which included a Dassault Falcon 7X, a Boeing 737-7N6/BBJ, and an Airbus A330-243, had raised concerns about Nigeria’s international commitments and its ability to honor contractual agreements.

The jets were stationed at Paris-Le Bourget and Basel-Mulhouse airports when they were seized, highlighting the far-reaching consequences of the dispute.

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Background of the Dispute

The conflict between Zhongshan Fucheng and Nigeria dates back to 2013 when Zhongfu, a subsidiary of the Chinese investment company, signed a contract with the Ogun State government to develop a free trade area.

Under the terms of the agreement, Zhongfu was to own 60% of the joint venture.

However, the situation took a turn for the worse in 2016 when Zhongfu alleged that Ogun State had backed out of the deal and attempted to take over the “significant” Chinese investment in the free trade zone.

The company claimed it faced a “campaign of illegal acts” that ultimately forced it out of the agreement.

In response to the contract termination, Zhongshan initiated arbitration proceedings against Nigeria in 2018.

A three-person arbitration panel in London awarded the company $70 million in damages to be paid by the federal government in 2021.

With accrued interest, this amount has since grown to approximately $81 million.

The seizure of the Presidential jets was part of Zhongshan’s efforts to enforce the arbitration award and recover the damages owed by the Nigerian government.

This action underscores the complexities of international business disputes and the measures companies may take to secure their interests.

Release of the Airbus A330

In a gesture of goodwill, Zhongshan Fucheng has decided to release one of the seized aircraft, an Airbus A330.

The company made this decision after being informed that President Bola Tinubu would need the jet for a scheduled meeting with French President Emmanuel Macron.

A spokesperson for the company stated,

“Zhongshan has consistently sought to act reasonably and fairly in the course of a legal dispute with Nigeria which was not of its making. It has now been made aware that an Airbus A330, currently detained in France as a result of a French court order obtained by Zhongshan, is needed for the President of the Federal Republic of Nigeria to travel to a scheduled meeting with President Macron of France early next week.”

The release of the aircraft demonstrates a willingness to maintain diplomatic channels open and possibly paves the way for further negotiations between the parties involved.

The company’s spokesperson emphasized their commitment to engaging in talks with the Nigerian government to reach a “reasonable compromise rapidly.”

Implications and Future Outlook

The release of one Presidential jet marks a significant development in this ongoing dispute.

It not only allows President Tinubu to attend his scheduled meeting but also signals a potential thawing of relations between Zhongshan Fucheng and the Nigerian government.

However, the fact that two other aircraft remain seized serves as a reminder of the unresolved issues at hand.

The situation highlights the importance of honoring international agreements and the potential consequences of failing to do so.

As Nigeria continues to navigate this complex legal and diplomatic landscape, the outcome of this dispute could have far-reaching implications for the country’s reputation in the international business community and its ability to attract foreign investment in the future.

The ball now appears to be in Nigeria’s court, with pressure mounting to address the outstanding arbitration award and find a mutually acceptable resolution with Zhongshan Fucheng.

The coming weeks will be crucial in determining whether this goodwill gesture from the Chinese firm will lead to a comprehensive settlement or if further legal actions will be necessary to resolve the dispute.