Chinese firm seizes another $57m Nigerian jet in Canada
A Chinese firm, Zhongshang Fucheng Industrial Investment Ltd, has finalized the repossession of a luxury jet owned by Nigeria in Canada.
The Bombardier BD-700-1A10 aircraft’s change of custodian paperwork was recently completed by Canadian authorities in Montreal, following a court ruling months earlier that authorized Zhongshang to seize the jet.
“The court issued orders for Zhongshang to seize the plane earlier this year, but the transfer of custody from Nigeria to Zhongshang was only recently finalized,” an anonymous source familiar with Zhongshang’s activities revealed.
“Zhongshang will continue to pursue Nigeria’s assets worldwide until the full amount of the arbitration awards is paid.”
READ ALSO: Chinese firm targets Nigeria’s global assets after seizing presidential jets
On March 21, 2024, Judge David Collier of the Superior Court of Quebec dismissed Nigeria’s arguments to retain ownership of a luxury jet purchased for $57 million by fugitive Dan Etete. Etete acquired the aircraft as part of his spending spree following a $350 million windfall from the controversial sale of the OPL 245 oil field in 2010.
Nigeria initially seized the aircraft, tail number M-MYNA and serial number 9471, from Etete in 2016 and detained it in Dubai. However, on May 29, 2020, the jet was unexpectedly flown to Canada, where Nigeria promptly secured a court order for its seizure and impounded it at Montreal’s main airport. Although a Canadian firm, Tibit, attempted to claim ownership, Canadian courts upheld Nigeria’s control over the aircraft.
In 2023, Zhongshang sought to seize the jet, which can accommodate up to 19 people, while pursuing enforcement of its arbitration awards totaling over $70 million against Nigeria.
Judge Collier stated that Nigeria failed to contest the aircraft’s seizure by Zhongshang, dismissing the country’s argument that it could not respond to the lawsuit due to the February-March 2023 general elections as frivolous and unacceptable.
READ ALSO: French Court orders seizure of 3 Nigerian jets over dispute with Chinese firm
The judge also rejected Nigeria’s claim of sovereign immunity, consistent with findings from the arbitration panel and courts in the United Kingdom. Additionally, a recent appellate court in the United States ruled that Nigeria cannot claim sovereign immunity in the context of Zhongshang’s recovery of its arbitration judgment.
With the Bombardier luxury aircraft now in its possession, Zhongshang has successfully seized Nigerian assets in the UK, France, and Canada. The seizures include the country’s guest houses, presidential jets, and the Etete jet, with potential further actions anticipated in Belgium and the U.S. in the coming weeks.
Although Nigeria has lost all its legal challenges against the Chinese firm in at least five countries, it has consistently maintained that it has committed no wrongdoing in the lawsuits. These legal battles originated from a disputed free trade zone contract in Ogun State.
Nigeria and Ogun State have disclosed ongoing efforts to resolve the issue with Zhongshang, though no progress has been reported since their initial meetings in London from September 27-29, 2023. A spokesperson for President Bola Tinubu has not yet responded to requests for comments on the latest developments.
Proofreading by Uchechi Ojo, Sub-editor at Neptune Prime.
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