In a significant legal development, a Chinese investor has seized two Nigerian government properties located in the United Kingdom. This action follows an order granting the investor the right to enforce a $70 million investment treaty award against Nigeria.
The investor, Zhongshan Fucheng Industrial Investment, was granted final charging orders over two UK residential properties owned by the Nigerian government. This came after the company also attached a £20 million debt relating to the high-profile P&ID case.
The Chinese firm secured this order on June 14, when Master Sullivan in the Commercial Court in London granted the orders in respect of two Liverpool properties estimated to be worth a combined £1.7 million. The judge stated that the order was based on the fact that the properties have been converted to commercial use outside Nigeria's diplomatic or consular activities in the UK, emphasizing that enforcement of the order should prevail.
The underlying arbitration was related to a joint venture between Zhongshan and Nigeria's Ogun State to establish a free trade zone near Lagos in 2013. In 2021, a London-seated UNCITRAL tribunal found Nigeria guilty of expropriation and other breaches of the China-Nigeria bilateral investment treaty, ordering the country to pay $55.6 million plus interest and costs.
Despite Nigeria's efforts to challenge the award on jurisdictional grounds, the company has successfully enforced the award in various jurisdictions, including the United States, Quebec, Belgium, and the British Virgin Islands.
The legal battle has been a complex and high-profile case, with Zhongshan represented by Withers and barristers at 3VB, while Nigeria was represented by Squire Patton Boggs and a barrister at Atkin Chambers.
Nigeria's Ministry of Foreign Affairs is yet to comment on the latest developments in this ongoing dispute.