Nigeria kicks, vows to appeal $25m judgment in favour of Chinese firm

The Federal Government has said it will appeal a recent judgment by the British Virgin Islands High Court, which granted a Chinese company, Zhongshan Fucheng Industrial Investment Company Limited, the right to seize $25 million from Nigeria’s foreign assets.

The company had sought relief over a failed trade zone agreement it signed with Ogun State under former Governor Ibikunle Amosun’s administration.

“This is not a judgment that will be enforced immediately.

“The ruling serves as a warning, and until Nigeria has the opportunity to enter its defense, the judgment cannot be enforced. We still have the chance to appeal and vacate the ruling,” the Special Adviser to the President on Policy Communications, Daniel Bwala, said in a statement yesterday in Abuja.   The dispute stemmed from a 2010 agreement in which Zhongshan secured the rights to develop a free trade zone in Ogun State.

But the project was terminated by the state government in 2016, propelling Zhongshan to initiate an investment treaty arbitration under the bilateral investment treaty between China and Nigeria.

The arbitration tribunal ruled in favour of Zhongshan, awarding the company approximately $70 million in compensation. Nigeria argued for state immunity, but its defence was rejected by the United Kingdom (UK) courts.

Bwala added: “The Presidency remains committed to defending Nigeria’s interests. We will continue to examine all options and take the necessary steps to address these legal challenges, ensuring that Nigeria’s rights and assets are preserved.”