A Chinese investment firm is set to sell two residential properties in Liverpool, UK, which were confiscated from Nigeria as part of efforts to recover up to $70 million in arbitration awards.
The buildings, located at 15 Aigburth Hall Road and Beech Lodge, 49 Calderstones Road, were seized by Zhongshang Fucheng Industrial Investment Ltd after Nigeria failed to comply with a 2021 arbitration ruling. This seizure followed a British court order from December 2021, which permitted Zhongshang to capture Nigerian assets in the UK due to a lingering $70 million payment that continues to accrue interest at a rate of two percent per month.
As of March 26, 2021, Zhongshang was awarded $55,675,000 in damages, $9,400,000 in interest, and £2,864,445 in costs, stemming from a dispute with Ogun State. The conflict arose when Ogun State allegedly violated a 2001 trade agreement by revoking Zhongshang’s rights to a free trade zone in 2016.
The dispute led Zhongshang to seek arbitration in the UK in 2018, asserting that federal bodies such as the police and immigration were misused by Ogun State against them without due process. In 2016, two Zhongshang executives were expelled from Nigeria, with one reportedly detained and tortured.
This ongoing legal battle adds to Nigeria’s mounting legal issues, including a nearly $11 billion arbitration award in favor of P&ID, which was later overturned due to corruption allegations.
Zhongshang’s situation appears more complicated, as several European courts, including those in the UK and Belgium, have granted enforcement orders against Nigeria. Recently, a U.S. appellate court also denied Nigeria sovereign immunity regarding Zhongshang’s recovery efforts.
A Zhongshang consultant revealed that the firm plans to list the Liverpool properties for sale, potentially using eBay, with a combined estimated value of up to $2.2 million.
“They believe the properties are worth around $2.2 million and are preparing to sell them to interested buyers,” said the consultant, who requested anonymity.
“Platforms like eBay might help expedite the sale process.”
Although these properties belonged to Nigeria, they were not classified as diplomatic or consular assets, which allowed their seizure. The current occupants are not connected to the Nigerian mission in the UK. It is not clear when Nigeria acquired these assets, but a senior judge indicated that they were frequently rented out to guests by Nigerian officials.
In a ruling on June 14, 2024, Master Lisa Sullivan of the UK High Court, King’s Bench Division, stated: “The properties are used for residential leasing unrelated to Nigeria and its mission. These are commercial activities under s13(4) of the SIA, thus making enforcement against the properties permissible.”
The source confirmed that the sale would be conducted transparently, given the high level of public interest in the recovery of assets.
“Zhongshang is committed to transparency throughout the sale process due to the significant public interest in Nigeria,” the consultant added.