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Chinese Firm Seizes, Sets To Sell Nigeria’s UK Assets
![Photo Credit: Peoplesgazette](https://gwg.ng/wp-content/uploads/2024/08/Screenshot_20240821-082958_Photos.jpg)
A Chinese investment group, Zhongshang Fucheng Industrial Investment Ltd, is swiftly moving to recover up to $70 million in arbitration awards from Nigeria, with plans to sell two confiscated residential properties on the global online marketplace eBay, according to Peoples Gazette.
In June 2024, Zhongshang seized the two buildings, located in Liverpool, United Kingdom, after Nigeria failed to comply with a 2021 arbitration ruling. The properties, at 15 Aigburth Hall Road and Beech Lodge, 49 Calderstones Road, were targeted following a British court order in December 2021, which allowed Zhongshang to seize Nigerian assets in the UK.
This action was taken to recover the $70 million award, which remains unpaid as of August 2024, with interest accruing at two percent per month. Zhongshang had been awarded $55,675,000, along with $9,400,000 in interest and Ā£2,864,445 in legal costs, as per court documents.
The dispute traces back to a 2018 arbitration case between Zhongshang and Ogun State, Nigeria. Zhongshang accused the state of violating a 2001 trade treaty between Nigeria and China by revoking its rights to a free trade zone in 2016. The company claimed that Nigerian federal agencies, including the police, immigration, and export processing authorities, were used by Ogun State without proper legal procedure.
![Photo Credit: Peoplesgazette](https://gwg.ng/wp-content/uploads/2024/08/Screenshot_20240821-082958_Photos.jpg)
Court records indicate that two Zhongshang executives were expelled from Nigeria between mid and late 2016, with one reportedly detained and tortured by the police.
This case adds to Nigeriaās growing legal troubles, coming just months after the country narrowly avoided a similar arbitration ruling that could have cost over $11 billion to the P&ID consortium. Unlike the P&ID case, which was later nullified due to evidence of bribery and corruption, the Zhongshang case has seen enforcement orders granted by multiple European courts, including those in the UK, Belgium, and France. Nigerian-owned assets, including jets, are currently being pursued.
Additionally, a recent appellate decision denied Nigeriaās request for sovereign immunity protection against Zhongshangās recovery efforts in the United States.
A consultant working with Zhongshang, who spoke anonymously, disclosed that the company is preparing to sell the two Liverpool properties, with an asking price of up to $2.2 million for both. The properties may be listed on platforms like eBay to attract quick buyers.
Despite being owned by Nigeria, the properties were seized because they were not classified as diplomatic or consular assets. It was revealed that the current occupants of the properties had no ties to Nigeriaās mission in the UK. The properties had often been rented out to guests, further supporting their classification as commercial assets under UK law.
In her June 14, 2024, ruling, Master Lisa Sullivan of the UK High Court, Kingās Bench Division, noted: āThe properties are currently used for the purpose of leases to residential tenants unconnected with Nigeria and its mission. Those are commercial purposesā¦and therefore the enforcement against the properties is not barred by state immunity.ā
The consultant assured that the sale process would be transparent, allowing Nigerians to be informed about the sale prices of the assets until the full recovery amount is achieved.
āZhongshang promised transparency with the sale due to the keen public interest of Nigerians in the matter,ā the consultant added.
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