A Chinese investment group, Zhongshang Fucheng Industrial Investment Ltd, is set to list two residential properties seized from Nigeria for sale on eBay, seeking to recover up to $70 million in arbitration awards.... CLICK TO READ THE FULL NEWS HERE▶▶
The buildings, located at 15 Aigburth Hall Road and Beech Lodge, 49 Calderstones Road in Liverpool, were taken into possession in June 2024 after Nigeria failed to pay a 2021 arbitration judgment.
The arbitration arose from a dispute between Zhongshang and Ogun State, which allegedly violated a 2001 trade treaty with China by revoking Zhongshang’s rights to a free trade zone in 2016. Zhongshang claimed Nigeria’s federal agencies supported Ogun State’s actions, and two of its executives were expelled from Nigeria after one was reportedly detained and tortured.
The British court’s December 2021 order allowed Zhongshang to seize Nigerian assets in the UK to recover the $70 million debt, which has accrued 2% interest per month as of August 20, 2024. The company was initially awarded $55,675,000 plus $9,400,000 in interest and £2,864,445 in costs.
Unlike the recent P&ID case, where a massive $11 billion award was overturned due to bribery, Zhongshang’s case has seen enforcement orders granted in several European countries. An appellate panel in the US also denied Nigeria sovereign immunity protection from Zhongshang’s recovery efforts.
A consultant for Zhongshang revealed that the properties are expected to be listed for around $2.2 million on eBay. The properties were not classified as Nigerian diplomatic or consular assets and were being rented out commercially. UK High Court Judge Master Lisa Sullivan ruled on June 14, 2024, that the properties could be seized as they were not used for diplomatic purposes.
The sale will be conducted transparently to inform the Nigerian public about the recovery process, according to the consultant.
