Nigeria’s Presidential Jets Seized in Two Countries Over Chinese Debts After Court Orders- Reports …C0NTINUE READING HERE >>>
Reports have emerged that three of Nigeria’s presidential jets have been seized in France and SwitzerlandThe seizure was due to a long-standing business dispute between Ogun State and a Chinese company, Zhongshan. The seizures follow a French court ruling enforcing an arbitration award in Zhongshan’s favor, similar to a UK court decision
Henzodaily.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Three Nigeria-owned jets linked to the presidential jets have been seized in France and Switzerland due to an ongoing dispute between Ogun State and Chinese company Zhongshan.
The seizures followed a ruling by a French court, which authorised the confiscation of the aircraft.
Three jets linked to the Federal Government’s presidential air fleet have been seized
Photo credit: Anadolu
Source: Getty Images
Details about aircraft siezure
Leadership reports that there has been a long-standing business dispute between Ogun State and the Chinese company Zhongshan.
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The company has instituted various legal cases in different countries, including the United Kingdom, seeking arbitration awards against the Nigerian government.
Henzodaily.ng reported that a $70 million award was recently granted by the UK court, requiring Nigeria to forfeit properties estimated to be worth between £1.3 million and £1.7 million.
How it all started?
The legal battle stems from a 2010 agreement in which Zhongshan, through its parent company Zhuhai Zhongfu Industrial Group Co. Ltd, secured rights to develop a free trade zone in Ogun State, Nigeria.
In 2011, Zhongshan established a Nigerian entity, Zhongfu International Investment (NIG) FZE, to manage the project under the authority of the Ogun State government.
However, tensions escalated in July 2016 when Zhongfu accused the state government of abruptly terminating its appointment and attempting to install a new manager for the free trade zone.
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The dispute led to Zhongfu initiating an investment treaty arbitration under the bilateral investment treaty between China and Nigeria (the China-Nigeria BIT).
The arbitration tribunal ruled in favor of Zhongshan, awarding the company approximately $70 million in compensation, citing Nigeria’s breach of its obligations under the BIT.
The breakdown of the award is $55.7 million, with an additional $9.4 million in interest and legal costs amounting to £2.86 million.
The court order, as documented, grants Zhongshan the authority to enforce the seizure with the assistance of bailiffs, who are authorised to take all necessary measures to ensure the jets remain grounded.
Chinese companies seek to get compensated
Since January 2022, Zhongshan has sought to enforce the arbitration award in UK courts. The case has dragged on as the Chinese company obtained an interim award for two Liverpool properties owned by the Nigerian government.
Continuing its efforts, Zhongshan has now taken the Nigerian government to a French court to obtain permission to seize additional properties.
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The request to seize three Nigerian owned aircraft undergoing maintenance in France, Premium Times report states
The jets, which include a Dassault Falcon 7X stationed at Paris-Le Bourget airport, a Boeing 737, and an Airbus 330 located at Basel-Mulhouse airport in Switzerland have been grounded as part of the enforcement of a $74.5 million arbitration award in favour of Zhongshan.
The Nigerian government reportedly paid over $100 million for the Airbus A330, which has not yet been delivered to the country.
Top 10 Nigerian states with the highest domestic debt
Henzodaily.ng earlier reported that While many tend to shy away from debt, regarding it as a slavery tool to creditors, recent analysis has proven that a moderate amount of debt is functional for economic growth.
A report by the International Monetary Fund (IMF) said domestic debt starts to impede growth over a ratio of 35% of bank deposits, supporting conventional worries about crowding out and bank efficiency.
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The domestic debt data report is generated from the signed-off submissions received from the 36 states of the federation and the Federal Capital Territory (FCT).
Source: Henzodaily.ng
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