A Chinese investment group is moving quickly to recover up to $70 million in arbitration awards from Nigeria, with plans to list two confiscated residential properties for sale on the global online marketplace eBay, sources told Peoples Gazette.
Zhongshang Fucheng Industrial Investment Ltd seized these two buildings, linked to the Nigerian government, in Liverpool, United Kingdom, in June 2024, following Nigeria’s failure to comply with an arbitration ruling issued in 2021, according to The Gazette.
The properties, located at 15 Aigburth Hall Road and Beech Lodge, 49 Calderstones Road, Liverpool, were targeted after a British court order in December 2021 authorized Zhongshang executives to seize Nigerian assets in the UK.
This was to recover the $70 million payment, which remained unpaid as of August 20, 2024, accruing interest at a rate of two percent per month.
Zhongshang was awarded $55,675,000 plus $9,400,000 in interest and £2,864,445 in legal costs, as stated in court documents.
The dispute arose from a 2018 arbitration case between Zhongshang and Ogun State, Nigeria. Zhongshang claimed the state violated a 2001 trade treaty between Nigeria and China by revoking its rights to a free trade zone in 2016.
The company brought Nigeria before a UK arbitration panel, alleging that the federal government allowed its agencies, such as the police, immigration, and export processing authorities, to be used by Ogun State without proper legal procedure.
Court documents reveal that two Zhongshang executives were expelled from Nigeria between mid and late 2016, with one reportedly detained and tortured by the police.
This case has further complicated Nigeria’s legal challenges, coming just months after the country narrowly avoided a similar arbitration ruling that awarded over $11 billion to the P&ID consortium.
The P&ID award was later nullified after it was discovered that the company’s owners engaged in bribery and corruption.
However, the Zhongshang case appears to be different, with enforcement orders already granted by several European courts in the UK, Belgium, France, and other countries, where Nigerian-owned assets, including jets, are being pursued.
A recent appellate decision also denied Nigeria’s request for sovereign immunity protection against Zhongshang’s recovery efforts in the United States.
A consultant working with Zhongshang indicated that the company is preparing to sell the two Liverpool properties, including listing them on eBay, with an asking price of up to $2.2 million for both.
“They said the value of both properties should be around $2.2 million, so they already put together a plan to sell them to willing buyers,” the consultant said under anonymity to discuss client deliberations. “Some websites like eBay might bring buyers faster than other methods.”
Although the properties were owned by Nigeria, they were seized because they were not classified as Nigerian diplomatic or consular assets.
The Gazette learned that the current occupants of the properties had no affiliation with the Nigerian mission in the UK.
While it remains unclear when Nigeria acquired the assets, a senior judge noted that officials had frequently rented out both properties to guests.
In her June 14, 2024, ruling, which allowed Zhongshang to seize the buildings from Nigeria, Master Lisa Sullivan of the UK High Court, King’s Bench Division, stated: “The properties are currently used for the purpose of leases to residential tenants unconnected with Nigeria and its mission. Those are commercial purposes for the purpose of s13(4) of the SIA and therefore the enforcement against the properties is not barred by state immunity.”
A source indicated that the sale would not be conducted in secrecy, as the Nigerian people have the right to know the sale price of all recovered assets until the full amount is recouped.
“Zhongshang promised to be transparent with the sale because of the keen public interest of Nigerians in the matter,” the consultant added.
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