DAILY TRUST
An appeal court in the United States (US) has authorised Zhongshan Fucheng Industrial Investment Co. Ltd, a Chinese firm, final charging orders over two residential properties owned by Nigeria.
This comes as the Chinese firm seeks to enforce a $70 million arbitration award against the Nigerian government.
The majority ruling, in a verdict delivered on August 9, affirmed the judgment of the US district court for the District of Columbia that held that the arbitration award is enforceable.
Daily Trust reports that the latest development worsens a crisis that the Nigerian government has been attempting to manage in Europe and prevent from spilling to other jurisdictions.
A French court had earlier authorised the seizure of the three presidential jets due to the ongoing dispute between Zhongshan and the Ogun State government.
However, the Presidency said it is aware of the development, accusing Zhongshan of attempting to take over offshore assets of the country through subterfuge.
In January 2023, Beryl Howell, the presiding judge of the lower court, dismissed Nigeria’s argument that the court did not have jurisdiction over the case since the country is a sovereign entity.
Howell held that the court has jurisdiction since the United Kingdom (UK), where the $70 million arbitration award was issued against Nigeria, is a signatory to the New York Convention.
In 2010, Zhongshan Fucheng, through its parent company Zhuhai Zhongfu Industrial Group Co. Ltd, acquired rights to develop a free trade zone in Ogun State, Nigeria.
In 2011, Zhongshan established Zhongfu International Investment (NIG) FZE to manage the project with the Ogun state government’s permission.
In July 2016, Zhongshan accused the Ogun state government of attempting to terminate its appointment and install a new manager for the free trade zone.
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