A UK court has granted Zhongshan Fucheng Industrial Investment, a Chinese company, the right to seize two residential properties in Liverpool, United Kingdom, owned by the Nigerian government.
This decision follows Nigeria’s failure to meet obligations under an arbitration award related to a $70 million investment treaty dispute.
The properties, located at 15 Aigburth Hall Road and Beech Lodge, 49 Calderstones Road in Liverpool, are valued between £1.3 and £1.7 million, according to documents obtained by Premium Times.
On June 14, 2024, Master Sullivan of the High Court of Justice, King’s Bench Division, Commercial Court in London, issued final charging orders in favor of Zhongshan.
Nigeria contested the orders, arguing that they did not comply with legal requirements and that the properties were protected by state immunity.
The Nigerian government claimed the properties were not used for commercial purposes, as certified by the acting head of Nigeria’s High Commission in London.
However, the court rejected Nigeria’s objections, stating, “Neither property is recorded as diplomatic or consular premises or premises of the mission or residential property notified as a private residence of a member of the mission.”
“None of those listed as resident there on publicly available databases have any connection with the mission,” the judgment further noted.
The dispute dates back to 2016, when Zhongfu, a subsidiary of Zhongshan, alleged that the Ogun State Government was attempting to terminate its appointment to manage a free trade zone in Ogun. Zhongfu initiated arbitration under the China-Nigeria bilateral investment treaty, resulting in a 2021 London tribunal ruling that awarded Zhongshan $55.6 million in compensation, plus interest and costs, for Nigeria’s breaches.
Despite Nigeria’s efforts to appeal, the court of appeal in London upheld the enforcement of the arbitration award, citing Nigeria’s failure to comply with deadlines and properly assert state immunity.
The court concluded, “Nigeria failed to make any application within the time specified, and the Judge was amply justified in refusing relief.”
Last year, Zhongshan obtained interim charging orders on the Liverpool properties, which Nigeria opposed.
The Nigerian government argued that Zhongshan had not provided full disclosure at the interim stage and that the properties were used for non-commercial purposes, making them immune from seizure under the State Immunity Act.
However, the court ruled that the properties were leased to residential tenants unconnected to Nigeria’s mission, qualifying them as commercial under the State Immunity Act.
“There is no good reason why I should not exercise my discretion to make the charging orders final, and I do so,” Master Sullivan declared.
