In a significant blow to Nigeria’s international standing, Chinese investors Zhongshang Fucheng Industrial Investment Ltd. have successfully repossessed a luxury jet belonging to Nigeria in Canada. The aircraft, a Bombardier 6000 type BD-700-1A10, valued at $57 million, was seized following a Canadian court ruling that favored Zhongshang’s claims over the jet. The move comes as part of a broader effort by the Chinese firm to recover assets in various countries.
The repossession, finalized in Montreal, stems from a long-standing dispute between Zhongshang and the Nigerian government. The Chinese company is actively pursuing the enforcement of arbitration awards exceeding $70 million, linked to an alleged violation of a 2001 trade treaty between Nigeria and China. Zhongshang’s rights to a free trade zone in Ogun State were rescinded in 2016, sparking a series of legal battles across multiple jurisdictions.
Judge David Collier of the Superior Court of Quebec ruled in favor of Zhongshang, dismissing Nigeria’s arguments to retain ownership of the aircraft. Nigeria’s defense, which cited disruptions caused by the February-March 2023 general elections as a reason for delayed legal responses, was labeled “frivolous and unacceptable” by the judge. The court also rejected Nigeria’s claims of sovereign immunity, a position echoed by courts in the United Kingdom and the United States.
The jet, originally purchased by Nigerian fugitive Dan Etete following the controversial sale of the OPL 245 oil field in 2010, had been seized by Nigeria in 2016 and held in Dubai before being flown to Canada in 2020. Although a Canadian firm, Tibit, initially attempted to claim ownership of the aircraft, Nigerian authorities maintained control until Zhongshang stepped in.
Zhongshang has made it clear that this seizure is part of a broader strategy to recover Nigerian assets worldwide until the full arbitration awards have been paid. The firm has already seized assets in the UK, France, and Canada, with further actions expected in Belgium and the United States.
This ongoing legal battle underscores the financial and diplomatic strain on Nigeria as it faces mounting challenges from international investors and arbitration rulings. Despite losing legal battles in at least five countries, Nigeria continues to deny any wrongdoing in the lawsuits, yet the pressure to resolve these disputes remains high as further asset seizures loom.
