British Virgin Islands Court Authorizes Chinese Firm to Seize $25 Million Nigerian Assets
By Okafor Joseph Afam | November 21, 2024
The British Virgin Islands High Court has granted Zhongshan Fucheng Industrial Investment Co. Ltd, a Chinese firm, the right to seize $25 million from Nigeria’s foreign assets over a failed trade zone deal. The dispute dates back to the early 2000s during the administration of Ibikunle Amosun, then Governor of Ogun State.
The court, in its judgment delivered on November 8, 2024, ruled that Nigeria is not immune to the execution of an arbitral award in favor of Zhongshan. Justice Paul Webster cited the bilateral investment treaty between Nigeria and China, which commits both nations to enforce arbitration awards. The judge ruled that this clause constitutes Nigeria’s written consent, thus permitting the enforcement of the judgment debt under the State Immunity Act 1978.
The decision is the latest in a series of foreign legal defeats for Nigeria, following similar rulings in France, Belgium, Canada, the United States, and other jurisdictions, where the nation’s sovereign immunity arguments were repeatedly dismissed.
Zhongshan was represented by Timothy Otty, King’s Counsel, and Lauren Peaty from Withers British Virgin Islands.
Presidency’s Reaction
In a swift response, the Nigerian government vowed to challenge the ruling. Daniel Bwala, Special Adviser to the President on Policy Communication, stated that the federal government is reviewing the judgment and will act decisively.
Bwala emphasized that the ruling is not immediately enforceable, describing it as a cautionary directive for Nigeria to present its defense. “This is not a judgment that will be enforced immediately. It is more of a warning for the country to enter its defense. Until that is done, the judgment cannot be enforced,” he told BusinessDay.
The ruling underscores growing concerns over Nigeria’s exposure to international arbitration disputes and the financial implications of failed agreements. As the government prepares to appeal the judgment, the case adds to the mounting pressure on Nigeria to reassess its approach to bilateral and investment treaties.
