Western courts have considered a 2007 case involving China’s Zhongshan Fuxing Industrial Investment Co., Ltd. and the authorities of Ogun State, Nigeria.
The Chinese were supposed to create a duty-free zone there, but by 2015 they had only managed, according to the Nigerians, to fence the area off.
Then the state authorities terminated the contract, and the Chinese, who claim their work was more than just erecting a fence, began a battle for compensation in international arbitration courts.
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Nigeria didn’t pay, Chinese seized planes and property
Courts in the UK, US and France have successfully ordered Nigeria to pay it $74.5 million. Nigeria has refused to pay. On Thursday, Zhongshan obtained a French court order allowing it to seize Nigerian assets, including the presidential jets, that are being searched in France and Switzerland.
The seized aircraft include a newly purchased Airbus A330 worth more than $100 million, as well as two Dassault Falcon 7X and a Boeing 737.
Nigeria is a federal state and President Bola Tinubu’s government has said the seizure of federal assets is illegal and that the Chinese company has “deceptively misled Western courts”.
Slyly, because, as the president’s spokesman said in his speech on Thursday, the federal government has not entered into any commercial relations with them and has not signed any contracts. The spokesman added that the use of the presidential aircraft and their nature as “assets of a sovereign entity protected by diplomatic immunity prevent any foreign court from issuing a writ against them.”
On Friday, it turned out that this was not the end of the problems facing the federal authorities in Nigeria, as a US court allowed the Zhongshan Company to seize two properties belonging to the African country’s government located in the United States.
The Chinese do not intend to stop there, as they have already begun legal proceedings aimed at seizing more Nigerian state assets in Great Britain, the United States, France, Canada, Belgium, Singapore and the British Virgin Islands.
Back on the case. “Goodwill gesture”
However, Zhongshan issued a statement on Friday: “We have learnt that the President of the Federal Republic of Nigeria needs the Airbus A330, currently impounded in France, for his scheduled meeting with French President Emmanuel Macron early next week. As a gesture of goodwill, he immediately said: “We have retracted the impoundment of this aircraft. This will allow it to be used for the President’s trip.”
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