The Chinese firm, Zhongshang Fucheng Industrial Investment Ltd, has reportedly seized another one of Nigeria’s assets, this time, an aircraft in Canada, this after it secured an order from a French court to series a number of jets, including a presidential jet last week.
The Chinese firm secured an order to confiscate Nigerian properties over an alleged breach of contractual agreement by Ogun State of Nigeria which stemmed from a failed free trade zone deal, and it has moved quickly to take over Nigeria’s assets in Europe and North America to collect up to $70 million from a 2021 arbitration verdict.
Three Nigerian jets were seized in France last week, followed quickly by the seizure of two Nigerian guest houses in Liverpool UK on Wednesday. And on Thursday the spate of seizure continued when the firm announced that it has finalized repossession of a luxury jet owned by Nigeria in Canada.
The investment group reportedly received a change of custodian paperwork for the Bombardier 6000 type BD-700-1A10 aircraft from Canadian authorities in Montreal, and has exerted ownership over the aircraft.
The firm had reportedly obtained a court judgment from a Canadian Court several months ago to enable it to seize the Nigerian jet.
“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 source said.
“Zhongshang will not stop seizing Nigeria‘s assets worldwide until the last cent of the arbitration awards has been paid,“ the source added.
Nigeria faces more threats of property seizures as some of its assets in Belgium and the US are up for grabs in the coming weeks.
Nigeria has mounted challenges against the court orders but it has not been successful in five countries. The country has, however, said it did no wrong. It is not certain how this assertion can save the situation for the country.
According to court documents, Zhongshang was awarded $55,675,000 plus interest of $9,400,000 and costs of £2,864,445 as of the date of the arbitration verdict on March 26, 2021. The firm said Ogun State violated a 2001 trade treaty between Nigeria and China when its rights to a free trade zone were rescinded in 2016.
It was also reported that the company dragged Nigeria before the arbitration panel in the UK in 2018, alleging that Nigeria allowed its federal organs like the police, immigration and export processing authority to be deployed by Ogun State without due process. Court documents said two Zhongshang executives were expelled from Nigeria between mid and late 2016 after one of them had allegedly been detained and tortured by the police.
