A Chinese company, Zhongshang Fucheng Industrial Investment Ltd., has officially repossessed a luxury jet previously owned by Nigeria, following a legal dispute in Canada.
The repossession was confirmed after Canadian authorities in Montreal approved a change of custodian paperwork for the Bombardier 6000 type BD-700-1A10 aircraft. This decision came after a Canadian court ruled in favor of Zhongshang, granting the firm the right to seize the jet from Nigeria.
An anonymous source familiar with the matter revealed that the court’s authorization for the aircraft’s seizure was granted earlier this year, but the formal transfer of ownership was only recently completed. The source further disclosed that Zhongshang remains determined to continue seizing Nigeria’s assets globally until the full amount of the arbitration awards is paid off.
On March 21, 2024, Judge David Collier of the Superior Court of Quebec dismissed Nigeria’s attempts to retain ownership of the aircraft. Court documents indicate that the jet was originally purchased for $57 million by fugitive Dan Etete, following a significant profit from the controversial sale of the OPL 245 oil field in 2010. The aircraft was first confiscated by Nigerian authorities in 2016 and held in Dubai before it was unexpectedly flown to Canada on May 29, 2020, where Nigeria secured a court order to detain the jet at Montreal’s main airport.
Despite a claim to the aircraft by a Canadian firm, Tibit, Canadian courts ruled in favor of Nigeria at the time. However, Zhongshang initiated legal action in 2023 to claim the jet while seeking to enforce its arbitration awards totaling over $70 million against Nigeria. Judge Collier rejected Nigeria’s claim that it was unable to contest the seizure due to the February-March 2023 general elections, calling the argument “frivolous and unacceptable.” He also dismissed Nigeria’s attempt to invoke sovereign immunity, in line with previous rulings from the arbitration panel and UK courts.
In a related development, a U.S. appellate court recently determined that Nigeria could not claim sovereign immunity in efforts to prevent Zhongshang from recovering its arbitration judgment. With the latest repossession in Canada, Zhongshang has now successfully seized Nigerian assets in the UK, France, and Canada, and is reportedly anticipating further seizures in Belgium and the U.S.
The dispute between Zhongshang and Nigeria’s Ogun State dates back to 2016 when the state rescinded the company’s rights to a free trade zone, allegedly violating a 2001 trade treaty between Nigeria and China. Although Nigeria has consistently denied any wrongdoing, it has lost all legal challenges against Zhongshang in at least five countries.
