A Chinese investment group, Zhongshang Fucheng Industrial Investment Ltd, is set to sell two residential properties seized from Nigeria on the global marketplace eBay in an effort to recover up to $70 million in arbitration awards. The properties, located in Liverpool, United Kingdom, were taken over by the group in June 2024 after Nigeria failed to settle a 2021 arbitration ruling.
The properties in question, situated at 15 Aigburth Hall Road and Beech Lodge, 49 Calderstones Road, became the target of a December 2021 British court order that allowed Zhongshang to seize Nigerian assets in the UK. This action was taken to recover the $70 million debt, which has remained unpaid as of August 2024, with interest accruing at a rate of two per cent per month.
Court records show that Zhongshang was awarded $55.7 million, along with $9.4 million in interest and £2.86 million in legal costs. This was the result of a dispute that originated from a 2001 trade agreement between Nigeria and China. The conflict escalated when the Ogun State government 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 claimed that two of its executives were expelled from Nigeria in 2016, with one allegedly being detained and tortured by local police.
This move by Zhongshang adds to the growing list of Nigeria’s legal challenges abroad. It comes just months after the country narrowly avoided a disastrous $11 billion arbitration ruling in favor of Process & Industrial Developments Ltd (P&ID).
However, the Zhongshang case poses a more significant 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 been unsuccessful, even in the United States.
A consultant working with Zhongshang disclosed that the firm is preparing to list the seized Liverpool properties for sale on platforms like eBay, estimating their value at around $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.
Despite being owned by Nigeria, the properties were not classified as diplomatic or consular assets, making them vulnerable to seizure. It remains unclear when the Nigerian government acquired these properties, but court filings indicate they had been rented out to private tenants with no connection 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. She stated, “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 the public that the sales process will be transparent, with the proceeds being made public, recognizing the strong interest in the case from the Nigerian people. “Zhongshang is committed to keeping the Nigerian people informed about the recovery process,” the consultant added.
