According to sources familiar with the matter, a Chinese investment group striving to recover up to $70 million in arbitration awards from Nigeria has finalized plans to list two residential properties, seized from the country, for sale on the international online marketplace eBay.
In June 2024, Zhongshang Fucheng Industrial Investment Ltd acquired two properties associated with the Nigerian government in Liverpool, United Kingdom, following Nigeria’s failure to comply with an arbitration ruling issued in 2021, as reported by The Gazette.
The properties located at 15 Aigburth Hall Road and Beech Lodge, 49 Calderstones Road in Liverpool, came under scrutiny following a British court order in December 2021. This order granted Zhongshang executives the authority to seize Nigerian assets in the UK to recover the $70 million payment, which remained unpaid as of August 20, 2024, accruing interest at a rate of two percent per month.
According to court documents, as of the arbitration decision on March 26, 2021, Zhongshang was granted $55,675,000 along with $9,400,000 in interest and £2,864,445 in costs. The case originated from a disagreement between Zhongshang and Ogun State. The company asserted that the state breached a 2001 trade agreement between Nigeria and China when it withdrew its rights to a free trade zone in 2016.
In 2018, the company brought a case against Nigeria before an arbitration panel in the UK, accusing Nigeria of permitting Ogun State to utilize federal entities such as the police, immigration, and export processing authority without following proper procedures. Court documents indicate that two Zhongshang executives were deported from Nigeria between mid to late 2016, following allegations that one executive had been detained and tortured by the police.
The situation has once more plunged Nigeria into turmoil, just months after the nation narrowly avoided a comparable arbitration ruling that granted over $11 billion to the consortium known as P&ID. The arbitration decision was overturned following the revelation that the owners of P&ID were implicated in bribery and corruption.
The case of Zhongshang stands apart, as several European courts have already issued enforcement orders in the UK, Belgium, France, and other countries, where authorities are locating jets and other assets owned by Nigerians. A recent decision by an appellate panel denied Nigeria’s request for sovereign immunity in response to Zhongshang’s recovery actions in the United States.
A consultant associated with Zhongshang reported that the company is preparing to list the two properties in Liverpool for sale, including on eBay, with an asking price of up to $2.2 million for both.
“The properties are valued at approximately $2.2 million, and a strategy has been formulated to sell them to interested buyers,” the consultant stated anonymously, discussing client considerations. “Certain platforms, such as eBay, can attract buyers more swiftly than alternative methods.”
Although the properties were owned by Nigeria, they were confiscated due to their omission from the list of Nigerian diplomatic or consular assets. The Gazette has discovered that the current occupants of the properties have no affiliation with the Nigerian mission in the UK. The precise timing of Nigeria’s acquisition of the assets remains uncertain; however, a senior judge noted that officials have frequently leased both venues to guests.
In her ruling dated June 14, 2024, Master Lisa Sullivan of the UK High Court, King’s Bench Division, granted Zhongshang the authority to seize the buildings from Nigeria. She stated: “These properties are presently leased to residential tenants who are not associated with Nigeria and its mission. Such use is deemed commercial under section 13(4) of the SIA, and thus enforcement actions against the properties are not restricted by state immunity.”
A source indicated that the sale would not be conducted in secrecy because it is essential for the Nigerian public to be informed about the selling price of all recovered assets until the entirety of the amount is recouped.
“The consultant noted that Zhongshang committed to ensuring transparency in the sale due to the strong public interest among Nigerians.”
