Court Grants Chinese Firm Right to Seize Another Nigerian Asset Worth $25 Million in Another Country

• A British Islands court has granted the Chinese firm Zhongshan Fucheng the right to seize another of Nigeria’s asset
• The court gave the order, stating that Nigeria is not immune from arbitral judgment debt in favour of the company 
• The Presidency assured that the Nigerian government is studying the judgement and will respond appropriately

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

A court in the British Islands has granted Zhongshan Fucheng Industrial Investment the right to take $25 million worth of Nigeria’s assets over the botched Ogun trade zone deal.

However, in a quick response, the Presidency assured that the Nigerian government was studying the judgement and would respond appropriately.

FG responds to court judgment

Daniel Bwala, Special Adviser to the President on Policy Communication, disclosed that the judgement cannot be immediately enforced, saying Nigeria will vacate it.

Read also

Supreme Court finally gives verdict on 36 governors’ suit against FG over gas earnings

According to a BusinessDay report, Paul Webster, a British Islands High Court judge, held that Nigeria is not insulated from executing an arbitral award and subsequent judgment debt favouring the Chinese firm.

Webster held that the treaty’s terms provide contracting parties with the responsibility to commit to enforcing the award.

Countries Nigeria’s assets have been confiscated

The ruling is the latest in a string of losses Nigeria has endured in foreign countries over the past years.

The Chinese firm has seized Nigerian assets in Belgium, France, Canada, the US, and the British Islands.

The courts in these countries found Nigeria liable to settle the debt and dismissed the country’s immunity argument against Zhongshan as unfounded.

Legit.ng earlier reported that Zhongshan had south to enforce the arbitration award in the UK courts. Nigeria argued for state immunity. However, the defence was rejected.

In July 2023, the UK Court of Appeal upheld the $70 million arbitration award in favour of the Chinese firm.

Read also

Former Senator appeals for compassionate approach to fake degree holders from Benin Republic

Nigeria Loses 2 Properties in US

Legit.ng earlier reported that a United States Court of Appeal had issued a final charging order to Zhongshan Fucheng Industrial Investment Co. Ltd, a Chinese firm, to take over two federal government properties.

The verdict was delivered on Friday, August 9. In the majority judgment, the court affirmed the ruling of the US District Court for the District of Columbia, which maintained that the arbitration award could be enforced.

It was learnt that the development had worsened the federal government's move to ensure the crisis did not escalate to other European countries.

Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng

Source: Legit.ng