Chinese Firm Releases One of Three Presidential Jets in Dispute with Ogun State

*Zhongshan Fucheng reiterates commitment to act fairly in resolution of matter

*Tuggar blames sub-nationals for improper handling of foreign affairs, says FG to resolve dispute

Deji Elumoye and Alex Enumah in Abuja

A Chinese firm, Zhongshan Fucheng Industrial Investment Co Limited, which impounded three of Nigeria’s aircraft in Paris, France, following the order of a French court due to a dispute with Ogun State, yesterday released one of the aircraft, an Airbus A380 recently acquired to replace former Air Force One.
But Zhongshan Fucheng Industrial Investment still held on to two of the country’s aircraft.

This was as the federal government yesterday, said it was taking steps towards resolving the dispute. Foreign Affairs Minister, Yusuf Tuggar, who reacted to the matter, attributed the dispute which resulted in the impoundment of the aircraft to the wrong handling of international affairs by sub-national actors.
Following an arbitration judgement in favour of the Chinese firm, a Chinese court had on August 12, ruled that the judgement creditor could attach any of Nigeria’s assets abroad in payment of the judgement debt.

Consequently, Zhongshan seized three presidential aircraft that were in Paris for maintenance.
The action was strongly condemned by Nigeria because sovereign assets were outside the scope of assets that could be attached to a judgement debt.
Notwithstanding, the federal government in a statement on Thursday disclosed that both legal and diplomatic instruments would be immediately deployed to vacate the seizure order on the presidential aircraft.

The move may have paid off as the firm announced the release of the Airbus A380, the newly purchased aircraft for the president.
The firm said that its decision to release the presidential aircraft was to demonstrate its readiness to dialogue with the Nigerian government.
In a statement, Zhongshan explained that it decided to release one of the aircraft to prove that it,  “consistently sought to act reasonably and fairly in the course of a legal dispute,” which it argued was of no fault of its own.

“Zhongshan remains committed to talks with representatives of the Federal Government of Nigeria, this time serious and substantive on both sides, to reach a reasonable compromise settlement rapidly,” the statement read in part.

Meanwhile, speaking with journalists at the Malabo International Airport, Tuggar, said his ministry was working with the Attorney-General of the Federation and Minister of Justice to address the issue diplomatically and legally, adding that negotiations were ongoing and update would be provided when necessary.
The Minister attributed the predicament to a past agreement entered into by the Ogun State government, without federal government’s knowledge or recourse to the Federal Ministry of Foreign Affairs.

He emphasised the importance of registering such arrangements with the relevant authorities to avoid future complications.
His words: “The Attorney-General and I are working on it, both diplomatically and then from the legal perspective as well, to ensure that this issue is resolved.
“But again, this is part of the problem when sub-national actors like state governments take it upon themselves to go into agreements, go into international arrangements, without recourse to the Ministry of Foreign Affairs, without recourse to the federal government, and then when it goes awry, we are left with the problem to deal with.

“That is why it’s always important that such arrangements should be registered with the mission there, with the embassy, with the Ministry of Foreign Affairs, and with the federal government.
“This is something that Ogun state, under a different administration, not this governor, entered into that we’re not aware of. All we know is that they’re going after Nigerian assets.

“That’s why foreign or international negotiations are not the purview of sub-national actors. You should always have those who are experienced in such an area that have the necessary skills and the necessary training to negotiate these sorts of agreements.”
Zhongshan had in 2007, entered into a joint venture with the Ogun State government for the development of a Free Trade Zone.
However, the state government in 2015, terminated the agreement on claims that the firm did not carry out its part of the agreement beyond the construction of a perimeter fence on the land earmarked for the free trade zone.

Dissatisfied, the foreign firm brought an arbitration claim against Nigeria under the China-Nigeria Bilateral Investment Treaty (BIT).
Although Nigeria was said to have challenged the jurisdiction of the arbitration tribunal on grounds of sovereign immunity, the tribunal however, disagreed with the country and slammed a whopping $60 million damages in favour of Zhongshan in March 26, 2021.

Based on the above, Zhongshan had applied for an order of a United Kingdom tribunal to attach Nigeria’s assets in the UK in payment of the judgement debt. Besides, the firm also sought for a similar request from a United States court, over the said debt.
Zhongshan’s application in March subsequently led to the seizure of three presidential aircraft in France on Tuesday.
Reacting to the seizure of the presidential aircraft, the federal government had on Thursday disclosed that it had commenced a move for the release of the three aircraft.

Special Adviser to the President on Communication and Publicity, Office of the Attorney General of the Federation (AGF) and Minister of Justice, Kamarudeen Ogundele, had said the move was being spearheaded by the AGF and the Office of the National Security Adviser (ONSA).
Ogundele had explained that the temporary attachment of the country’s assets was made pursuant to ex parte orders issued by the Judicial Court of Paris dated March 7, 2024 and August 12, 2024 respectively at the instance of the claimant.

Tuggar Highlights Benefits of Tinubu’s Equatorial Guinea Trip

In the meantime, Tuggar described President Bola  Tinubu’s three-day state visit to Equatorial Guinea as a resounding success, yielding significant agreements and strengthening regional cooperation.
Highlight of the visit was the signing of a gas treaty, where Nigeria will supply gas to Equatorial Guinea’s liquefied natural gas plant, utilizing Nigeria’s untapped gas resources off the coast of Calabar and Akwa Ibom.

A stretch of over 150-kilometer pipeline will be constructed to facilitate the gas transfer.
Beyond the gas treaty, Tuggar noted that the two presidents agreed to boost trade between the countries and explore joint export opportunities.

According to him, the resuscitation of the Joint National Commission, with its first meeting scheduled for November, would facilitate cooperation on safety and security in the Gulf of Guinea.

He praised the precedent set by Equatorial Guinea’s 2022 arrest and extradition of a vessel involved in illicit oil activities in Nigeria, which has since reduced piracy incidents in Nigerian waters.

Tuggar said: “It’s been fantastic. The two countries, Nigeria and Equatorial Guinea, have been neighbors and there have been a lot of opportunities that have been identified, but not actualized. But President Tinubu, visiting here, first and foremost, has sealed this gas treaty, it’s been signed, where Nigerian gas will be delivered to Equatorial Guinea.

“Equatorial Guinea has a liquefied natural gas plant, it’s running out of gas, so it’s in need of Nigerian gas to keep the LNG plant going and of course we have untapped gas resources just nearby, off the coast of Calabar, Akwa Ibom. So it’s only a matter of constructing 150 kilometer or so pipeline to the LNG plant here.

“So this is really a remarkable achievement, but that’s not all. Of course, you can see that this is a very fertile land, plantains and bananas grow in the wild and of course, there is so much trade that could be going on that is not and the two presidents have agreed to increase the trade that is going on, and also the trade that the two countries can harness together for exports to other countries.

“So we also have a Joint National Commission that has been inactive, President Tinubu has resuscitated that, along with his counterpart, and we are going to have the first meeting in November.”