Chinese Investors have seized Nigeria’s $25 Million amid hardship.
NewsOnline Nigeria reports that a court in the British Virgin Islands has authorized Chinese investors, Zhongshan, to seize £20 million ($25 million) from Nigeria’s foreign-denominated assets due to a failed Ogun trade zone agreement dating back to the early 2000s, during the tenure of then-Governor Ibikunle Amosun.
On November 8, Justice Paul Webster of the British Virgin Islands High Court ruled that Nigeria could not claim immunity from the enforcement of an arbitral award in favor of Zhongshan.
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The decision was based on the bilateral investment treaty between China and Nigeria, which included a clause stipulating that both nations must enforce arbitration awards.
According to Peoples Gazette, the judge interpreted this clause as Nigeria’s written consent to enforcement under the treaty, thus enabling Zhongshan to pursue judgment debt collection.
Justice Webster cited Section 13(3) of the State Immunity Act 1978, mandating the British Virgin Islands to permit Zhongshan to recover the debt from Nigeria’s assets in the UK.
This judgment is part of a growing list of legal setbacks Nigeria has faced internationally. Courts in France, Belgium, Canada, the United States, and other jurisdictions have also dismissed Nigeria’s sovereign immunity arguments, consistently ruling in favor of Zhongshan.
Zhongshan’s legal team, led by King’s Counsel Timothy Otty and Lauren Peaty of Withers British Virgin Islands, claimed the Ogun trade zone deal was unilaterally terminated by Amosun’s administration.
They alleged that their representatives were detained and tortured under the former governor’s orders, prompting them to seek justice in foreign courts.
In a bid to enforce a $70 million arbitral award, Zhongshan targeted Nigeria’s dollar-denominated crude earnings held in JP Morgan accounts in the United States.
While U.S. courts rejected Nigeria’s sovereign immunity claims, the matter is now pending before the U.S. Supreme Court, following Nigeria’s November 7 filing for a writ of certiorari. Until the Supreme Court makes a decision, Zhongshan’s access to these funds remains delayed.
Meanwhile, NewsOnline Nigeria reports that the Chinese investors have begun seizing Nigeria’s overseas assets, including two guest houses in Liverpool and aircraft in France and Canada, to recover the debt.
Mr. Amosun, who signed the controversial contract, has faced public criticism for his role in the debacle.
In August, he admitted to failing to verify Zhongshan’s claims before entering the agreement, describing their assertions as false.
