Nigeria is grappling with the threat of asset seizures as Zhongshan Fucheng Industrial Investment Co. Limited, a Chinese firm, seeks to enforce a £20 million judgment awarded in its favor against Nigeria by a UK appeal court.
The company, which previously secured a French court ruling to seize two Nigerian presidential planes, is now targeting two Nigerian government properties in Liverpool.
This latest development underscores ongoing tensions related to a dispute between Ogun State and Zhongshan, which also involves an arbitration tribunal’s $74.5 million award to the Chinese firm in 2021.
Attorney-General Lateef Fagbemi has accused Zhongshan of employing coercive tactics to claim Nigerian assets abroad, while former Ogun State Governor Senator Ibikunle Amosun has denounced the firm’s actions as unlawful, comparing them to the P&ID case where Nigeria ultimately prevailed.
The dispute originated from allegations of misrepresentation and non-disclosure by Zhongshan regarding its joint venture with Ogun State.
The arbitration tribunal found insufficient evidence to support Nigeria’s claims of misrepresentation and ruled that the 2013 joint venture agreement was based on Ogun State’s own assessment of Zhongshan’s capabilities.
The US appellate court has supported the arbitration award, ruling that Nigeria’s sovereign immunity was waived under the Foreign Sovereign Immunities Act’s arbitration exception.
The court affirmed that the arbitration agreement and award were valid under the New York Convention, confirming that Nigeria’s legal obligations to Zhongshan were rooted in a commercial relationship.
