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Chinese Firm Seizes Another $57 Million Private Jet Nigeria Kept in Canada
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.
Ottawa, Canada- Chinese investors have successfully reclaimed a $57 million luxury jet that had been held in Canada following its seizure from fugitive Dan Etete.
The private jet, a Bombardier 6000 type BD-700-1A10, was recently transferred into the custody of Zhongshang Fucheng Industrial Investment Ltd, a prominent Chinese investment firm.
The Canadian authorities in Montreal completed the paperwork for the change of custodian, marking the culmination of a significant asset recovery operation.
According to the Peoples Gazette, sources close to the matter reveal that months after a Canadian court issued a judgment granting Zhongchang the authority to seize the jet from Nigeria, the action has been underway.
“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 efforts to retain ownership of an aircraft. The jet, valued at $57 million, was purchased by fugitive Dan Etete, who acquired the funds through the controversial sale of the OPL 245 oil field in 2010.
Nigeria initially seized the aircraft from Etete in 2016 and detained it in Dubai. The jet was unexpectedly flown to Canada on May 29, 2020, where Nigerian authorities quickly secured a court order to hold it at Montreal’s main airport. Although a Canadian firm, Tibit, claimed ownership, Canadian courts ruled in favor of Nigeria retaining control over the aircraft.
In 2023, Zhongshang sought to seize the aircraft, which can accommodate up to 19 passengers, as part of its enforcement of arbitration awards exceeding $70 million against Nigeria.
Judge Collier ruled that Nigeria had failed to contest Zhongshang’s seizure of the jet adequately, dismissing the country’s claim that it could not respond to the lawsuit due to the February-March 2023 general elections as frivolous and unacceptable.
The judge also rejected Nigeria’s claim of sovereign immunity, which had been previously addressed by arbitration panels and courts in the United Kingdom. Recently, an appellate court in the United States also ruled against Nigeria’s claim of sovereign immunity concerning Zhongshang’s arbitration judgment recovery.
With the Bombardier luxury aircraft now in Zhongshang’s possession, the firm has successfully seized Nigerian assets in the UK, France, and Canada, including guest houses, presidential jets, and the Etete jet, respectively. Further seizures are anticipated in Belgium and the U.S. in the coming weeks.
Despite losing challenges in at least five countries, Nigeria maintains it has committed no wrongdoing in the lawsuits, which originated from a failed free trade zone contract in Ogun State.
Nigeria and Ogun State have disclosed ongoing efforts to resolve the dispute with Zhongshang, but no progress has been reported since their initial meeting in London from September 27-29, 2023. A spokesperson for President Bola Tinubu has not yet responded to requests for comment on the latest developments.
