In a landmark decision, Judge Jennifer L. Thurston of the U.S. District Court for the Eastern District of California has directed the Federal Bureau of Investigation (FBI) to transfer approximately $6 million, confiscated from convicted arms dealer Ara Dolarian, to the Nigerian government through its legal representative, Jovi Usude.
Legal Battle for Nigeria’s Funds
The case stemmed from a complex legal dispute that began in 2015, following the discovery that the funds—originally transferred by the Nigerian government for arms procurement—were misappropriated by Mr. Dolarian.
Nigerian lawyer Jovi Usude argued before the U.S. court that the seized funds were the rightful property of Nigeria, not the arms dealer, and should be returned.
Mr. Usude emphasized that the funds had been sent for the procurement of military-grade weapons to support Nigeria’s fight against Boko Haram during the 2014 security crisis.
However, Mr. Dolarian, who lacked the necessary licenses to conduct arms deals, diverted the funds to personal use, including the purchase of luxury assets and tax settlements.
In 2022, Mr. Usude petitioned the court to recognize Nigeria’s superior claim to the funds, asserting that the country was unaware of the illegal dealings. The protracted legal proceedings concluded on December 23, 2024, when Judge Thurston issued a final order of forfeiture, recognizing Nigeria’s ownership and directing the transfer of the funds.
Background of the Case
The transaction originated in 2014 under the administration of former President Goodluck Jonathan. Amid the escalating Boko Haram insurgency and ahead of the 2015 general elections, the former National Security Adviser, Sambo Dasuki, sought to acquire sophisticated military weapons through Mr. Dolarian. An $8.6 million payment was made to Mr. Dolarian’s account for weapons ranging from high-explosive bombs to aircraft-mounted cannons.
However, instead of fulfilling the contract, Mr. Dolarian used over $1 million for personal expenses. His extravagant spending attracted FBI scrutiny, leading to the discovery of his illegal operations. He was subsequently charged and pleaded guilty to arms trafficking and money laundering in 2019.
The FBI seized $6.1 million of the unspent funds, which became the subject of a legal battle between Nigeria and U.S. authorities.
A Victory for Nigeria
This case marks a significant win for Nigeria in its ongoing efforts to recover assets tied up in international disputes. It highlights the critical role of effective legal representation in reclaiming misappropriated public funds.
The decision sets a precedent for future cases as Nigeria continues to assert its rights over assets lost to corruption, fraud, and illegal transactions on the global stage.
Nigeria Won $200 Million Case Against UK Firm Process and Industrial Development (P&ID)
In another victory for Nigeria on the international stage, a UK court ruled in October 2023 that the West African nation was not liable for a $10 billion judgment debt claimed by Process and Industrial Development (P&ID), a British engineering firm.
The dispute arose from a 2010 gas supply and processing agreement between the Nigerian government and P&ID. The company accused Nigeria of breaching the contract, leading to an arbitration award of $6.6 billion in its favor, which later ballooned to $10 billion with interest.
However, the Nigerian government, through its legal team, argued that the contract was fraudulent, pointing to evidence of bribery and corruption. The court agreed, nullifying the arbitration award and saving Nigeria from paying the hefty sum.
This case and the recent $6 million win in the U.S. highlight Nigeria’s growing success in combating international financial disputes and recovering funds or assets tied to fraudulent or controversial deals. These victories bolster the government’s resolve to protect national resources and deter future exploitation by unscrupulous entities.