A CHINESE INVESTOR TO SEIZE NIGERIAN GOVERNMENT’S PROPERTY IN UK

Following a decision awarding the investor the ability to execute a $70 million investment treaty award against Nigeria, two Nigerian properties located in the United Kingdom are about to be taken over by a Chinese investor.

Final charge orders over two UK residential properties owned by the Nigerian government were issued to the investor, Zhongshan Fucheng Industrial Investment, following the attachment of a £20 million debt related to the well-known P&ID case.

On June 14, Master Sullivan of the Commercial Court in London approved the orders for two Liverpool homes estimated to be worth a combined £1.7 million, giving the Chinese firm this order.

The judge emphasised that enforcement of the order should take precedence, citing as its foundation the fact that the properties have been transformed to commercial use outside of Nigeria’s diplomatic or consular
activity in the UK.

In the well-known case, Nigeria was represented by Squire Patton Boggs and an attorney from Atkin Chambers, while Zhongshan was represented in court by Withers and barristers from 3VB. According to sources, the 2013 joint venture between Nigeria’s Ogun State and Lagos to create a free trade zone was the subject of the underlying arbitration.

Three years later, Ogun ended its involvement in the project, leaving a Zhongshan
subsidiary with a 60%
ownership.

Nigeria was ordered to pay US$55.6 million plus interest and costs in 2021 by a UNCITRAL tribunal seated in London, presided over by Lord Neuberger.

The tribunal also included Matthew Gearing KC and Rotimi Oguneso SAN.

The Nigerian government was found guilty of expropriation
and other breaches of the
bilateral investment treaty
between China and Nigeria.