A Chinese investment group, Zhongshang Fucheng Industrial Investment Ltd, has finalized its decision to list two residential properties confiscated from Nigeria for sale on the global online marketplace, eBay. This move comes as the group seeks to claim up to $70 million in arbitration awards from the Nigerian government. The information was shared with Peoples Gazette by individuals familiar with the situation.
The properties in question are located at 15, Aigburth Hall Road, and Beech Lodge, 49, Calderstones Road, Liverpool. Zhongshang took possession of these buildings in June 2024, following Nigeria’s failure to settle an arbitration judgment handed down in 2021. The seizure of the properties was authorized by a December 2021 British Court order, which granted Zhongshang executives the authority to seize Nigerian assets in the UK to recover the outstanding payment. As of August 20, 2024, the amount owed, including two percent monthly interest, remains unpaid.
According to court documents, Zhongshang was awarded $55,675,000 plus $9,400,000 in interest and costs of £2,864,445 as of the arbitration verdict on March 26, 2021. The dispute originated from a conflict between Zhongshang and Ogun State, Nigeria. The firm alleged that Ogun State violated a 2001 trade treaty between Nigeria and China when it rescinded Zhongshang’s rights to a free trade zone in 2016. Zhongshang further claimed that Nigerian federal organs, including the police and immigration, were improperly deployed by Ogun State without due process.
READ ALSO: French Court Seizes Three Nigerian Jets Over Dispute with Chinese Firm
The arbitration case saw an escalation after two Zhongshang executives were expelled from Nigeria between mid and late 2016, one of whom was allegedly detained and tortured by the police. This case follows Nigeria’s recent narrow escape from a similar arbitration decision that awarded over $11 billion to the P&ID consortium, which was later annulled due to bribery and corruption by P&ID’s owners.
Unlike the P&ID case, the Zhongshang dispute has progressed with several European courts granting enforcement orders in the UK, Belgium, France, and other countries, where Nigerian-owned jets and assets are being tracked. An appellate panel recently denied Nigeria sovereign immunity protection over Zhongshang’s recovery efforts in the United States.
A consultant working with Zhongshang revealed that the company has planned to list the two Liverpool properties on eBay, with a combined asking price of 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 stated anonymously. “Some websites like eBay might bring buyers faster than other methods.”
Although the properties were Nigerian-owned, they were seized because they were not listed as diplomatic or consular assets. Those occupying the properties had no ties to the Nigerian mission in the UK. A senior judge noted that Nigerian officials had frequently rented out both properties.
In her June 14, 2024, ruling, Master Lisa Sullivan of the UK High Court, King’s Bench Division, confirmed the seizure, stating, “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 sale of the properties will be conducted transparently, with Zhongshang promising to inform Nigerian citizens about the exact value of the assets until the total sum is recovered. “Zhongshang promised to be transparent with the sale because of the keen public interest of Nigerians in the matter,” the consultant added.
