Zhongshang Fucheng Industrial Investment Ltd, a Chinese investment group, has intensified efforts to seize Nigerian assets in Europe and North America to recover a $70 million arbitration award. The group plans to sell two residential properties confiscated from Nigeria on eBay to recover the debt.
The properties, located in Liverpool, UK, were seized in June 2024 after Nigeria failed to settle a 2021 arbitration judgment. The British court order allowed Zhongshang to seize Nigerian assets in the UK to recover the debt, which has accrued interest since 2021.
Zhongshang was awarded $55,675,000 plus interest and costs in the arbitration verdict on March 26, 2021. The dispute stemmed from a trade treaty violation between Nigeria and China, which led to the revocation of Zhongshang’s rights to a free trade zone in Ogun State.
The case has sparked confusion in Nigeria, which recently escaped a similar arbitration decision awarding $11 billion to P&ID. However, the Zhongshang case appears different, with European courts granting enforcement orders in several countries.
A consultant working with Zhongshang said the company plans to sell the properties on eBay for up to $2.2 million. “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.
Master Lisa Sullivan of the UK High Court, King’s Bench Division, ruled that the properties could be seized since they were used for commercial purposes and not listed as Nigerian diplomatic or consular assets. “The properties are currently used for the purpose of leases to residential tenants unconnected with Nigeria and its mission. Those are commercial purposes…and therefore the enforcement against the properties is not barred by state immunity.”
Zhongshang has promised to be transparent with the sale, with the consultant adding, “Zhongshang promised to be transparent with the sale because of the keen public interest of Nigerians in the matter.”
