A Chinese investment group, Zhongshang Fucheng Industrial Investment Ltd., has finalised plans to sell two residential properties it seized from the Nigerian government on the global online marketplace eBay.
News About Nigeria reports that this is to recover up to $70 million in arbitration awards from Nigeria.
The latest development comes shortly after Zhongshang secured a French court judgement authorising the seizure of three Nigerian presidential planes.
In June 2024, the company seized two properties linked to the Nigerian government in Liverpool, United Kingdom, after Nigeria failed to comply with an arbitration ruling issued in 2021.
The properties in question, located at 15 Aigburth Hall Road and Beech Lodge, 49 Calderstones Road in Liverpool, were seized following a December 2021 British court order.
This ruling allowed Zhongshang to confiscate Nigerian assets in the UK to recover the $70 million judgement, which remains unpaid as of August 20, 2024, with a two percent monthly interest accruing on the outstanding amount.
Zhongshang was awarded $55,675,000, plus interest of $9,400,000 and costs of £2,864,445, as part of the arbitration verdict on March 26, 2021, according to court documents.
The dispute originated from a 2001 trade treaty between Nigeria and China, which Zhongshang claimed was violated when Ogun State rescinded its rights to a free trade zone in 2016.
The company brought Nigeria before a UK arbitration panel in 2018, accusing the country of using federal agencies, including the police, immigration, and the export processing authority, at the behest of Ogun State without following due process.
The situation worsened when two Zhongshang executives were expelled from Nigeria in 2016, with one allegedly detained and tortured by the police.
European courts have since issued enforcement orders in the UK, Belgium, France, and other countries, allowing Nigerian-owned jets and other assets to be tracked and seized.
Additionally, a U.S. appellate panel recently declined to extend sovereign immunity protection to Nigeria, further enabling Zhongshang’s efforts to recover the $70 million owed.
A consultant working with Zhongshang revealed that the company is preparing to list the two Liverpool houses for sale, including on eBay, where the properties are expected to fetch up to $2.2 million.
The company is also reportedly planning to claim Nigeria’s £20 million P&ID award in the UK.
