Contract Dispute: Chinese Firm Seizes Another Nigerian Property

A Chinese investment group, Zhongshang Fucheng Industrial Investment Ltd, has taken a significant step in its legal battle against Nigeria, seizing two properties in Liverpool, UK, to recover a $70 million arbitration award.

The dispute stems from a 2001 trade treaty between Nigeria and China. Zhongshang claims that Ogun State Government violated its rights to a free trade zone when it rescinded the agreement in 2016.

The company has accused Nigeria of allowing its federal organs to be deployed by the state without due process.

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In 2018, Zhongshang dragged Nigeria before an arbitration panel in the UK, alleging that two of its executives were expelled from Nigeria and that one was detained and tortured by the police.

To recoup its losses, the Chinese firm has now placed the two Liverpool guest houses, owned by Nigeria, up for sale on eBay.

The properties, located at 15 Aigburth Hall Road and Beech Lodge, 49 Calderatones Road, are listed for $2.2 million.

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A consultant working with Zhongshang confirmed the sale, stating that the firm had been actively seeking buyers for the properties.

“They believe the value of both properties is around $2.2 million,” the consultant said anonymously. “Online platforms like eBay can attract buyers quickly.”

While the properties belong to Nigeria, they were seized because they were not listed as diplomatic or consular assets. It’s unclear when Nigeria acquired the properties, but a senior judge revealed that they had been regularly rented out to guests.