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Details of the Amount Chinese Firm want to Sell Nigerian Properties out in Liverpool

Published by admin on August 21st, 2024.

Details of the Amount Chinese Firm want to Sell Nigerian Properties out in Liverpool

A Chinese investment firm has acquired Nigerian guest houses in Liverpool and plans to sell them on eBay for $2.2 million.

Zhongshang Fucheng Industrial Investment Ltd is taking aggressive action to recover up to $70 million awarded in a 2021 arbitration ruling by seizing Nigerian assets in Europe and North America.

According to sources familiar with the situation, the firm is set to list two properties in Liverpool, UK, linked to the Nigerian government on the global marketplace eBay. The properties, located at 15 Aigburth Hall Road and Beech Lodge, 49 Calderstones Road, were taken into possession in June 2024, following Nigeria’s failure to settle the arbitration judgment issued in 2021.

The seizure came after a December 2021 court ruling in the UK empowered Zhongshang to claim Nigerian assets to enforce the $70 million judgment, which continues to accrue 2% interest monthly as of August 20, 2024.

The arbitration award included $55,675,000 in damages, $9,400,000 in interest, and £2,864,445 in costs, following a dispute with Ogun State over a 2001 trade treaty. Zhongshang alleged that Ogun State’s actions violated the treaty and led to improper treatment of its representatives by Nigerian authorities.

This case adds to Nigeria’s legal woes, coming on the heels of a narrow escape from a similar arbitration decision involving over $11 billion awarded to P&ID, which was later dismissed due to bribery allegations. In contrast, Zhongshang’s case has seen successful enforcement actions across Europe and the US, with Nigerian assets under scrutiny.

The consultant for Zhongshang indicated that the properties will be listed for around $2.2 million on eBay, as this platform might attract buyers more swiftly. Despite being Nigerian-owned, these properties were not considered diplomatic or consular assets, allowing their seizure. They were used for residential leasing and were not connected to Nigeria’s official missions.

Master Lisa Sullivan of the UK High Court ruled on June 14, 2024, that the properties could be seized for commercial purposes, as they were not protected by state immunity.

The consultant emphasized that the sale process would be transparent to keep the Nigerian public informed about the asset recovery efforts until the full amount is settled.