Chinese Firm Auction Nigerian Assets eBay
A Chinese investment group, Zhongshang Fucheng Industrial Investment Ltd, is set to sell two residential properties seized from Nigeria on eBay to recover up to $70 million in arbitration awards according to Peoples Gazette.
The properties, located at 15 Aigburth Hall Road and Beech Lodge, 49 Calderstones Road, Liverpool, UK, were taken over by Zhongshang in June 2024 after Nigeria failed to settle a 2021 arbitration ruling.
The seizure follows a December 2021 British court order that allowed Zhongshang to claim Nigerian assets in the UK to recoup the debt, which has since accrued interest at two percent per month. As of August 2024, the debt remains unpaid.
The dispute stems from a 2001 trade agreement between Nigeria and China, which led to a conflict when Ogun State revoked Zhongshang’s rights to a free trade zone in 2016.
EKO HOT BLOG reports that the company, awarded $55.7 million plus $9.4 million in interest and £2.86 million in legal costs, initiated arbitration proceedings in the UK in 2018. Zhongshang accused Nigerian federal agencies of acting on behalf of Ogun State without due process, including the alleged detention and torture of one of its executives in 2016.
This move by Zhongshang adds to Nigeria’s growing legal challenges abroad, following the country’s recent escape from an $11 billion arbitration ruling in favor of Process & Industrial Developments Ltd (P&ID).
Unlike the P&ID case, courts in the UK, Belgium, France, and other European countries have upheld enforcement orders against Nigeria. Efforts to invoke sovereign immunity have failed across these jurisdictions, including the US.
Zhongshang plans to list the seized Liverpool properties, valued at approximately $2.2 million, for sale on platforms like eBay.
Chinese Firm Auction Nigerian Assets eBay
“They’ve decided to sell them through online channels like eBay, as that might attract buyers more quickly,” the consultant told Peoples Gazette.
Although the properties are owned by Nigeria, they were not classified as diplomatic or consular assets, making them vulnerable to seizure.
It’s unclear when the Nigerian government acquired the properties, but court filings indicate that they had been rented out to private tenants unconnected to Nigeria’s diplomatic mission in the UK.
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In a June 2024 ruling, Master Lisa Sullivan of the UK High Court, King’s Bench Division, ruled in favor of Zhongshang’s claim, stating, “The properties are currently leased to residential tenants with no ties to Nigeria’s mission, making them eligible for seizure under commercial purposes outlined in section 13(4) of the State Immunity Act.”
Zhongshang has assured that the sales process will be transparent, with the proceeds being made public in light of strong Nigerian interest in the case. “Zhongshang is committed to keeping the Nigerian people informed about the recovery process,” the consultant added.
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