A Chinese investment group is set to sell two residential properties seized from Nigeria on eBay to recover up to $70 million in arbitration awards.
Zhongshang Fucheng Industrial Investment Ltd took control of the properties in Liverpool, UK, in June 2024, after Nigeria failed to fulfill a 2021 arbitration ruling.
Properties Targeted for Sale
The properties, located at 15 Aigburth Hall Road and Beech Lodge, 49 Calderstones Road, were seized following a December 2021 British court order allowing Zhongshang to recover the outstanding debt, which has been accumulating interest at two percent per month since then. As of August 2024, the total amount owed includes $55.7 million in principal, $9.4 million in interest, and £2.86 million in legal costs.
Background of the Dispute
The conflict traces back to a 2001 trade agreement between Nigeria and China, which was allegedly violated when Ogun State revoked Zhongshang’s rights to a free trade zone in 2016. Following this, Zhongshang initiated arbitration in 2018, claiming that Nigerian federal agencies acted unlawfully on behalf of Ogun State. The case has also highlighted serious allegations, including the detention and torture of two Zhongshang executives in Nigeria.
Legal Challenges for Nigeria
This situation compounds Nigeria’s ongoing legal issues abroad, particularly after narrowly avoiding an $11 billion arbitration ruling in favor of Process & Industrial Developments Ltd (P&ID) earlier this year, which was overturned due to evidence of corruption. However, the Zhongshang case has seen multiple European courts, including those in the UK, Belgium, and France, granting enforcement orders for the seizure of Nigerian assets, including jets.
Sale of Properties
A consultant for Zhongshang indicated that the properties would be listed on eBay, with an estimated combined value of $2.2 million. The properties, not classified as diplomatic or consular assets, were previously rented to private tenants, making them eligible for seizure under UK law.
Master Lisa Sullivan of the UK High Court affirmed that the properties were leased to tenants with no ties to Nigeria’s diplomatic mission, thus allowing for enforcement under commercial purposes as outlined in the State Immunity Act.
Zhongshang has committed to a transparent sales process, promising to keep the Nigerian public informed about the recovery efforts.
