Nigeria’s troubles continue to mount as the nation faces the loss of several valuable assets to the Chinese firm Zhongshang Fucheng Industrial Investment Ltd, following a court order from France.
The Chinese company secured permission to seize Nigerian properties due to an alleged breach of a contractual agreement involving Ogun State, which stemmed from a failed free trade zone (FTZ) deal. The firm is reportedly seeking to collect up to $70 million from a 2021 arbitration ruling.
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In rapid succession, Zhongshang seized three Nigerian presidential jets in France last week. The following day, two Nigerian guest houses in Liverpool, UK, were confiscated, and on Thursday, the firm announced it had finalized the repossession of a luxury jet owned by Nigeria in Canada.
According to reports, the investment group received a change of custodian paperwork for the Bombardier 6000 type BD-700-1A10 aircraft from Canadian authorities in Montreal, thereby securing ownership of the jet.
A source familiar with the matter, who spoke on the condition of anonymity, said, “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. Zhongshang will not stop seizing Nigeria’s assets worldwide until the last cent of the arbitration awards has been paid.”
Nigeria now faces further threats of asset seizures, with properties in Belgium and the United States reportedly targeted in the coming weeks. Despite mounting legal challenges in five countries, Nigeria has been unable to reverse the court orders. The Nigerian government maintains that it did no wrong, but it remains uncertain whether this stance can alter the situation.
After seizing the guest houses in the UK, Zhongshang took steps to list the properties—located at number 15, Aigburth Hall Road and Beech Lodge, 49, Calderstones Road, Liverpool—for sale on the global online marketplace eBay for an estimated $2.2 million.
Last Wednesday, Zhongshang announced the seizure of three Nigerian presidential jets but later released one to be used by President Bola Tinubu for a trip to France. Despite expressing willingness to negotiate with the Nigerian government, the firm has escalated its efforts to confiscate Nigerian assets wherever they are found.
The Chinese firm initially took possession of the Nigerian properties in Liverpool in June 2024, years after Nigeria failed to settle the arbitration judgment from March 26, 2021. Zhongshang was awarded $55,675,000 plus interest of $9,400,000 and costs of £2,864,445 after Ogun State allegedly violated a 2001 trade treaty between Nigeria and China by rescinding rights to a free trade zone in 2016.
Recall that Zhongshang dragged Nigeria before an arbitration panel in the UK in 2018, accusing the country of deploying federal authorities, including the police, immigration, and the export processing authority, at the behest of Ogun State without due process. Court documents revealed that two Zhongshang executives were expelled from Nigeria in 2016, with one allegedly detained and tortured by the police.
