By Jemimah Wellington, JKNewsMedia Reporter
A CHINESE investment firm, Zhongshang Fucheng, has taken aggressive steps to recover $81 million owed by Nigeria following a 2021 arbitration ruling.
The dispute stems from a failed trade agreement between the Ogun State government and the company.
In a bid to enforce the arbitration award, the firm has begun seizing Nigerian assets across Europe and North America.
Recently, Zhongshang Fucheng listed two properties in Liverpool, United Kingdom, for sale on eBay.
These properties, valued at $2.2 million, were seized after the Nigerian government failed to comply with the arbitration decision.
The Chinese firm has shown no signs of backing down, despite ongoing discussions with Nigerian officials.
They have already taken control of two residential buildings in the UK and have plans to auction them to recover part of the debt.
The firm also took possession of three Nigerian presidential jets last Wednesday.
Although one jet was temporarily released to transport President Bola Tinubu to an event in France, Zhongshang Fucheng continues to target Nigerian assets globally.
The situation mirrors the high-profile P&ID case, where Nigeria narrowly avoided a $11 billion penalty.
However, the outcome of this case may not be as favorable for Nigeria.
The arbitration ruling in 2021 awarded Zhongshang Fucheng $55.7 million plus interest and legal costs, bringing the total to $81 million.
The dispute began in 2016 when Ogun State allegedly violated a trade treaty by revoking the firm’s rights to a free trade zone.
The company accused Nigerian authorities of using federal agencies, including the police and immigration, to forcefully remove its executives from the country.
Zhongshang Fucheng filed for arbitration in 2018, claiming that the Nigerian government’s actions violated international trade agreements.
The arbitration tribunal sided with the Chinese firm, but Nigeria has so far resisted making the payment.
Despite this, Zhongshang Fucheng continues to enforce the award, seeking to liquidate Nigerian assets in foreign jurisdictions to recover the funds.
Attorney-General of the Federation, Lateef Fagbemi, criticized the Chinese firm’s tactics, accusing them of using coercive methods to seize Nigerian assets abroad.
Former Ogun State Governor, Senator Ibikunle Amosun, also condemned the firm, comparing the situation to the P&ID case and questioning the legality of the asset seizures.
In addition to the properties listed on eBay, the Chinese firm is also eyeing other Nigerian assets in Europe and North America.
Their aggressive approach has raised concerns that Nigeria may face significant financial losses if it cannot resolve the dispute through negotiations or legal challenges.
Zhongshang Fucheng’s pursuit of Nigerian assets underscores the risks countries face when they fail to honor international arbitration awards.
The Nigerian government’s efforts to contest the ruling in various courts have so far been unsuccessful.
If the situation remains unresolved, it could lead to further asset seizures and financial penalties.
