“Judicial Jousting: Nigeria and China in High-Stakes Battle Over Aircraft Attachment

The Ogun State Government has criticized the judicial process that led to the provisional attachment of three Nigerian government-owned aircraft in France by the Judicial Court of Paris on March 7th and August 2nd, 2024. The attachment was sought by Zhongshan Fucheng Industrial Investment Co. Ltd, a Chinese company, over a contract dispute with Ogun State dating back to 2007. Ogun State claims that the judicial process was flawed, describing it as a fraudulent maneuver by Zhongshan to appropriate Nigerian assets abroad, and accused the company of deliberately concealing the litigation from the Nigerian government, Ogun State, and their legal counsel.

The Ogun State Government, in collaboration with the Federal Government, has taken swift action to have these provisional attachments lifted. They argue that the assets in question are used solely for sovereign purposes and are thus immune from attachment under international and French law. The government also claims that Zhongshan misled the Judicial Court of Paris regarding the nature and use of the assets and failed to make full disclosure to the court, which contributed to the wrongful seizure orders.

The underlying contract between Ogun State and Zhongshan, initiated in 2007 for the management of a free-trade zone, became a subject of dispute in 2015, leading to arbitration. Although the Arbitral Panel awarded over $60 million to Zhongshan, Ogun State has resisted the enforcement of this award, citing the unfairness of the decision. This resistance has been successful in multiple jurisdictions, and appeals are still pending in the U.S. and U.K. Despite engaging in settlement discussions, Ogun State accuses Zhongshan of acting in bad faith and resorting to enforcement proceedings rather than negotiating in good faith.

Ogun State has expressed regret for any embarrassment caused to the Federal Government of Nigeria and remains committed to protecting the nation’s assets and integrity. The government vows to resist any attempts at extortion and continues to explore reasonable settlement options to resolve the protracted dispute. Despite recent setbacks, the Ogun State Government maintains that a fair and quantifiable settlement remains the preferred solution.