The ongoing contract dispute between Nigeria and the Chinese investment group Zhongshang Fucheng Industrial Investment Ltd has reportedly escalated, with allegations surfacing that the Chinese firm has placed two of Nigeria’s guest houses in Liverpool, United Kingdom, up for sale.
The dispute stems from a 2001 trade treaty between Nigeria and China, which the Chinese firm claims was violated when the Ogun State Government rescinded its rights to a free trade zone in 2016.
In response, Zhongshang filed a case against Nigeria before an arbitration panel in the UK in 2018, accusing the country of allowing federal agencies, such as the police, immigration, and export processing authorities, to be deployed by Ogun State without following due process.
Court documents reveal that two executives from Zhongshang were expelled from Nigeria between mid and late 2016, with one allegedly detained and tortured by Nigerian police.
In a bid to recover its $70 million arbitration award, Zhongshang has reportedly taken control of two Nigerian guest houses located at 15 Aigburth Hall Road and Beech Lodge, 49 Calderstones Road, Liverpool. The properties have been listed for sale on eBay for $2.2 million.
A consultant associated with Zhongshang, who requested anonymity, confirmed the firm’s intent to sell the properties, stating, “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. Some websites like eBay might bring buyers faster than other methods.”
Despite the properties being owned by Nigeria, they were seized due to not being listed as diplomatic or consular assets. Sources indicate that the current occupants of the properties have no connection to the Nigerian mission in the UK.
The timeline of Nigeria’s acquisition of these assets remains unclear, but a senior judge noted that Nigerian officials had regularly rented out the properties to guests.
This development marks a significant turn in the ongoing legal and diplomatic tussle between the two parties, raising concerns over the implications for Nigeria’s assets abroad.
