Nigeria Guest House in Liverpool [Photo credit: Google Maps]
A Chinese investment group, Zhongshang Fucheng Industrial Investment Ltd, has taken control of two residential properties linked to the Nigerian government in Liverpool, United Kingdom, as part of an effort to recover up to $70 million awarded in a 2021 arbitration verdict. The company plans to sell these properties on the global online marketplace, eBay, for approximately $2.2 million.
The Gazette Nigeria reported that the seizure of these properties located at 15 Aigburth Hall Road and Beech Lodge, 49 Calderstones Road was authorized after a December 2021 British court order allowed Zhongshang to take possession of Nigerian assets in the UK. This action was taken due to Nigeria’s failure to settle the arbitration judgment, which has accrued interest since the original verdict on March 26, 2021.
Zhongshang’s claims stem from a dispute with Ogun State, Nigeria, which the company says violated a 2001 trade treaty between Nigeria and China by rescinding its rights to a free trade zone in 2016. The company alleges that Nigerian federal agencies, including the police and immigration services, were deployed by Ogun State without following due process, leading to the expulsion and alleged mistreatment of Zhongshang executives.
As of August 2024, the Nigerian government had not paid the $70 million owed, which includes $55,675,000 in damages, $9,400,000 in interest, and legal costs of £2,864,445. To recover the outstanding payment, Zhongshang has been granted enforcement orders in multiple European countries, including the UK, Belgium, and France. The company is also pursuing recovery efforts in the United States, where an appellate panel recently refused to grant Nigeria sovereign immunity protection.
A consultant working with Zhongshang, who spoke under anonymity, confirmed that the company is preparing to list the two Liverpool properties for sale on eBay. “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, adding that eBay might bring buyers faster than other methods.
The properties were seized because they were not classified as diplomatic or consular assets, which would have provided them protection under state immunity. In her ruling on June 14, 2024, Master Lisa Sullivan of the UK High Court, King’s Bench Division, noted that the properties were being used for commercial purposes, leased to residential tenants unconnected with Nigeria or its mission, making them subject to seizure.
The sale of these properties will be conducted transparently, according to the consultant, who emphasized that the Nigerian public has a right to know how much is being recovered. “Zhongshang promised to be transparent with the sale because of the keen public interest of Nigerians in the matter,” the consultant added.
This development follows a similar situation Nigeria faced with a consortium called P&ID, where the country narrowly avoided a $11 billion arbitration decision after it was discovered that P&ID’s owners had engaged in bribery and corruption. However, the Zhongshang case appears to be different, with several European courts already enforcing the judgment against Nigerian assets.