The federal government yesterday responded to the alleged seizure of three presidential planes in Paris, France, due to a dispute involving a private Chinese firm and the Ogun State government, asserting that the aircraft are sovereign assets and, therefore, immune from confiscation.
Citing international law principles, the government acknowledged that actions by a sub-national entity could be attributed to the state itself. However, it stated that it had commenced both legal and diplomatic efforts to recover the aircraft in the presidential fleet.
Simultaneously, the Ogun State government criticized the judicial process that led to the provisional attachment of the planes and announced steps to vacate the order. Labour Party (LP) presidential candidate in the 2023 election, Peter Obi, described the reported seizure as an international embarrassment and demanded a full explanation.
The Chinese company, Zhongshan Fucheng Industrial Investment Co. Limited, is seeking to enforce a Final Award granted in its favor on March 26, 2021, against Ogun State. The matter began in 2007 with a contract between Ogun State and Zhongshan Fucheng to manage a free-trade zone. The parties entered into a dispute in 2015, and arbitration commenced the following year. The arbitral panel awarded over $60 million against the Federal Government of Nigeria, a co-defendant, after Zhongshan had built a perimeter fence around the free-trade zone.
The Ogun State government, based on legal advice, decided to resist the enforcement of the award. The resistance was successful in eight different jurisdictions, with pending appeals against recognition orders in both the US and UK. Additionally, the Ogun State government engaged Zhongshan in settlement discussions on reasonable terms. The last meeting, which took place in London in September 2023, included Governor Dapo Abiodun, Attorney General of the Federation (AGF) and Minister of Justice Lateef Fagbemi, and several state officials.
Initially, Zhongshan was open to Ogun State’s offer but insisted on full payment of the arbitration debt by the second day, leading to a breakdown of mediation. The parties agreed to reconvene in the first quarter of this year. Since then, the Chinese company allegedly became evasive and embarked on a series of enforcement proceedings, which the legal team appointed by the federal and Ogun State governments successfully opposed.
Following news of the aircraft seizure, various agencies and the Ogun State government have provided clarification. Special Adviser to the President on Communication and Publicity, Office of the AGF and Minister of Justice, Mr. Kamarudeen Ogundele, stated that steps to stay the enforcement order were being spearheaded by the AGF and the Office of the National Security Adviser (ONSA).
Ogundele explained that the federal government became aware of the interim attachment of the three presidential aircraft undergoing routine maintenance in France on August 14. He noted that the temporary attachment resulted from ex parte orders issued by the Judicial Court of Paris dated March 7, 2024, and August 12, 2024, at Zhongshan’s instance.
The statement clarified, “Though the dispute originated from engagements of Ogun State Government, the consequential enforcement actions are directed against the federal government and its assets in line with extant principles of international law, which hold that the actions of a subnational or local entity are attributable to the state or country itself.”
