Zhongshan Fucheng Industrial Investment Co. Limited, a Chinese company, has announced plans to seize Nigerian assets in the United Kingdom, United States, and six other countries after securing a court injunction to ground three presidential jets in Europe. The targeted countries include Belgium, Canada, France, Singapore, and the British Virgin Islands, as revealed in documents obtained by The PUNCH.
The dispute traces back to a joint venture agreement signed in 2007 between Ogun State and Chinese partners to establish the Ogun Guangdong Free Trade Zone Company. This venture involved developing an industrial park and building factories within the zone. However, the agreement was terminated in 2016, prompting Zhongshan to pursue legal action in Nigerian courts to restore its rights, though these proceedings were discontinued in 2018.
Recently, a French court authorized the seizure of three Nigerian presidential jets: a Dassault Falcon 7X, a Boeing 737, and an Airbus 330. These orders arose from a $74.5 million compensation award granted to Zhongshan by an arbitral tribunal chaired by the former President of the UK Supreme Court. The tribunal found that Nigeria breached its obligations under the bilateral investment treaty signed with China in 2001, citing unfair treatment and expropriation of Zhongshan’s investments without compensation.
Zhongshan alleges that the Ogun State Government’s actions, which included the termination of the joint venture and subsequent arrest warrants for company executives, violated the treaty’s terms. The firm claims that it invested significant resources into developing the industrial park, including infrastructure and essential services. Despite these investments, the company argues that Nigeria has failed to compensate it adequately.
The Nigerian government has vowed to protect its foreign assets from what it describes as “predators.” The Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, stated that legal and diplomatic measures are underway to recover the seized presidential aircraft. The government maintains that the jets are sovereign assets, immune from foreign court orders due to their diplomatic status.
In response, the Ogun State Government criticized the judicial process leading to the aircraft’s provisional attachment, describing it as a fraudulent attempt by Zhongshan to seize Nigerian assets. The state government emphasized that the joint venture was terminated in 2015 due to non-compliance by the Chinese partner and that the arbitral tribunal’s decision was unjust.
The dispute has led to ongoing legal battles in eight jurisdictions worldwide, with Zhongshan seeking to enforce its compensation award. Meanwhile, Nigeria continues to resist enforcement efforts, citing sovereign immunity and the fraudulent nature of Zhongshan’s claims. The situation remains tense, with both parties committed to pursuing their legal rights on the international stage.
