Chinese Firm Sells Off Nigeria’s UK Properties To Cover Debts

The Chinese investment group, is moving to sell two residential properties seized from Nigeria. On a global marketplace eBay, in a efforts to recover up to $70million in arbitration awards.

Zhongshang Fucheng Industrial Investment Limited, took possession of the two properties in Liverpool, United Kingdom.

In June 2024, after Nigeria failed to settle a 2021 arbitration ruling.

The properties which are located at 15, Aigburth Hall Road, and Beech Lodge, 49, Calderstones Road. This are the areas targeted, following a December 2021 British court order that permitted Zhongshang to seize Nigerian assets in the UK.

This is to recoup the $70 million debt, which remains unpaid as of August 2024, with interest accumulating at two per cent per month.

Court records indicate that, Zhongshang was awarded $55.7million, plus $9.4million in interest, and £2.86million in legal costs. This is part of dispute stemming from 2001 trade agreement between Nigeria and China.

The conflict arose when Ogun State revoked Zhongshang’s rights to free trade zone in 2016. This was a move that the company argued that, it violated treaty.

in 2018, Zhongshang initiated arbitration proceedings against Nigeria, in the UK.

It accused Nigerian federal agencies, which includes, the police and immigration agencies. Of acting on behalf of ogun state without due process.

Because the Firm alleged that two of its executives were expelled from Nigeria in 2016. So, one was reportedly detained and tortured by local police.

So this latest development added to Nigeria’s legal challenges abroad. Because this is coming months after the country narrowly avoided a disastrous $11billion arbitration ruling in favor of Process & Industrial Developments Limited (P&ID). However the ruling of was overturned after evidence of bribery and corruption surface.

It’s unclear when the Nigerian Government acquired the properties.

According to the court fillings, they have been rented out.