Headlines
Nigeria Loses Sovereign Immunity Claim As US Court Upholds $70m Award to Chinese Firm
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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
Tinubu Approves Fresh Salary Increase for Military
President Bola Tinubu has approved salary increases of between 30 and 80 per cent for personnel of the Nigerian Armed Forces, with about 250,000 officers and men set to benefit from the enhanced remuneration package aimed at boosting troop welfare and morale.
The new salary structure, which takes effect from September 1, will see officers above the rank of Colonel receive a 30 per cent salary increase, while personnel from the rank of Colonel down to Warrant Officer will enjoy a 50 per cent increment. Soldiers from the rank of Private to Staff Sergeant will receive the highest increase of 80 per cent.
The approval will raise the annual salary bill for the Armed Forces from N660 billion to N924 billion.
Special Adviser to the President on Information and Strategy, Bayo Onanuga, said the salary review underscores the Tinubu administration’s commitment to improving the welfare of military personnel in recognition of their sacrifices in safeguarding the country.
The President noted that members of the Armed Forces have continued to display courage and dedication in confronting banditry, kidnapping, terrorism and other security threats across the country.
“The men and women who help to keep us safe in our homes must be supported and appreciated in the course of their duties to our nation,” Tinubu said.
He assured that his administration would continue to prioritise troop welfare while strengthening the operational capacity of the military through improved equipment and technology.
“Our administration will continue to prioritise troop welfare and modernise the armed forces by providing the weapons and technological tools needed to discharge their duties,” the President stated.
Tinubu stressed that security remains central to national development, saying no country can attain sustainable progress without guaranteeing the safety of its citizens.
“Our administration believes that no nation can achieve greatness without security. We therefore remain resolute in mobilising all military and law enforcement assets to eliminate security threats and protect the lives and property of all Nigerians,” he said.
The President urged military personnel to see the enhanced remuneration as a demonstration of the nation’s appreciation for their service and commitment.
“I urge our servicemen to take our gesture as a sign of our deep appreciation of the services they render to our fatherland. Together we shall prevail over the enemies intent on destroying the fabric of our nation,” Tinubu added.
Headlines
Oyedepo Knocks Tinubu over Worsening Insecurity, Economic Hardship
General Overseer of Living Faith Church Worldwide aka Winners Chapel, Bishop David Oyedepo, has taken a swipe at President Bola Tinubu over the worsening insecurity and economic hardship in Nigeria.
In a viral video shared online, Oyedepo alleged that the Tinubu administration was failing to take decisive action to address the challenges bedeviling the Nigerian people.
The cleric expressed anger over the persistent attacks and killings across the country, issuing a note of warning that Nigerians who have endured the situation for a long time may no longer remain silent.
The General Overseer, however, condemned those behind the attacks and killing of unarmed Nigerians, stating that victims should not be expected to show sympathy towards the perpetrators of the heinous crime.
“The president needs to act now and stop pretending. You can’t slaughter members of my family and expect me to pray for you. I will pray against you and your household.
“The government is pretending like they don’t know what to do. I have been quiet for a long time, but the bubble is about to burst,” he fumed.
He equally accused the government of appearing unaware of the severity of the security crisis, saying leaders had failed to demonstrate the urgency required to protect citizens and restore confidence.
Headlines
2027: Tinubu Not Qualified to Contest Election, Says ADC
The African Democratic Congress (ADC) has argued that President Bola Tinubu is not qualified to contest the 2027 presidential election, citing his alleged failure to present his primary and secondary school certificates to the public.
Tinubu, in the form he submitted to the Independent National Electoral Commission (INEC) for next year’s election, reportedly left blank the sections designated for his primary and secondary school education, raising concerns among some Nigerians, particularly members of the opposition.
A lawyer and ADC chieftain, Kalu Kalu, alleged that the President committed forgery by previously presenting certificates he did not possess, an act he claimed automatically disqualifies him from contesting for the nation’s highest office. He cited Section 137(1)(j) of the 1999 Constitution, which states that a person is not qualified to run for the office of President if they have presented a forged certificate to the Independent National Electoral Commission (INEC).
He alleged that the primary and secondary schools Tinubu claimed to have attended either did not exist at the time or were falsely represented. Kalu further claimed that although Tinubu presented those certificates during the 2023 election, the due diligence carried out by the ADC’s presidential candidate, Atiku Abubakar, who was the Peoples Democratic Party (PDP) presidential candidate in the last general election, had prompted the President to remain silent about his primary and secondary school education in his latest submission to INEC.
Kalu also questioned the authenticity of President Tinubu’s Chicago State University certificate, saying it had been subjected to scrutiny in a United States court.
The ADC stalwart said: “Atiku Abubakar went for the discovery of the academic records of Bola Ahmed Tinubu and the US court directed Chicago State University to release those academic records of Bola Ahmed Tinubu. And when they were released, it was found that Bola Ahmed Tinubu made a very dangerous false entry that he attended Government College, Lagos and graduated in 1970, whereas Government College, Lagos, was not even in existence in 1970; it was established in 1974. That’s one.
Speaking on whether the matter could be relitigated, Kalu said: “The challenge is that the Supreme Court’s position on pre-election matters is that only an aspirant can challenge another aspirant in the race. Now Tinubu has emerged, and nobody from the APC is challenging him. But the issue now is Section 29 of the Electoral Act. Is the Electoral Act superior to the Constitution? The answer is no. If the Constitution says, under Section 137(1)(j), that you are not qualified to contest an election if you have presented a forged certificate to INEC.






