A Chinese company, Zhongshang Fucheng Industrial Investment Limited, is reportedly planning to list two residential properties it seized from the Nigerian government in Liverpool, United Kingdom, for sale on the global online marketplace eBay. This move is part of the group’s efforts to recover up to $70 million in arbitration awards from Nigeria.
The properties, located at 15 Aigburth Hall Road and Beech Lodge, 49 Calderstones Road in Liverpool, were confiscated by Zhongshang in June 2024. This followed a British court order from December 2021, which allowed the company to seize Nigerian assets in the United Kingdom to settle the arbitration judgment that Nigeria has yet to pay. The outstanding amount includes $55,675,000 in principal, $9,400,000 in interest, and £2,864,445 in legal costs.
The case originated from a dispute between Zhongshang and Ogun State, Nigeria, over the state’s alleged violation of a 2001 trade treaty between Nigeria and China. Zhongshang claimed that its rights to a free trade zone were rescinded in 2016 without due process, leading to the expulsion of its executives from Nigeria.
Unlike a previous case involving P&ID, where Nigeria managed to avoid paying over $11 billion after corruption was uncovered, the Zhongshang case has seen several European courts grant enforcement orders, allowing the seizure of Nigerian assets in the United Kingdom, France, Belgium and other countries. A recent ruling in the United States also denied Nigeria sovereign immunity in this matter.
A consultant working with Zhongshang revealed that the company intends to sell the two Liverpool properties for up to $2.2 million, including on eBay. Although the properties are owned by Nigeria, they were not classified as diplomatic or consular assets, which allowed Zhongshang to seize them. The current occupants of the properties reportedly have no connection to the Nigerian mission in the UK, and the properties have been regularly rented out to guests by Nigerian officials.
In her June 14, 2024, ruling, Master Lisa Sullivan of the UK High Court, King’s Bench Division, stated that the properties were being used for commercial purposes, specifically for leasing to residential tenants unconnected to Nigeria’s mission, and therefore were not protected by state immunity.
