Zhongshang Fucheng Industrial Investment Ltd is moving to sell two residential properties seized from Nigeria on eBay in an effort to recover up to $70 million in arbitration awards.
The investment group took possession of the properties in Liverpool, United Kingdom, in June 2024, after Nigeria failed to settle a 2021 arbitration ruling.
The properties were targeted following a December 2021 British court order that permitted Zhongshang to seize Nigerian assets in the UK to recoup the $70 million debt, which remains unpaid as of August 2024, with interest accumulating at two per cent.
Ogun State revoked Zhongshang’s rights to a free trade zone in 2016, a move the company argued violated the treaty.
Zhongshang in 2018 initiated arbitration proceedings against Nigeria in the UK, accusing Nigerian federal agencies, including the police and immigration authorities, of acting on behalf of Ogun State without due process. The firm also alleged that two of its executives were expelled from Nigeria in 2016, with one reportedly detained and tortured by local police.
The Zhongshang case presents a tougher challenge, with courts across Europe, including the UK, Belgium, and France, granting enforcement orders that allow the seizure of Nigerian assets. Efforts to protect Nigeria through sovereign immunity have so far failed, even in the United States.
People’s gazette reported that a consultant working with Zhongshang said the company has been working to put the two Liverpool houses up for sale, including on eBay, where the source said up to $2.2 million would be asked for both.
“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 said under anonymity to discuss client deliberations. “Some websites like eBay might bring buyers faster than other methods.”
Even though the properties belonged to Nigeria, they were seized because they weren’t listed as Nigerian diplomatic or consular assets. The Gazette learnt that those currently occupying the properties had no ties to the Nigerian mission in the UK. It was unclear when Nigeria bought the assets, but a senior judge said its officials had regularly rented out both places to guests.
“Zhongshang promised to be transparent with the sale because of the keen public interest of Nigerians in the matter,” the consultant added.
