A court in the British Virgin Islands has, again, granted Zhongshan Fucheng Industrial Investment Co. Ltd, a Chinese firm, the authority to seize another £20 million ($25 million) from Nigeria’s foreign denominated assets over an Ogun trade zone deal that fell through in the early 2000s under the administration of Ibikunle Amosun, the then governor of Ogun state.
In a swift reaction, the Presidency has assured that the federal government is studying the judgment and will respond appropriately.
Daniel Bwala, Special Adviser to the President on Policy Communication, told BusinessDay that the judgment cannot be enforced immediately, noting that Nigeria will vacate the judgement.
Reports had revealed that Paul Webster, a judge at the British Virgin Islands High Court, in his judgement of November 8, 2024, held that Nigeria was not immune to execution of an arbitral award and subsequent judgment debt in favour of the Chinese company, Zhongshan, as a result of the wording of the underlying bilateral investment treaty concluded between China and Nigeria.
The judge held that a term of the treaty which provided that “both contracting parties shall commit to the enforcement of the award” constituted “a written consent of the Nigerian state.”
The judge, therefore, held that based on Section 13(3) of the State Immunity Act 1978, the British Virgin Islands must allow Zhongshan to enforce the judgement debt against Nigeria from the UK.
The ruling marks the latest in a string of losses Nigeria has suffered in foreign jurisdictions over the past years.
