A Chinese investment group, seeking to claim up to $70 million in arbitration awards from Nigeria, has decided to list two residential properties seized from the country for sale on eBay.
This information was confirmed to Peoples Gazette by sources familiar with the matter.
According to LEADERSHIP, Zhongshang Fucheng Industrial Investment Ltd acquired the two properties, linked to the Nigerian government, in Liverpool, UK, in June 2024.
This action follows Nigeria’s failure to settle an arbitration judgment issued in 2021.
The properties, located at 15 Aigburth Hall Road and Beech Lodge, 49 Calderstones Road, Liverpool, were seized after a December 2021 British court order allowed Zhongshang to claim Nigerian assets in the UK to recover the $70 million debt, which, as of August 20, 2024, is accruing interest at a rate of two percent per month.
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Court documents reveal that Zhongshang was awarded $55,675,000 in damages, plus $9,400,000 in interest and £2,864,445 in costs as of the March 26, 2021 arbitration verdict.
The dispute originated between Zhongshang and Ogun State, with the firm alleging that Ogun State violated a 2001 trade treaty between Nigeria and China by rescinding its rights to a free trade zone in 2016. Zhongshang took Nigeria to arbitration in the UK in 2018, claiming that federal authorities were improperly used by Ogun State.
Documents also indicate that two Zhongshang executives were expelled from Nigeria between mid and late 2016 after one was allegedly detained and tortured by the police.
This case has complicated Nigeria’s legal landscape, coming shortly after the country narrowly avoided a similar arbitration ruling that would have awarded over $11 billion to a consortium called P&ID. That verdict was later overturned upon revelations of bribery and corruption by P&ID’s owners.
However, the Zhongshang case appears more challenging, with European courts already enforcing orders in the UK, Belgium, France, and other countries, targeting Nigerian-owned jets and other assets. Recently, an appellate panel denied Nigeria sovereign immunity protection against Zhongshang’s recovery efforts in the United States.
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A consultant associated with Zhongshang disclosed that the company is preparing to list the two Liverpool properties for sale on eBay, with an asking price of up to $2.2 million for both.
“They said the value of both properties should be around $2.2 million, so they already put together a plan to sell them to willing buyers,” the consultant said under anonymity to discuss client deliberations. “Some websites like eBay might bring buyers faster than other methods.”
Although the properties belong to Nigeria, they were seized because they were not classified as Nigerian diplomatic or consular assets.
It was learned that the individuals currently residing in the properties have no connection to the Nigerian mission in the UK.
The exact date when Nigeria acquired the assets remains unclear, but a senior judge noted that Nigerian officials had frequently rented out both properties to guests.
In her June 14, 2024, court ruling which allowed Zhongshang to seize the buildings from Nigeria, Master Lisa Sullivan of the UK High Court, King’s Bench Division, said, “The properties are currently used for the purpose of leases to residential tenants unconnected with Nigeria and its mission. Those are commercial purposes for the purpose of s13(4) of the SIA and therefore the enforcement against the properties is not barred by state immunity.”
The source indicated that the sale would be conducted transparently, with Nigerian citizens being informed of the precise value of all recovered assets until the full amount has been reclaimed.
“Zhongshang promised to be transparent with the sale because of the keen public interest of Nigerians in the matter,” the consultant added.
