A London commercial court has granted Zhongshan Fucheng Industrial Investment Co. Ltd, a Chinese company, final charging orders over two residential properties owned by the Nigerian government. The ruling comes as part of Zhongshan’s ongoing efforts to enforce a $70 million arbitration award against Nigeria, stemming from a long-standing contractual dispute.
The ruling, delivered by Master Lisa Sullivan, marks another victory for the Chinese firm, which has been locked in a legal battle with Nigeria since 2016. Nigeria’s previous attempts to challenge the court’s jurisdiction over the case were dismissed.
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The dispute originated from a 2010 agreement between Zhongshan and the Ogun State government of Nigeria, allowing the Chinese company to develop a free trade zone in the state. Zhongshan, through its parent company Zhuhai Zhongfu Industrial Group Co. Ltd, established Zhongfu International Investment (NIG) FZE in 2011 to oversee the project.
Tensions between the two sides escalated in July 2016 when Zhongfu accused the Ogun State government of abruptly terminating its appointment as project manager, attempting to install a new manager for the free trade zone. This move prompted Zhongfu to initiate investment treaty arbitration under the China-Nigeria Bilateral Investment Treaty (BIT), citing Nigeria’s breach of obligations.
In the resulting arbitration, the tribunal ruled in favor of Zhongshan, awarding the company $70 million in compensation. In *January 2022, Zhongshan sought to enforce the award in the UK, with Nigeria arguing for state immunity. However,High Court Judge Sara Cockerill rejected Nigeria’s defense, ruling that the country had delayed appealing the arbitral decision.
In July 2023, the UK Court of Appeal upheld the arbitration award, paving the way for Zhongshan to seize Nigerian assets in the UK to satisfy the $70 million judgment. The recent charging orders on the Nigerian properties are part of this enforcement effort, marking a significant step in Zhongshan’s pursuit of justice.