Chinese investors Zhongshang Fucheng Industrial Investment Ltd. have successfully repossessed a $57 million luxury jet owned by Nigeria in Canada.
This move marks another chapter in the ongoing legal and financial tussle between Nigeria and the Chinese firm.
The Bombardier 6000 type BD-700-1A10 aircraft, initially purchased by fugitive Dan Etete with funds from the controversial OPL 245 oil field sale, was seized by Nigeria in 2016.
However, the jet's custody has been a point of contention ever since. According to reports, Zhongshang moved in 2023 to enforce its arbitration awards of over $70 million against Nigeria.
Judge David Collier of the Superior Court of Quebec quashed Nigeria’s arguments to retain ownership of the aircraft on March 21, 2024.
The judge dismissed Nigeria's claim that it could not respond to the lawsuit due to the February-March 2023 general elections as "frivolous and unacceptable."
"The court granted orders for Zhongshang to seize the plane earlier this year, but the change of custody from Nigeria to Zhongshang was only recently concluded," said an anonymous source familiar with Zhongshang’s activities.
"Zhongshang will not stop seizing Nigeria’s assets worldwide until the last cent of the arbitration awards has been paid."
This repossession follows similar asset seizures by Zhongshang in the UK, France, and Canada, with potential future actions expected in Belgium and the U.S.
The dispute originated from a 2001 trade treaty violation when Ogun State rescinded Zhongshang's free trade zone rights in 2016.
Judge Collier also rejected Nigeria’s sovereign immunity claim, aligning with previous rulings by arbitration panels and courts in the United Kingdom.
An appellate court in the United States recently ruled that Nigeria cannot claim sovereign immunity from Zhongshang’s recovery of its arbitration judgment.
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