Headlines
Nigeria Loses Sovereign Immunity Claim As US Court Upholds $70m Award to Chinese Firm
Nigeria’s claim to sovereign immunity cannot stand in a commercial venture, a US Appeal Court has ruled.
The court rejected Nigeria’s sovereign immunity defence to the enforcement of a $70 million investment treaty award won by Zhongshan Fucheng Industrial Investment Co. Ltd., a Chinese investor, in a free trade zone.
Nigeria had “gruesomely” violated both fundamental and commercial rights of the Chinese firm, judges at the US Court of Appeals in Washington DC ruled.
In a 2-1 verdict delivered on August 9, documents of which are attached, majority ruling affirmed the judgment of the US district court for the District of Columbia that held that the arbitration award is enforceable.
In January 2023, Beryl Howell, the presiding judge of the lower court, dismissed Nigeria’s argument that the court did not have jurisdiction over the case since the country is a sovereign entity.
Howell held that the court has jurisdiction since the United Kingdom (UK), where the $70 million arbitration award was issued against Nigeria, is a signatory to the New York Convention.
In 2010, Zhongshan, through Zhuhai Zhongfu Industrial Group Co. Ltd. (Zhuhai), its Chinese parent company, acquired rights to develop a free trade zone in Ogun state.
A year later, Zhongshan set up Zhongfu International Investment (NIG) FZE (Zhongfu), a Nigerian entity, to manage the project under the permission of the Ogun state government.
However, things took a different turn in July 2016 when the investor accused the state government of abruptly moving to terminate its appointment while attempting to install a new manager for the free trade zone.
Subsequently, Zhongfu initiated an investment treaty arbitration against Nigeria under the bilateral investment treaty between the People’s Republic of China and Nigeria (the China-Nigeria BIT).
The arbitrators had ruled that Nigeria was in breach of its obligations under the China-Nigeria BIT and awarded Zhongshan compensation of around $70 million.
In January 2022, the Chinese company initiated a case to seek enforcement of the arbitration award.
Nigeria pleaded state immunity but was turned away by Sara Cockerill, a high court judge in the UK, who said the country abused the time frame for appealing arbitral awards.
In the majority judgment, the US appellant court held that the final arbitration award is enforceable under the New York convention since the dispute is between “persons” that share a legal commercial relationship.
The court ruled that the Foreign Sovereign Immunities Act (FSIA) arbitration exception stripped Nigeria of the sovereign immunity in the arbitration award case.
“For the foregoing reasons, we hold that the final award is enforceable under the New York convention because it arose out of differences between ‘persons’ that share a legal, commercial relationship,” the majority judgment reads.
“The district court therefore has jurisdiction over this case under the FSIA’s arbitration exception. The judgment of the district court is affirmed.”
The majority judgment was issued by Patricia Millett and Julianna Childs.
In the dissenting judgment, Gregory Katsas, the third judge, argued that when the New York convention was drafted, the word “persons” did not include a sovereign nation.
Katsas held that the action of Ogun State cannot be attributed to Nigeria, adding that the arbitration award “arises solely out of Nigeria’s sovereign acts governed by public international law”.
“Text, legal context, and drafting history all indicate that the word ‘persons,’ as used in the New York Convention, does not include signatory nations acting as sovereigns. I respectfully dissent,” Katsas said.
Three days after the judgment of the US appeal court, a Paris court in France ordered the seizure of three jets belonging to the Nigerian government over the dispute involving the arbitration award to the Chinese firms.
In 2023, a court of appeal in the UK ruled that Nigeria is liable for a $70 million arbitration award in favour of the Chinese firm.
The development means that Nigeria has lost arbitration award cases against the Chinese firm in France, the US, and the UK.
The Nigerian government has accused the Chinese firm of attempting to use deceptive means to acquire the country’s offshore assets.
Agency Report
Below is the detailed judgment:
United States Court of Appeals
Headlines
‘Hands off’: Millions of People Join Protests Against Trump and Elon Musk Across All US States
Millions of people took part in protests against President Donald Trump and Elon Musk across all 50 states and globally on Saturday, organized by a pro-democracy movement over “hostile takeover” and attack on American rights and freedoms.
According to CNN, over 1,400 “Hands Off!” mass-action protests were held at state capitols, federal buildings, congressional offices, Social Security’s headquarters, parks and city halls throughout the entire country – anywhere “we can make sure they hear us,” organizers said.
“Hands Off!” demands “an end to this billionaire power grab.”
“Whether you are mobilized by the attacks on our democracy, the slashing of jobs, the invasion of privacy, or the assault on our services – this moment is for you,” the event flyers state. “We are setting out to build a massive, visible, national rejection of this crisis.”
Nearly 600,000 people had signed up to attend the events, some of which took place in major cities like London and Paris, according to Indivisible, one of the organizations leading the movement in collaboration with a nationwide coalition that includes civil rights organizations, veterans, women’s rights groups, labor unions and LGBTQ+ advocates.
Organizers say they have three demands: “an end to the billionaire takeover and rampant corruption of the Trump administration; an end to slashing federal funds for Medicaid, Social Security, and other programs working people rely on; and an end to the attacks on immigrants, trans people, and other communities.”
Commissioner of Police, CP Olajide Rufus Ibitoye, acting on the orders of the Inspector General of Police, Kayode Egbetokun, through the Deputy Inspector-General of Police in-charge of Force Intelligence Department (FID) Abuja, has extended an invitation to the Emir of Kano, Muhammad Sanusi II, for an “investigative meeting with regards to an incident that occurred during the Sallah celebration within your domain”.
The said incident is in connection with the violence that broke out during the recent Eid-el-Fitr procession in Kano, which resulted in the death of a local vigilante member.
The incident happened as the Emir’s entourage moved from the Eid prayer ground to the palace in a traditional procession. The clash, which marred the otherwise peaceful celebration, led to the tragic loss of life of a vigilante member, Surajo Rabiu, and left one other injured.
The invitation was conveyed in an official letter dated April 4, 2025, and signed by Commissioner of Police, CP Olajide Rufus Ibitoye, on behalf of the Deputy Inspector-General of Police in-charge of Force Intelligence Department (FID) Abuja.
The letter reads: “I have the directives of the Inspector General of Police, through the Deputy Inspector General of Police, Force Intelligence Department (FID), to invite you for an investigative meeting with regards to an incident that occurred during the Sallah celebration within your domain.”
The Emir has been requested to appear before the Force Intelligence Department in Abuja, opposite the Police Headquarters, Area 11, by 10:00am on Tuesday, April 8, 2025.
This development comes amid heightened tensions in Kano State following the earlier decision by the State Police Command to ban the annual Durbar festival due to security concerns. The ban, announced days before the Eid-el-Fitr celebration, was intended to prevent any possible breakdown of law and order during the festive period.
However, despite the suspension of the Durbar, a motorcade procession of Emir Sanusi II still took place on the third day of the Eid-el-Fitr celebrations.
The Kano State Police Commissioner, CP Ibrahim Adamu Bakori, had also inaugurated an eight-member Special Investigation Panel (SIP) to investigate the violence.
As at the time of this report, there has been no official response from the Emir Sanusi II’s palace regarding the Police invitation.
Dr Hakeem Baba-Ahmed, the political adviser to President Bola Tinubu, has resigned his appointment.
Reports say the former spokesman of the Northern Elders Forum (NEF) tendered his resignation about two weeks ago.
Further reports quoting presidency sources did not, however, provide details of the reasons for his decision, but only stated that it was on personal grounds.
Baba-Ahmed was appointed in September 2023 as Special Adviser on Political Matters in the Office of Vice President Kashim Shettima.
Over the past 17 months, he had represented the presidency at several public fora, including a recent national conference themed: “Strengthening Nigeria’s Democracy: Pathway to Good Governance and Political Integrity”, which held from January 28 and 29, 2025 in Abuja.
