A court in the British Virgin Islands has granted Chinese investors, Zhongshan, the right to seize £20 million ($25 million) from Nigeria’s foreign-denominated assets following a failed Ogun trade zone agreement initiated in the early 2000s during the tenure of then-Governor Ibikunle Amosun.
On November 8, Justice Paul Webster of the British Virgin Islands High Court ruled that Nigeria could not claim immunity from enforcing an arbitral award in Zhongshan’s favor.
The decision was grounded in the bilateral investment treaty between China and Nigeria, which mandates the enforcement of arbitration awards between the two nations.
The judge interpreted the treaty’s clauses as Nigeria’s written consent to enforcement, allowing Zhongshan to pursue judgment debt recovery.
Justice Webster referenced Section 13(3) of the State Immunity Act 1978, requiring the British Virgin Islands to permit Zhongshan to recover the debt from Nigeria’s assets located in the UK.
This ruling adds to Nigeria’s mounting legal setbacks internationally. Courts in France, Belgium, Canada, and the United States have similarly dismissed Nigeria’s sovereign immunity defenses in favor of Zhongshan.
Zhongshan’s legal team, led by King’s Counsel Timothy Otty and Lauren Peaty from Withers British Virgin Islands, alleged that the Ogun trade zone deal was unilaterally terminated under Amosun’s administration.
They further claimed that Zhongshan’s representatives were detained and tortured under the former governor’s directives, compelling the investors to seek recourse in foreign jurisdictions.
Zhongshan has been enforcing a $70 million arbitral award, targeting Nigeria’s dollar-denominated crude oil revenues held in JP Morgan accounts in the United States. While U.S. courts rejected Nigeria’s immunity claims, the case now awaits a decision from the U.S. Supreme Court, following Nigeria’s November 7 filing for a writ of certiorari. Until the Supreme Court rules, Zhongshan’s access to these funds remains pending.
Meanwhile, the Chinese investors have started seizing Nigeria’s overseas assets to recover the debt, including two guest houses in Liverpool and aircraft in France and Canada.
Amosun, who signed the controversial agreement, has faced widespread criticism. In August, he acknowledged that he failed to verify Zhongshan’s claims before entering the agreement, later describing their assertions as fraudulent.