In a move against the Chinese firm Zhongshan Fucheng Industrial Investment Company, the Presidency is working to vacate court orders from the Judicial Court of Paris that led to the seizure of three presidential jets.
The federal and Ogun State governments are coordinating efforts to secure the release of the planes, which were seized on March 7, 2024, and August 12, 2024, as part of a legal battle initiated by Zhongshan.
Federal Government and Ogun State Contest Seizure Orders Both the federal and Ogun State governments have described the court orders as an attempt to strip Nigeria of its assets. The legal conflict stems from a 2007 contract between Ogun State and Zhongshan to manage a free-trade zone, which later turned contentious. Despite previous successes in resisting similar enforcement actions in multiple jurisdictions, the recent Paris court orders have escalated the situation.
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Background of the Dispute
The dispute began in 2015, leading to arbitration in 2016, which culminated in a $60 million award against Nigeria in 2019. Zhongshan’s attempts to enforce this award have been met with resistance from Ogun State, which has engaged in settlement discussions.
However, the latest court orders were obtained without the federal government or Ogun State being duly notified, raising concerns about the legal process.
Presidency and Ogun State Respond Special Adviser to the President on Information and Strategy, Bayo Onanuga, stated that the Federal Government is not under any contractual obligation to Zhongshan and accused the company of using unorthodox means to seize Nigerian assets.
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The Ogun State Government has also condemned the judicial process that led to the provisional attachment of the jets, describing it as fraudulent and misleading.
Ongoing Legal Battle
Efforts are underway to lift the provisional attachments, with the Presidency and Ogun State determined to protect Nigeria’s assets.
The situation has drawn comparisons to the P&ID case, with concerns that foreign companies are attempting to defraud Nigeria through questionable legal tactics.
Peter Obi Calls Out Government Accountability
Reacting to the incident, Labour Party presidential candidate Peter Obi described the seizure as an international embarrassment, criticizing the Federal Government’s handling of the situation and its impact on Nigeria’s image.
Obi called for greater transparency and accountability in government dealings to prevent such occurrences in the future.