A Chinese investment group, Zhongshang Fucheng Industrial Investment Ltd, plans to auction two residential properties seized from Nigeria on eBay to recover up to $70 million from an arbitration award. The properties, located at 15 Aigburth Hall Road and Beech Lodge, 49 Calderstones Road in Liverpool, were seized in June 2024 after Nigeria failed to settle a 2021 arbitration ruling.
The seizure followed a December 2021 British court order that allowed Zhongshang to claim Nigerian assets in the UK to recoup the debt, which remains unpaid as of August 2024, with accumulating interest of two percent per month.
Court records show that Zhongshang was awarded $55.7 million, plus $9.4 million in interest and £2.86 million in legal costs, related to a dispute over a 2001 trade agreement between Nigeria and China. The conflict began when Ogun State revoked Zhongshang’s rights to a free trade zone in 2016, which the company claimed violated the treaty.
In 2018, Zhongshang initiated arbitration against Nigeria in the UK, accusing Nigerian federal agencies of acting on behalf of Ogun State without due process. The firm also alleged that two of its executives were expelled from Nigeria in 2016, with one reportedly detained and tortured by local police.
This development adds to Nigeria’s international legal troubles, coming shortly after the country narrowly avoided an $11 billion arbitration ruling in favor of Process & Industrial Developments Ltd (P&ID). That case was overturned after evidence of bribery and corruption emerged. The Zhongshang case, however, presents a more challenging situation, with enforcement orders granted by courts across Europe, including the UK, Belgium, and France, allowing for the seizure of Nigerian assets. Efforts to protect Nigeria through sovereign immunity have so far been unsuccessful, including in the United States.
A consultant for Zhongshang revealed that the firm is preparing to list the seized Liverpool properties on platforms like eBay, with an estimated value of $2.2 million.
“The decision to use online platforms like eBay aims to attract buyers quickly,” the consultant told Peoples Gazette.
The properties, not classified as diplomatic or consular assets, are vulnerable to seizure. It is unclear when Nigeria acquired them, but court filings indicate they were rented out to private tenants not connected to Nigeria’s diplomatic mission in the UK.
In a June 2024 ruling, Master Lisa Sullivan of the UK High Court’s King’s Bench Division confirmed Zhongshang’s claim, stating the properties were eligible for seizure under commercial purposes as per section 13(4) of the State Immunity Act.
Zhongshang has pledged to maintain transparency throughout the sales process and to keep the Nigerian public informed about the recovery.
