Nigeria government wins 10-year legal battle against America, as court orders release of seized $6 million arms funds

The United States of America (USA) has ordered the release of the seized $6 million arms funds to Nigeria, after a prolonged legal battle since 2014 by the Nigerian Government to recover the funds, while it is recalled that until the judgement, Nigeria faced a double whammy, receiving neither its funds nor the military equipment it intended to purchase with the money.

Penpushing reports that the funds were seized about a decade ago from an arms broker, who was trying to supply military equipment from the United States of America (USA) to Nigeria without having the necessary licence.

The American government noted that the arms broker’s active involvement in the sale, export, and supply of military products to Nigeria without authorisation was a violation of the Arms Export Control Act, leading to the seizure of the funds.

Penpushing further reports that a relief, however, came for Nigeria on December 23, 2024 in a ruling by District Court for Eastern California which ordered the release of the funds totalling about $6.02 million after confirming Nigeria’s interest in it.

The Judge Jenniffer Thurston in the ruling issued a permanent order of forfeiture of the money in favour of Nigeria, modifying the earlier January 2020 preliminary order forfeiting the assets to the American government.

Penpushing also reports that Thurston ordered the United States of America (USA) government to release the money with the accrued interests to the Nigerian government within 60 days.

“Within sixty (60) days from entry of this Stipulation for Final Order of Forfeiture and Order Thereon, the US Customs and Border Protection shall return the above-listed assets to Petitioner, along with any interest earned by the United States while on deposit in an interest-bearing account’, the court order read.

Penpushing reports that it is recalled that Nigeria had earlier paid agents for the purchase of military equipment during the peak of the Boko Haram insurgency in 2014, but receiving neither the funds nor the equipment it intended to purchase.

The payment of the $6.02 million trapped in the United States of America (USA) to an American arms broking firm, Dolarian Capital Inc (DCI), with some of the funds passed through an arms broker from Niger Republic, Hima Aboubakar, who secured dubious defence contracts from the Nigerian government, highlighting the widespread irregularities, secrecy and misuse that often characterise arms procurement funds in Nigeria.

Penpushing further reports that the deal ran into a roadblock in August 2014 when the American government denied Dolarian’s application for approval to purchase and export the arms to Nigeria, as of that time, Dolarian had received the money for the purchase of arms for Nigeria.

The American government seized the money, describing it as the proceeds of a violation of its Arms Export Control Act, on the grounds that Dolarian and his DCI did not have the licence to engage in the sale, export, import and brokering of military products at the time.

Penpushing also reports that at the instance of the American government, the District Court in Eastern California issued on February 2, 2015 warrants for the seizure of the money held in five different bank accounts.

The United States of America (USA) government in June 2015, applied to the District court in Eastern California for an order forfeiting the funds, it, however, secured the court’s preliminary order of forfeiture of the assets in 2019.

Penpushing reports that Dolarian, who was also charged subsequently pleaded guilty to the charge of brokering the sale of military equipment without a licence, and on January 29, 2020 the court issued a modified preliminary order for forfeiture of the money after Dolarian pleaded guilty to the charge against him.

The American government publicised the preliminary forfeiture order inviting anyone with an interest in the funds to come forward to claim it in court, only Nigerian government heeded the call to claim the money.

Penpushing further reports that its lawyers faced subtle resistance from the American government, which prolonged the legal process before formally acknowledging Nigeria’s interest and conceding to release the funds late this year.

The Nigeria after the criminal proceedings concerning the funds in the United States of America (USA) ended began to take steps to recover the money in 2021 when it hired an America-based lawyer, Jovi Usude, to handle the legal process.

Penpushing also reports that the counsel from 2021 through to early 2023 exchanged correspondences with the American government’s lawyers over the matter, but could not get a clear coast to file for the recovery of the seized assets.

The Nigerian government on June 2, 2023 started the court process for the recovery by filing a petition for an ancillary proceeding asserting it had a superior interest in the forfeited funds, explaining that it did not know that Dolarian lacked the requisite American government’s State Department approval necessary to broker the sale of military equipment.

Penpushing reports that Nigeria’s petition accordingly urged the court to enter a final order of forfeiture that reflected its superior interest in the funds forfeited by Dolarian in the preliminary order of forfeiture.

The American government after a long-drawn back-and-forth finally signed on December, 19, a stipulation for a final forfeiture order of the assets in favour of the Nigerian government, while Nigeria’s lawyer signed the document on August 29.

Penpushing further reports that the document signed by an Assistant United States Attorney, Kevin Khasigian, was filed in court on December 22, confirming Nigeria’s interest in the money, and after reviewing Nigeria’s petition and records from the criminal investigation, the American government acknowledged that Nigeria had a legal right, title, or interest in the assets.

The document as a result of this added that such right, title, or interest requires the court to enter a Final Order of Forfeiture, to reflect Nigeria’s superior interest, hence the court order for permanent forfeiture in Nigeria’s favour

Penpushing also reports that the filing paved the way for Judge Thurston to issue an order of permanent forfeiture of the funds in favour of Nigeria on December 23, while he equally ordered the American Customs and Border Protection to release the money to the Nigerian government through  Usude’s law office’s Client Trust Account within 60 days.

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