Breaking: Court Approves Chinese Investors’ Bid to Claim $25 Million from Nigeria

A court in the British Virgin Islands has ruled in favor of Chinese investors, Zhongshan, allowing them to seize £20 million ($25 million) from Nigeria’s foreign assets. This decision stems from a failed Ogun trade zone agreement dating back to the early 2000s during the tenure of former Governor Ibikunle Amosun....CONTINUE READING>>>

On November 8, Justice Paul Webster of the British Virgin Islands High Court determined that Nigeria could not claim sovereign immunity to block the enforcement of an arbitral award granted to Zhongshan. The ruling cited the bilateral investment treaty between China and Nigeria, which mandates enforcement of arbitration awards.

Justice Webster further invoked Section 13(3) of the State Immunity Act 1978, permitting Zhongshan to recover the debt from Nigeria’s UK-based assets.

This case adds to a series of international legal challenges Nigeria has faced, with courts in France, Belgium, Canada, and the U.S. similarly dismissing Nigeria’s sovereign immunity arguments.

The dispute originates from Zhongshan’s claims that their trade zone deal was unilaterally terminated by Amosun’s administration. They also alleged maltreatment of their representatives, leading them to seek redress in foreign courts.

Zhongshan has been actively pursuing enforcement of a $70 million arbitral award by targeting Nigeria’s assets globally. These include Nigeria’s crude oil earnings held in U.S. JP Morgan accounts and overseas properties, such as guest houses in Liverpool and aircraft in France and Canada.

While the U.S. courts have also rejected Nigeria’s immunity claims, the matter is now pending before the U.S. Supreme Court.

Former Governor Amosun has come under criticism for his role in the failed agreement, admitting in August that he did not verify Zhongshan’s claims before signing the contract.