A $57 million private airplane that belonged to the Nigerian government was successfully seized by Zhongshang Fucheng Industrial Investment Ltd, a Chinese firm. The aircraft, a Bombardier 6000 type BD-700-1A10, had been kept in storage in Canada after being taken from former energy minister Dan Etete.
Canadian authorities in Montreal provided the appropriate paperwork for the transfer of custodianship to the business, which has been attempting to seize assets in Nigeria.
Zhongshang was granted permission to seize the aircraft from Nigeria after a Canadian court ruled in its favour.
“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,” a person familiar with Zhongshang’s activities said anonymously to discuss the matter. “Zhongshang will not stop seizing Nigeria’s assets worldwide until the last cent of the arbitration awards has been paid.”
On March 21, 2024, Judge David Collier of the Superior Court of Quebec dismissed Nigeria’s attempts to maintain ownership of the aircraft. According to documents, Dan Etete, a wanted man, paid $57 million for the aircraft as part of his extravagant spending spree that followed his nearly $350 million windfall from the dishonest but profitable 2010 sale of the OPL 245 oil field.
In 2016, Nigeria initially took possession of Mr. Etete’s aircraft and imprisoned it in Dubai. On May 29, 2020, it was abruptly flown to Canada, according to flight monitoring websites. Nigeria promptly secured a court order for its confiscation and kept it at Montreal’s main airport. Nigeria was permitted to continue in control of the after a Canadian company, Tibit, attempted to assert ownership.
Zhongshang took action in 2023 to take possession of the aircraft, which had room for 19 people, in order to enforce its arbitration awards against Nigeria totaling more than $70 million.
Judge Collier ruled that Nigeria’s claim that it could not react to the action for nine months due to the February–March 2023 national elections was baseless and inappropriate.
Nigeria failed to contest Zhongshang’s seizure of the aircraft. Additionally, the judge dismissed Nigeria’s claim of sovereign immunity in the same manner as the arbitration panel and UK courts had previously handled it.
An appellate court has allowed Zhongshang to seize Nigeria’s assets, including a Bombardier luxury aircraft, in the UK, France, and Canada, where the country’s guest houses, presidential jets, and the Etete jet have been confiscated. Further seizures may occur in Belgium and the U.S. in the coming weeks.
Despite losing legal battles against the Chinese investors in at least five countries, Nigeria maintains it did no wrong in the lawsuits, which originated from a failed free trade zone contract in Ogun State.
Nigeria and Ogun State have indicated ongoing efforts to settle the dispute with Zhongshang, but no progress has been made since their initial meeting in London from September 27-29, 2023. A spokesperson for President Bola Tinubu did not respond to a request for comments on the recent developments.
