A court in the British Virgin Islands has ruled in favor of Zhongshan Fucheng Industrial Investment Co. Ltd, a Chinese firm, allowing it to seize £20 million ($25 million) from Nigeria’s foreign denominated assets. This decision stems from a failed Ogun trade zone deal in the early 2000s under the administration of Ibikunle Amosun, the then governor of Ogun state.
The ruling, delivered by Judge Paul Webster on November 8, 2024, declared that Nigeria is not immune to execution of an arbitral award and subsequent judgment debt in favor of Zhongshan. This decision was based on the bilateral investment treaty between China and Nigeria, which states that “both contracting parties shall commit to the enforcement of the award,” constituting “a written consent of the Nigerian state”.
In response to the judgment, the Nigerian Presidency has assured that the federal government is reviewing the decision and will respond accordingly. Daniel Bwala, Special Adviser to the President on Policy Communication, stated that the judgment cannot be enforced immediately and that Nigeria will vacate the judgment.
This ruling marks the latest in a series of losses Nigeria has suffered in foreign jurisdictions in recent years. The judgment highlights the complexities of international business deals and the importance of careful consideration of investment treaties and agreements.
