Court Grants Chinese Investors Right to Seize $25m from Nigeria’s Assets

The British Virgin Islands High Court has granted Chinese investors, Zhongshan, permission to seize $25 million from Nigeria’s foreign assets in a landmark ruling that intensifies a long-running legal battle.

The court’s decision, handed down on November 8, follows a disputed trade zone agreement dating back to the early 2000s between Zhongshan and the Ogun State government, led at the time by former Governor Ibikunle Amosun.

The legal action stems from Zhongshan’s claim that the agreement, which was abruptly terminated by Amosun’s administration, led to financial losses and severe mistreatment by Nigerian authorities.

Justice Paul Webster ruled that Nigeria’s sovereign immunity does not apply in this case, citing the bilateral investment treaty between China and Nigeria, which obligates both countries to enforce arbitral awards.

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“The phrase ‘both contracting parties shall commit to the enforcement of the award’ signifies Nigeria’s written consent to waive immunity in this context,” Justice Webster stated in the ruling.

This decision adds to a series of international legal setbacks for Nigeria. Courts in the United Kingdom, France, Belgium, Canada, and other countries have upheld the debt owed to Zhongshan, rejecting Nigeria’s arguments of sovereign immunity.

In response to these rulings, the Chinese investors have moved aggressively to recover the debt, including targeting Nigeria’s foreign assets.

Zhongshan, represented by King’s Counsel Timothy Otty and Withers British Virgin Islands, alleges that the termination of the trade zone deal was accompanied by illegal detention and torture orchestrated by former Governor Amosun’s government.

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Zhongshan has now secured judgments to seize Nigerian assets abroad, including real estate and aircraft in the UK, France, and Canada.

Also, Zhongshan is targeting Nigeria’s crude oil earnings held in U.S. banks as part of an ongoing effort to enforce a $70 million arbitration award. U.S. courts have already dismissed Nigeria’s claims of sovereign immunity in this case, further complicating the country’s legal strategy.

Nigeria has responded by filing an appeal in the U.S. Supreme Court, seeking a review of lower court decisions that allowed the seizure of assets.

However, while the legal process unfolds, Zhongshan has successfully pursued the sale of Nigerian assets in the British Virgin Islands.