Chinese company Zhongshang Fucheng Industrial Investment Ltd. has completed the repossession of a luxury jet owned by Nigeria, this time located in Canada.
According to Peoples Gazette, Zhongshang recently secured a change of custodian paperwork for the Bombardier 6000 type BD-700-1A10 aircraft from Canadian authorities in Montreal. This followed a Canadian court ruling that granted Zhongshang the right to seize the jet from Nigeria.
“The court had granted orders for Zhongshang to seize the plane earlier this year, but the transfer of custody from Nigeria to Zhongshang was only recently finalized,” said a source familiar with Zhongshang’s operations, who requested anonymity.
“Zhongshang will continue to seize Nigeria’s assets globally until the full amount of the arbitration awards has been settled.”
Judge David Collier of the Superior Court of Quebec rejected Nigeria’s attempt to retain ownership of the aircraft on March 21. The jet, valued at $57 million, was purchased by fugitive Dan Etete following a $350 million windfall from the controversial sale of the OPL 245 oil field in 2010.
Nigeria initially seized the aircraft from Etete in 2016, subsequently trapping it in Dubai. Flight tracking data showed the jet was moved to Canada on May 29, 2020, where Nigeria then secured a court order to hold it at Montreal’s main airport.
Although a Canadian firm, Tibit, sought to claim ownership, Canadian courts initially allowed Nigeria to retain control of the aircraft. However, in 2023, Zhongshang sought to enforce its arbitration awards, valued at over $70 million, by pursuing the aircraft.
Judge Collier dismissed Nigeria’s argument that it could not respond to the lawsuit due to the February-March 2023 general elections, labeling it as frivolous. The judge also rejected Nigeria’s claim of sovereign immunity, a position previously disallowed by arbitration panels and courts in the UK.
An appellate court in the United States recently ruled against Nigeria’s attempt to claim sovereign immunity in relation to Zhongshang’s arbitration judgment.
Zhongshang has now successfully seized Nigerian assets in the UK, France, and Canada, with additional seizures expected in Belgium and the U.S. in the coming weeks. The dispute originated from a conflict between Zhongshang and Ogun State over a 2001 trade treaty between Nigeria and China, which Zhongshang claims was violated when its rights to a free trade zone were revoked in 2016.
