- British Virgin Islands court ruled that Zhongshan, a Chinese investor group, is entitled to seize $25 million from Nigeria’s foreign-denominated assets
- Justice Paul Webster dismissed Nigeria’s sovereign immunity claim, ruling in favour of the Chinese investor group
- Nigeria's Presidency vowed to study the ruling and will take necessary steps to appeal and potentially reverse the judgment
A British Virgin Islands court has ruled in favour of Zhongshan, a consortium of Chinese investors, allowing them to seize $25 million from Nigeria's foreign-denominated assets due to the collapse of the Ogun Free Trade Zone project, which unravelled under the governorship of Ibikunle Amosun in the early 2000s.
The ruling, delivered by Justice Paul Webster on November 8, 2024, confirmed that Nigeria is not immune from the execution of an arbitral award and the subsequent judgment debt owed to the Chinese firm, Zhongshan.
Nigeria to seek reversal of $25 million judgement
Following this, the Presidency has quickly assured that the federal government is examining the judgment and will provide an appropriate response.
According to Daniel Bwala, Special Adviser to the President on Policy Communication, the judgment is not immediately enforceable, and Nigeria plans to seek its reversal.
“Based on what is before me, the preliminary response as is that this is not a judgment that will be enforced immediately. It is like a warning to the country to enter its defence and until such is done, the judgement cannot be enforced,” Bwala stated.
British Court rules in favour of Zhongshan
The judge ruled that, under Section 13(3) of the State Immunity Act 1978, the British Virgin Islands is required to permit Zhongshan to enforce the judgment debt against Nigeria from the UK.
This ruling adds to a series of setbacks Nigeria has faced in foreign courts in recent years.
The British court, relying on prior judgments from jurisdictions including France, Belgium, Canada, the United States, and the British Virgin Islands, determined that Nigeria was liable to pay the debt and ruled that the country's claim of sovereign immunity was unfounded and could not be applied to Zhongshan.
Nigerian Government to appeal $25 million judgement
Zhongshan was reportedly represented in the case by Timothy Otty (King’s Counsel) and Lauren Peaty from Withers British Virgin Islands.
reacted to the ruling, Bwala emphasised that, “No Judgement is considered substantive or said to carry ‘a natural Justice unless both parties are present in court.”
Bwala pointed out that Nigeria has the option to appeal and have the judgment set aside, and assured that the federal government will study the decision and respond appropriately.
Ex-governors Daniel, Amosun clarify their involvement in presidential jet seizure saga
Meanwhile, TheRadar earlier reported that Nigeria’s presidential jets were seized in Paris, which led to the revelation of a legal battle the country had with a Chinese company.
The Ogun State Government was named and previous governors had attempted to clear names.