Court grants Chinese firm right to seize $25m Nigerian asset abroad

A British Islands court has authorized Zhongshan Fucheng Industrial Investment to seize $25 million worth of Nigerian assets, marking another blow in the protracted dispute over the failed Ogun trade zone project.

Judge Paul Webster ruled that “Nigeria is not insulated from executing an arbitral award,” rejecting the country’s immunity defense.

The ruling follows similar decisions in Belgium, France, Canada, and the U.S., where courts have consistently held Nigeria liable. In response, Daniel Bwala, Special Adviser to the President on Policy Communication, assured that the Nigerian government is taking action. “The judgment cannot be immediately enforced. Nigeria will vacate it,” Bwala stated, emphasizing the government’s commitment to addressing the crisis.

**Mounting International Losses**

Zhongshan has already seized Nigerian assets globally, including two properties in the United States. A U.S. Court of Appeal recently affirmed the arbitration award, with the majority ruling that “the arbitration award can and must be enforced.”

The Presidency, however, remains optimistic. “We are studying the judgment and will respond appropriately,” Bwala said, assuring Nigerians of a firm legal strategy to prevent further escalation.

These developments come amid increasing pressure on Nigeria to honor international obligations. Judge Webster’s decision reaffirmed the treaty terms, which obligate contracting parties to enforce awards, stating, “The responsibility lies with Nigeria to uphold its international commitments.”

The loss highlights Nigeria’s ongoing struggles in foreign courts, with assets worth millions already confiscated and a $70 million arbitration award upheld by the UK Court of Appeal in July 2023.