Chinese Firm To Sell Seized Nigerian Properties In UK On eBay To Recover $70 Million Judgement Debt
A Chinese investment group is moving to sell two residential properties seized from Nigeria on global marketplace eBay in an effort to recover up to $70 million in arbitration awards.
Zhongshang Fucheng Industrial Investment Ltd took possession of the two properties in Liverpool, United Kingdom, in June 2024, after Nigeria failed to settle a 2021 arbitration ruling.
The properties, located at 15 Aigburth Hall Road and Beech Lodge, 49 Calderstones Road, were targeted following a December 2021 British court order that permitted Zhongshang to seize Nigerian assets in the UK to recoup the $70 million debt, which remains unpaid as of August 2024, with interest accumulating at two per cent per month.
Court records indicate that Zhongshang was awarded $55.7 million, plus $9.4 million in interest, and £2.86 million in legal costs, as part of a dispute stemming from a 2001 trade agreement between Nigeria and China. The conflict arose when Ogun State revoked Zhongshang’s rights to a free trade zone in 2016, a move the company argued violated the treaty.
In 2018, Zhongshang initiated arbitration proceedings against Nigeria in the UK, accusing Nigerian federal agencies, including the police and immigration authorities, of acting on behalf of Ogun State without due process. The firm also alleged that two of its executives were expelled from Nigeria in 2016, with one reportedly detained and tortured by local police.
This latest development adds to Nigeria’s legal challenges abroad, coming only months after the country narrowly avoided a disastrous $11 billion arbitration ruling in favor of Process & Industrial Developments Ltd (P&ID). That ruling was overturned after evidence of bribery and corruption surfaced. However, the Zhongshang case presents a tougher challenge, with courts across Europe, including the UK, Belgium, and France, granting enforcement orders that allow the seizure of Nigerian assets. Efforts to protect Nigeria through sovereign immunity have so far failed, even in the United States.
A consultant working with Zhongshang revealed that the firm is preparing to list the seized Liverpool properties for sale on platforms like eBay, with an estimated value of $2.2 million.
“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.
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.
[NaijaNews]
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