A Chinese investment group, aiming to recover up to $70 million in arbitration awards from Nigeria, is set to list two residential properties it seized from the country for sale on the global online marketplace eBay.
Zhongshang Fucheng Industrial Investment Ltd took possession of two properties linked to the Nigerian government in Liverpool, United Kingdom, in June 2024, after Nigeria failed to settle an arbitration judgment from 2021, according to information obtained by The Gazette.
The properties, located at 15 Aigburth Hall Road and Beech Lodge, 49 Calderstones Road in Liverpool, were seized following a December 2021 British court order. The order authorized Zhongshang executives to confiscate Nigerian assets in the UK to recover the $70 million, which remains unpaid as of August 20, 2024, with two per cent monthly interest accruing.
Zhongshang was awarded $55,675,000, plus $9,400,000 in interest and £2,864,445 in costs as of the arbitration verdict on March 26, 2021, court documents revealed. The dispute originated between Zhongshang and Ogun State, with the company claiming that the state violated a 2001 trade treaty between Nigeria and China by rescinding its rights to a free trade zone in 2016.
The company filed a case against Nigeria before an arbitration panel in the UK in 2018, alleging that Nigeria allowed its federal agencies, including the police, immigration, and export processing authority, to be used by Ogun State without due process. Court records show that two Zhongshang executives were expelled from Nigeria between mid and late 2016, with one reportedly detained and tortured by the police.
This case has added to Nigeria’s legal challenges, following the country’s recent narrow escape from a similar arbitration ruling that awarded over $11 billion to a consortium known as P&ID. That ruling was later overturned when it was discovered that P&ID’s owners were involved in bribery and corruption.
However, the Zhongshang case appears to be different, with several European courts already issuing enforcement orders in the UK, Belgium, France, and other countries where Nigerian-owned assets, including jets, are being pursued. A U.S. appellate panel recently declined to grant Nigeria sovereign immunity in Zhongshang’s recovery efforts.
A consultant working with Zhongshang revealed that the company is preparing to sell the two Liverpool properties, including on eBay, where the combined asking price is expected to be around $2.2 million.
“They estimate the value of both properties to be approximately $2.2 million, and they have already made plans to sell them to interested buyers,” the consultant said under anonymity. “Websites like eBay might attract buyers more quickly than other methods.”
Although Nigeria owned the properties, they were seized because they were not classified as diplomatic or consular assets. Sources informed The Gazette that those currently occupying the properties had no connection to the Nigerian mission in the UK. It is unclear when Nigeria acquired the assets, but a senior judge indicated that officials had frequently rented out the properties to guests.
In her ruling on June 14, 2024, permitting Zhongshang to seize the buildings, Master Lisa Sullivan of the UK High Court, King’s Bench Division, stated: “The properties are currently leased to residential tenants with no connection to Nigeria or its mission. These are commercial purposes under s13(4) of the SIA, and thus enforcement against the properties is not barred by state immunity.”
The source emphasized that the sale would not be conducted in secret, as the Nigerian public deserves to know the sale prices of all recovered assets until the full amount has been recouped.
“Zhongshang has promised transparency in the sale process due to the high level of public interest among Nigerians,” the consultant added.
