Chinese investment Firm Zhongshang Fucheng Industrial Investment Ltd is set to sell two Nigerian properties on eBay in the UK to recover a $70 million judgement debt owed by the Nigeria Government.
Zhongshang Fucheng seized the properties in June 2024 after Nigeria failed to settle an arbitration ruling from 2021. The properties in question are located at 15 Aigburth Hall Road and Beech Lodge, 49 Calderstones Road.
The seizure followed a December 2021 British court order that authorized Zhongshang to claim Nigerian assets in the UK to cover the outstanding debt, which has remained unpaid as of August 2024. Interest on the debt is accumulating at a rate of 2% per month.
Court documents reveal that Zhongshang was granted a total of $55.7 million in damages, an additional $9.4 million in interest, and £2.86 million in legal fees. These amounts are part of a dispute originating from a 2001 trade agreement between Nigeria and China.
The disagreement intensified when Ogun State, Nigeria, revoked Zhongshang’s rights to a free trade zone in 2016, which Zhongshang claims breached the treaty.
In 2018, Zhongshang launched arbitration proceedings against Nigeria in the UK. The company accused Nigerian federal agencies, including the police and immigration authorities, of acting on behalf of Ogun State without proper legal process.
Zhongshang also alleged that two of its executives were expelled from Nigeria in 2016, with one being detained and allegedly tortured by local authorities.
This situation is a significant addition to Nigeria’s ongoing legal issues abroad. Just months ago, Nigeria narrowly avoided an $11 billion arbitration ruling in favor of Process & Industrial Developments Ltd (P&ID), which was overturned after evidence of bribery and corruption emerged.
However, the Zhongshang case presents a more complicated challenge. Courts in Europe, including the UK, Belgium, and France, have granted enforcement orders allowing the seizure of Nigerian assets. Efforts to claim sovereign immunity have so far been unsuccessful, even in the United States.
A consultant working with Zhongshang revealed that the company plans to list the seized properties on eBay, estimating their combined value at around $2.2 million. The decision to use online platforms like eBay is aimed at attracting potential buyers quickly.
According to the consultant, “They’ve decided to sell them through online channels like eBay, as that might attract buyers more quickly,” when speaking to Peoples Gazette.
Although these properties are owned by Nigeria, they are not categorized as diplomatic or consular assets, making them susceptible to seizure. The exact timing of Nigeria’s acquisition of these properties is unclear. However, court documents indicate that they were rented out to private tenants who had 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, 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.
