A Chinese investor, Zhongshan Fucheng Industrial Investment, has been granted the right to enforce a $70 million investment treaty award against Nigeria, potentially taking over two Nigerian properties in the United Kingdom.
Master Sullivan in the Commercial Court in London granted the final charging orders over the two Liverpool properties, estimated to be worth £1.7 million, on June 14. The judge stated that the order was granted because the properties have been converted to commercial use outside Nigeria’s diplomatic or consular activities in the UK.
Timi Balogun, counsel to Nigeria, expressed disagreement with the decision, saying: “We respectfully disagree with the Master’s decision, which we believe somewhat brushes over complex public international law issues, including with respect to state immunity and the right of a foreign state’s High Commission to own and manage portfolios of fixed assets in England and Wales. We believe that such issues need to be weighed very carefully, and we intend to appeal this decision so that these complex and important issues can be considered by the higher courts.”
The underlying arbitration was related to a joint venture between Zhongshan and Nigeria’s Ogun State to establish a free trade zone near Lagos in 2013. The tribunal ruled that Nigeria was guilty of expropriation and other breaches of the China-Nigeria bilateral investment treaty, ordering the country to pay $55.6 million plus interest and costs.
This development is the latest in a long-standing legal battle between Zhongshan and Nigeria, with the Chinese company also attaching a £20 million debt relating to the high-profile P&ID case.
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