$70m arbitration award: Chinese firm puts up FG’s buildings in UK for sale
…Promises transparency in recovery process
Chinese investment group, Zhongshang Fucheng Industrial Investment Ltd, has taken drastic measures to recover a $70 million arbitration award from Nigeria by seizing two residential properties in Liverpool, UK, and listing them for sale on online marketplaces like eBay.
The properties, located at 15 Aigburth Hall Road and Beech Lodge, 49 Calderstones Road, were taken over in June 2024 after Nigeria failed to settle a 2021 arbitration ruling.
The properties are valued at $2.2 million and are being sold to recoup the debt, which remains unpaid as of August 2024, with interest accumulating at two percent per month.
According to court records, 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.
A consultant working with Zhongshang revealed that the firm is preparing to list the seized Liverpool properties for sale on platforms like eBay. “They’ve decided to sell them through online channels like eBay, as that might attract buyers more quickly,” the consultant said.
The properties were not classified as diplomatic or consular assets, making them vulnerable to seizure. 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.
In a June 2024 ruling, Master Lisa Sullivan of the UK High Court, King’s Bench Division, ruled in favour 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.”
