Zhongshang Fucheng Industrial Investment Ltd., a Chinese company, has completed the repossession of a luxury jet owned by Nigeria in Canada.
According to Peoples Gazette, Zhongshang recently received the change of custodian paperwork for the Bombardier 6000 BD-700-1A10 aircraft from Canadian authorities in Montreal. This followed a Canadian court’s decision that authorized the firm to seize the jet from Nigeria.
A source familiar with Zhongshang’s activities, who chose to remain anonymous, explained, “The court had granted Zhongshang the right to seize the plane earlier this year, but the transfer of custody from Nigeria to Zhongshang was only recently finalized.”
The source further stated, “Zhongshang will continue to pursue Nigeria’s assets globally until the full amount of the arbitration awards is recovered.”
The report highlights that on March 21, 2024, Judge David Collier of the Superior Court of Quebec dismissed Nigeria’s attempts to retain ownership of the aircraft.
Records show that the aircraft, purchased for $57 million by fugitive Dan Etete, was acquired as part of his extravagant spending spree following his $350 million windfall from the corrupt sale of the OPL 245 oil field in 2010.
Nigeria first seized the jet from Etete in 2016 and detained it in Dubai. It was later flown to Canada on May 29, 2020, where Nigeria quickly secured a court order to seize and hold it at Montreal’s main airport.
A Canadian firm, Tibit, also tried to claim ownership, but Canadian courts permitted Nigeria to retain control of the aircraft.
The report explains that Zhongshang moved to seize the jet in 2023 while seeking to enforce its arbitration awards of over $70 million against Nigeria.
Judge Collier criticized Nigeria’s claim that it was unable to respond to the lawsuit due to the February-March 2023 general elections, calling the argument frivolous. The judge also rejected Nigeria’s sovereign immunity claim, which had already been dismissed by arbitration panels and courts in the UK.
A recent ruling by a U.S. appellate court also affirmed that Nigeria could not claim sovereign immunity to prevent Zhongshang from recovering its arbitration judgment.
With this latest development, Zhongshang has successfully seized Nigerian assets in the UK, France, and Canada. The firm is also anticipating further seizures in Belgium and the U.S. in the near future.
The dispute originated from a conflict between Zhongshang and Ogun State over a 2001 trade treaty between Nigeria and China, which Zhongshang claimed was violated when its rights to a free trade zone were rescinded in 2016.
Despite losing challenges against Chinese investors in at least five countries, Nigeria has consistently denied any wrongdoing in these lawsuits.
