Nigeria Fights Back: Appeals U.S. Court Ruling to Block $70 Million Asset Seizure

Nigeria Fights Back: Appeals U.S. Court Ruling to Block $70 Million Asset Seizure

Nigeria has taken the risky decision to appeal to the U.S. Supreme Court in order to prevent Chinese investors from taking $70 million in crude earnings.

The investors, Zhongshang Fucheng Industrial Investment, had sought to claim the money after a dispute with former Governor Ibikunle Amosun. They accused Amosun of breaching a contract and illegally detaining their representatives in Nigeria.

In retaliation, Zhongshang began targeting Nigeria’s foreign assets, including two guest houses in Liverpool, UK, and two aircraft in France and Canada.

The investors had already won a favourable judgement from a UK court in 2021, securing $55.6 million in compensation, $75,000 in moral damages, and additional fees.

Taking the UK ruling to the U.S., Zhongshang aimed to enforce it, where Nigeria’s JP Morgan account was located.

The Nigerian government, determined to protect its assets, invoked sovereign immunity in the U.S. Court of Appeals for the District of Columbia. However, the court dismissed Nigeria’s defence on August 9, declaring it insufficient.

On September 26, the court gave Nigeria one last chance, offering an extension to file a writ of certiorari before the Supreme Court by November 7. The government filed the petition on that date, hoping the Supreme Court would review the case.

Keith Bradley, Nigeria’s lawyer, confirmed the filing, stating, “Nigeria respectfully asks that, consistent with the September 26th Order, the clerk continue to withhold issuance of the mandate pending the final disposition of the matter.”

The U.S. Supreme Court now has the power to decide whether to accept Nigeria’s appeal. If the court rejects it, Nigeria will have no choice but to comply with the lower court’s ruling and hand over the $70 million.

In a statement from August, former Governor Amosun admitted he had been misled by the investors and failed to properly verify their claims before signing the contract.