Chinese firm takes over Nigeria’s guest houses in Liverpool

Chinese firm Zhongshan Fucheng Industrial Investment Co. Limited has reportedly seized Nigeria’s guest houses in Liverpool, England.

Reports had emerged last week claiming that Zhongshan was planning to take over assets belonging to Nigeria in eight countries spread across Europe and North America to collect $70 million from a 2021 arbitration verdict.

Zhongshan had also been given an order by a court in Paris, France, to seize three presidential jets owned by the Federal Government in Europe while planning to take over a few others.

The Chinese firm was said to have as a result instituted legal proceedings in about eight countries regarding the dispute with Nigeria.

Peoples Gazette on Wednesday reported that Zhongshang has now concluded plans to sell two residential structures it confiscated from Nigeria on global online marketplace, eBay.

“Zhongshang took possession of two buildings linked to the Nigerian government in Liverpool, United Kingdom in June 2024, years after Nigeria failed to settle an arbitration judgement handed down in 2021,” report read.

“The properties, 15, Aigburth Hall Road, Liverpool and Beech Lodge, 49, Calderstones Road, Liverpool, were targeted after a December 2021 British court order gave Zhongshang executives the power to seize Nigerian assets in the UK to retrieve the $70 million payment, which remained outstanding as of August 20, 2024, with two per cent monthly interest accruals.

“Zhongshang was awarded $55,675,000 plus interest of $9,400,000 and costs of £2,864,445 as of the date of the arbitration verdict on March 26, 2021, court documents said. The case stemmed from a dispute between Zhongshang and Ogun State.

“The firm said the state violated a 2001 trade treaty between Nigeria and China when its rights to a free trade zone were rescinded in 2016.”

According to the report, a consultant working with Zhongshang disclosed that the Chinese firm has been working to put the two Liverpool houses up for sale, including on eBay, where the source said up to $2.2 million would be asked for both.

“They said the value of both properties should be around $2.2 million, so they already put together a plan to sell them to willing buyers,” the consultant said under anonymity to discuss client deliberations.

The consultant was quoted to have said that some websites like eBay might bring buyers faster than other methods.

The Presidency, meanwhile, has accused Zhongshan of plotting to take over Nigeria’s offshore assets using unorthodox means.

The Special Adviser to President Bola Tinubu on Information and Strategy, Bayo Onanuga, made the accusation against Zhongshan in a statement last Thursday.

Onanuga said the presidency has uncovered secret attempts by the Chinese firm to take over Nigeria’s offshore assets.

He also distanced the presidency from the company, adding that the Federal Government is not under any contractual obligation with Zhongshan.

“The Presidency is aware of the various failed attempts by a Chinese company, Zhongshan Fucheng Industrial Investment Co. Limited, to take over offshore assets of the Federal Government of Nigeria through subterfuge,” Onanuga said.

“The Federal Government is not under any contractual obligation with the company. The case in which Zhongshan is trying to use every unorthodox means to strip our offshore assets is between the company and the Ogun State Government.”