Chinese firm Zhongshang Fucheng Industrial Investment Ltd. has seized yet another Nigerian asset, a luxury jet, in Canada., due to its ongoing legal battle against Nigeria. This latest seizure is part of Zhongshang’s aggressive enforcement of arbitration awards totaling over $70 million against Nigeria, stemming from a protracted legal dispute. The company has been systematically targeting Nigerian assets around the world, with the recent acquisition of the Bombardier 6000 jet being the most high-profile action to date.
The jet, a Bombardier 6000 type BD-700-1A10, was initially taken into custody by Canadian authorities in Montreal after a Quebec court ruled in favor of Zhongshang. The court’s decision followed months of legal wrangling, during which Nigeria attempted to retain ownership of the aircraft. However, Judge David Collier of the Superior Court of Quebec dismissed Nigeria’s claims, paving the way for Zhongshang to take control of the jet.
Zhongshang’s campaign to seize Nigerian assets has been relentless. The company has already confiscated several high-value properties and aircraft, including two properties in Liverpool, a Dassault Falcon 7X in Paris, a Boeing 737, and an Airbus A330. The cumulative value of these assets is estimated to exceed $100 million, with the Bombardier 6000 jet in Canada being one of the most valuable acquisitions.
The legal battle over the Bombardier 6000 jet is rooted in a complex history of corruption and financial misconduct. The jet, identified by its tail number M-MYNA and serial number 9471, was originally purchased for $57 million by Dan Etete, a former Nigerian oil minister. Etete, a fugitive, acquired the aircraft as part of a lavish spending spree following his receipt of over $350 million from the controversial sale of the OPL 245 oil field in 2010. The OPL 245 deal, often referred to as one of the largest corruption scandals in Nigeria’s history, has been the subject of multiple investigations and legal actions.
In 2016, Nigerian authorities seized the jet from Etete, who had been hiding it in Dubai. The aircraft was then flown to Canada on May 29, 2020, where Nigeria quickly secured a court order to keep it at Montreal’s main airport. Despite a Canadian company, Tibit, claiming ownership of the jet, Canadian courts initially ruled in favor of Nigeria, allowing it to retain possession.
However, the situation took a turn in 2023 when Zhongshang Fucheng, seeking to enforce its arbitration awards, moved to seize the aircraft. The Chinese firm’s actions are part of a broader effort to recover funds from Nigeria, following a failed investment deal involving the Ogun State government. The dispute centers around the management of a free trade zone, which led to the arbitration awards against Nigeria.
In his ruling, Judge Collier rejected Nigeria’s arguments, including the claim that the country could not adequately respond to the lawsuit due to the February-March 2023 general elections. The judge deemed this excuse “frivolous and unacceptable,” and also dismissed Nigeria’s assertion of sovereign immunity. The judge’s decision aligned with previous rulings by arbitration panels and courts in the United Kingdom and the United States, which had also ruled against Nigeria in related cases.
The court document, which was obtained by BusinessDay, authorizes Zhongshang Fucheng to seize the Bombardier 6000 jet and any proceeds from its sale. The document states: “The court authorizes Plaintiff to seize before judgment the property described below, currently in the hands or under the control of the Mise-en-cause (Tibit Limited) and/or the Custodians (Aviation Etcetera S.E.C. and/or Starlink Aviation Inc.) or any of their parent, subsidiary or affiliated entities: A Bombardier 6000 Jet (type BD-700-1A10) with Tail number M-MYNA and serial number 9471, registered with the Isle of Man Aircraft Registry (the ‘Aircraft’) and all rights of the Federal Republic of Nigeria in, to or against (i) the Aircraft; and (ii) any proceeds from the sale or transfer of the Aircraft that is payable or belonging to Nigeria.”
The case also sets a precedent for further asset seizures, as Zhongshang is reportedly preparing to target additional Nigerian assets in other jurisdictions, including Belgium, the British Virgin Islands, and the United States.
