In the unfolding saga between Zhongshan, a Chinese firm at the heart of a contentious dispute with the Nigerian government, and the events surrounding the seizure of three presidential jets, tensions are high.
Zhongshan has stepped forward in a bold statement, expressing its eagerness to settle the matter and highlighting its patience in waiting for an olive branch from the Nigerian government. The company is ready—but will the government reciprocate?
This announcement comes on the heels of a French court’s dramatic decision to authorize the confiscation of the jets, which are intricately linked to Nigeria’s Federal Government. Under the court’s stern order, the jets are effectively grounded; their movement, sale, or purchase is blocked until Zhongshan receives the $74.5 million owed to them.
In a message underscoring their intent, Zhongshan claimed, “We have only ever sought to assert our rights under international law and we are confident in our position. The independent arbitral panel ruled unanimously in our favor, and courts across multiple jurisdictions have echoed this view, affirming that the compensation should be enforced. The French court’s ruling was made with full awareness of the surrounding facts.”
Zhongshan also emphasized the significance of the Ogun Free Trade Zone, described by the Economist Intelligence Unit as a critical international investment initiative, countering any narrative that diminishes its importance.
“Zhongshan has long stood ready for serious negotiations with Nigeria’s federal government, and we remain hopeful for a sign that they are equally prepared to engage,” the statement concluded.
In a sharp rebuttal, Bayo Onanuga, the Special Adviser to the President on Information and Strategy, characterized the French court’s order as the result of coercive tactics employed by Zhongshan. He asserted that both the federal and Ogun State governments had made concerted attempts to amicably resolve the issue, but claimed Zhongshan’s failure to disclose crucial information misled the French court.
Onanuga stated emphatically, “The jets are assets of a sovereign entity, protected by diplomatic immunity, which prohibits any foreign court from issuing an order against them.”
This complex dispute traces back to 2016, when the Ogun State government annulled Zhongshan’s contract for managing an export processing zone. In retaliation, Zhongshan initiated an investment treaty arbitration against Nigeria, leveraging the bilateral investment treaty between China and Nigeria.
After a prolonged legal battle, an arbitral tribunal delivered a final award in March 2021, mandating Nigeria to pay Zhongshan $55,675,000, plus interest and costs. As both sides stand firm, the outcome of this high-stakes standoff hangs in the balance.
