Chinese firm continues seizure spree with another Nigerian jet in Canada

Tinubu expected to tackle assets stripping at China-Africa summit in September 

Barely a week after the lid blew open on the botched Zhongshan Fucheng Industrial Investment Co. Limited deal with Ogun State government, which resulted in the grounding of three presidential jets belonging to the Federal Government in Europe, the Chinese firm continued its seizure spree of Nigerian assets as it yesterday took over another luxury jet in Canada, owned by the most populous black nation.

The Chinese firm had recently received a change of custodian paperwork for the Bombardier 6000 type BD-700-1A10 aircraft from Canadian authorities in Montreal months after a Quebec court issued a judgment that empowered Zhongshang to seize the jet from Nigeria.

In its pursuit of enforcement of its arbitration awards of over $70 million against Nigeria, Zhongshang has confiscated several Nigerian assets overseas, including two properties in Liverpool, a Dassault Falcon 7X in Paris, a Boeing 737, an Airbus A330 valued at over $100 million with the Bombardier 6000 in Canada being the latest.

Using asset tracing tools, Zhongshang successfully gained control of the luxury jet with further seizures anticipated in Belgium, the British Virgin Islands and the United States (U.S.) despite Nigeria’s continued denial of wrongdoing in a legal battle that stemmed from a botched deal between the Chinese investor and Ogun State government over the management of a free trade zone.

On March 21, 2024, Judge David Collier of the Superior Court of Quebec dismissed Nigeria’s attempt to retain ownership of a Bombardier 6000 jet, which records show was acquired for $57 million by Dan Etete, a fugitive, as part of a massive spending spree following his receipt of over $350 million from the corrupt sale of the OPL 245 oil field in 2010.

The jet, identified by its tail number M-MYNA and serial number 9471, was initially seized from Etete by Nigerian authorities in 2016 and held in Dubai. In a surprising move, the jet was flown to Canada on May 29, 2020, where Nigeria quickly secured a court order to seize it and keep it at Montreal’s main airport.

Although a Canadian company, Tibit, claimed ownership, the Canadian courts ruled in favour of Nigeria, allowing it to retain possession. However, in 2023, Zhongshang Fucheng, the Chinese firm, moved to seize the aircraft as part of its efforts to enforce arbitration awards against Africa’s largest oil producer.

Judge Collier ruled against Nigeria, rejecting its arguments, including the claim that it could not respond to the lawsuit due to the February-March 2023 general elections, deeming the excuse “frivolous and unacceptable.” The judge also dismissed Nigeria’s assertion of sovereign immunity, aligning with earlier rulings by an arbitration panel and courts in the United Kingdom and the United States.

Zhongshang will not stop seizing Nigeria’s assets worldwide until the last cent of the arbitration awards has been paid,” a source familiar with the firm’s activities said.

Though Nigeria has lost all its challenges against the Chinese investors in at least five countries, she maintains no wrongdoing in the lawsuits, which stemmed from a mismanaged free trade zone contract in Ogun State and has assured the nation of ongoing resolution efforts.

This is coming ahead of the ministerial conference of the Forum on China-Africa Cooperation (FOCAC), in Beijing in early September, which will be the ninth of such events.

Barring any unforeseen circumstances, President Tinubu would pay his first official visit to China to participate in the summit of the heads of state and government of the 54 member states plus China, of the FOCAC slated to hold in Beijing from September 4-6.

Since its inception in 2000, FOCAC has provided a platform for cross-continental solidarity and economic cooperation, solidifying the bonds between China and African nations. The upcoming conference will convene senior African and Chinese representatives in Beijing to discuss the future trajectory of Sino-African cooperation.

When President Bola Tinubu travels to Beijing for the FOCAC summit to drum up investment and prop up the naira, the elephant in the room will be Nigeria’s publicised feud with Zhongshan, which has described its ordeal with Nigeria as a “foreign investor’s worst nightmare” despite Nigerian government’s effort to protect its assets by offering $5 million in compensation.

The summit themed “Joining hands to advance modernisation and build a high-level China-Africa community with a shared future” will have leaders of African member states, representatives of relevant African regional and other organisations, as well as international organisations, in attendance.

About two weeks ago, China’s Vice Minister of Foreign Affairs, Mr. Chen Xiaodong, visited Nigeria and delivered an invitation to President Tinubu. He told the Nigerian leader that “he is an important leader and strategist in Africa”, adding that his visit to China and “meeting with President Xi Jinping will open up more discussions and opportunities for Nigeria and Africa”.

Receiving the Chinese vice foreign minister, President Tinubu commended “what President Xi Jinping is doing in Africa; helping with capital mobilisation for projects that positively impact the lives and livelihoods of our people in Africa.” He noted that “the infrastructure need of Africa is monumental, particularly that of Nigeria. President Tinubu, who accepted the invitation to visit China, expressed his hope that such a visit would strengthen the existing bilateral cooperation between the two countries.