The UK Court of Appeal just held that Nigeria is liable for a hefty USD 70 million arbitration award!
🍿 What Happened?
In 2010, Zhongsan Fucheng Industrial Investment Co Ltd, via its parent company, acquired development rights for a free trade zone in Ogun state, Nigeria.
In 2011, Zhongsan established a Nigerian entity to manage the project with the approval of the Ogun state government.
In July 2016, Zhongsan accused the state government of abruptly terminating its appointment and attempting to install a new manager for the free trade zone.
Thereafter, Zhongsan initiated an investment treaty arbitration against Nigeria under the China-Nigeria Bilateral Investment Treaty ("BIT").
🤔 Arbitration Award
The arbitral panel held that Nigeria had breached its BIT obligations. Zhongsan was awarded USD 70 million (“Arbitration Award”).
In January 2022, Zhongsan sought to enforce the Arbitration Award. Nigeria claimed state immunity.
The UK Court of Appeal has now dismissed Nigeria’s claim.
