Three Nigeria-owned jets linked to the presidential jets fleet have been reportedly seized in France and Switzerland due to an ongoing dispute between Ogun state and Chinese company Zhongshan. The seizures followed a ruling by a French court, which authorised the aircraft confiscation......READ THE FULL STORY>>.....READ THE FULL STORY>>
Details of the dispute between Nigeria and Zhongshan
Leadership reports that the legal battle stems from a 2010 agreement in which Zhongshan, through its parent company Zhuhai Zhongfu Industrial Group Co. Ltd, secured rights to develop a free trade zone in Ogun state, Nigeria.
In 2011, Zhongshan established a Nigerian entity, Zhongfu International Investment (NIG) FZE, to manage the project under the authority of the Ogun State government.
However, tensions escalated in July 2016 when Zhongfu accused the state government of abruptly terminating its appointment and attempting to install a new manager for the free trade zone.
The dispute led to Zhongfu initiating an investment treaty arbitration under the bilateral investment treaty between China and Nigeria (the China-Nigeria BIT) in 2016.
The arbitration tribunal ruled in favour of Zhongshan, awarding the company approximately $70 million in compensation, citing Nigeria’s breach of its obligations under the BIT.
The award breakdown is $55.7 million, with an additional $9.4 million in interest and legal costs amounting to £2.86 million.
The company has instituted various legal cases in the United Kingdom to enforce the arbitration awards against the Nigerian government.
Legit had reported that to enforce the ruling, Nigeria was asked to forfeit two properties worth between £1.3 million and £1.7 million
More properties owned by Nigeria were targeted
Continuing its efforts, Zhongshan took the Nigerian government to a French court to obtain permission to seize additional properties.
Premium Times reports that the company requested to seize three Nigerian-owned aircraft undergoing maintenance in France.
The Nigerian government reportedly paid over $100 million for the Airbus A330, which has not yet been delivered to the country.
The jets seized include a Dassault Falcon 7X stationed at Paris-Le Bourget airport, a Boeing 737 and an Airbus A330 located at Basel-Mulhouse airport in Switzerland.
Nigerian states with highest domestic debt
Legit earlier reported that while many tend to shy away from debt, regarding it as a slavery tool to creditors, recent analysis has proven that a moderate amount of debt is functional for economic growth.
A report by the International Monetary Fund (IMF) said domestic debt starts to impede growth over a ratio of 35% of bank deposits, supporting conventional worries about crowding out and bank efficiency.
The domestic debt data report is generated from the signed-off submissions received from the 36 states of the federation and the Federal Capital Territory (FCT).
