The Chinese company, Zhongshang Fucheng Industrial Investment Ltd, that is at the centre of a contract dispute with the Federal Government has successfully repossessed a luxury jet owned by Nigeria in Canada.
The aircraft, a Bombardier 6000, was officially transferred to Zhongshang following a recent decision by Canadian authorities in Montreal.
This event is part of a broader pattern of asset seizures by the Chinese firm, which has been aggressively pursuing Nigerian assets around the world in response to a failed contract dispute.
The dispute between Nigeria and Zhongshang Fucheng stems from an arbitration award that the Chinese firm obtained after a botched free trade zone project in Ogun State.
The arbitration, which favoured Zhongshang, awarded the company over $70 million. Despite multiple legal challenges from Nigeria, courts in various countries have ruled in favor of Zhongshang, leading to the seizure of Nigerian assets in the UK, France, and Canada.
Further confiscations are anticipated in Belgium and the United States.
The luxury jet, a Bombardier BD-700-1A10, was originally purchased for $57 million by Dan Etete, a former Nigerian petroleum minister.
The jet was part of the wealth accumulated from the controversial sale of the OPL 245 oil field in 2010. The sale, which netted over $350 million, has been mired in allegations of corruption and has resulted in multiple legal battles involving Nigeria and international companies.
Nigeria had initially seized the jet from Etete in 2016 and held it in Dubai before moving it to Canada in 2020.
The Nigerian government, hoping to retain ownership, had the aircraft stored at an airport in Montreal, where it remained under the custody of Canadian authorities.
However, after years of legal wrangling, a Canadian court ruled earlier this year that the jet could be seized by Zhongshang as part of its efforts to enforce the arbitration award.
Judge David Collier of the Superior Court of Quebec dismissed Nigeria’s arguments to retain the jet, including the country’s claim that it could not respond to the lawsuit due to the February-March 2023 general elections.
The judge described Nigeria’s defence as “frivolous and unacceptable,” effectively clearing the way for Zhongshang to take possession of the aircraft.
“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 a source familiar with the matter, who spoke anonymously due to the sensitivity of the issue.
The source also mentioned that Zhongshang is determined to continue seizing Nigerian assets globally until the full amount of the arbitration award is recovered.
This latest seizure marks another blow for Nigeria, which has already seen several of its assets confiscated in other countries.
In the UK, France, and Canada, Nigerian guest houses, presidential jets, and now the Etete jet have been taken over by Zhongshang.
The firm has signalled that it will not stop until the entire arbitration award is satisfied, raising concerns about further losses of Nigerian property abroad.
Despite Nigeria’s repeated denials of wrongdoing and ongoing legal efforts to challenge the arbitration award, the country has faced an uphill battle in international courts.
Legal experts suggest that Nigeria’s sovereign immunity arguments have not been persuasive enough to protect its assets from being seized.
The dispute over the failed free trade zone project in Ogun State, which led to the arbitration award, remains unresolved.
Both Nigeria and the Ogun State government have expressed intentions to settle the matter through negotiations, but so far, these efforts have made little progress.
Talks held in London last September ended without any agreement, and there has been no significant movement since then.
