See why Chinese company is planning to take over Nigerian Govt properties

• Two Nigerian properties in the UK face potential takeover by a Chinese company following a legal battle
• The two properties are granted the orders in respect of two Liverpool properties estimated to be worth a combined £1.7 million
• The underlying arbitration was in relation to a joint venture with Nigeria’s Ogun State to establish a free trade zone near Lagos in 2013

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

A Chinese investor, Zhongshan Fucheng Industrial Investment, is on the verge of taking over two Nigerian government residential properties in the United Kingdom following a court order.

The two properties, located in prime areas of Liverpool, are estimated to be worth a combined £1.7 million.

Nigerian Vice President Kashim Shettima with Chinese President Xi Jinping Photo: Presidency of Nigeria/Anadolu
Source: Getty Images

Why Chinese investor is eyeing government property

Leadership reports that the Chinese firm dragged the Nigerian government to court over a joint venture between Zhongshan and Ogun State to establish a free trade zone near Lagos in 2013.

A Zhongshan subsidiary held a 60% stake in the project, but Ogun terminated its participation three years later.

In 2021, a London-seated UNCITRAL tribunal chaired by Lord Neuberger, including Matthew Gearing KC and Rotimi Oguneso SAN, said Nigeria was guilty of expropriation and other breaches of the China-Nigeria bilateral investment treaty and ordered the country to to pay US$55.6 million plus interest and costs.

The Nigerian government is reported not to have obeyed the court order,

Zhongshan then dragged Nigeria again to court and on June 14, 2024, Master Sullivan of the Commercial Court in London granted the orders for the two properties Liverpool properties to be handed over to the company.

Nigerian govt fights back

Timi Balogun of Squire Patton Boggs, counsel to Nigeria expressed disagreement with the decision citing concerns over state immunity and the management of foreign state assets.

However, the judge dismissed the argument noting that the order was premised on the fact that the properties have been converted to commercial use outside Nigeria’s diplomatic or consular activities in the UK, stressing that enforcement of the order should prevail.

Nigerian counsels plan to appeal the judgement.

Zhongshan also plans to drag the case enforcement in the US, Quebec, Belgium, and the British Virgin Islands and demand properties.

Tinubu’s new borrowings take Nigeria’s public debt surging

Legit.ng reported that DMO data has revealed that Nigeria’s public debt has hit about N97.34 trillion as of Q4 2023.

DMO stated this in a statement on Friday, March 22, 2024.

The DMO said Nigeria’s public debt, as of December 31, 2023, stood at 97.34 trillion or $108.22 billion.

Source: Legit.ng