$60M Asset Seizure: Nigerian Lawyers Contradict Presidency, Admit Federal Role in Amosun’s Harassment, Deportation of Chinese Investors

Attorneys representing Nigeria in a U.S. court have conceded that the Nigerian government played a role in the harassment and deportation of Chinese investors during former Governor Ibikunle Amosun’s administration. This admission challenges recent public statements from both the Tinubu administration and Mr. Amosun, who had denied any federal involvement in the matter.

Court documents reveal that the legal team from Squire Patton Boggs LLP, representing Nigeria, acknowledged that federal agencies, including the police and immigration, were used to expel Chinese expatriates who were managing the Ogun-Guangdong Free Trade Zone. This action, carried out during Mr. Amosun’s tenure as Ogun State governor, has embroiled Nigeria in a legal battle over a $60 million arbitration award granted by a UK court.

The controversy stems from Mr. Amosun’s decision to unilaterally remove the Chinese investors from the Free Trade Zone in Igbesa, Ogun State, without proper legal justification. The Chinese firm Zhongshan, which managed the zone, responded by seeking redress through international courts, ultimately winning a substantial compensation package.

Nigeria’s lawyers argued before the U.S. Court of Appeals for the District of Columbia that Ogun State’s actions were not sufficient to strip Nigeria of its sovereign immunity under the Foreign Sovereign Immunities Act (FSIA). They maintained that while the state government may have engaged in questionable practices, these did not implicate the federal government directly.

However, the court ruled against Nigeria, with a two-to-one majority finding that the country was liable under existing international laws and treaties. This decision paves the way for the Chinese investors to pursue the seizure of Nigerian assets in the U.S. to satisfy the arbitration award.

The case has caused significant concern within the Nigerian government, especially as reports have emerged that Chinese entities have already begun enforcing the judgment by targeting Nigerian assets abroad, including aircraft in the presidential fleet.

Despite Mr. Amosun’s admission of mishandling the transfer of the Free Trade Zone to the Chinese investors in 2012, he has consistently denied any wrongdoing in the harassment and deportation of the expatriates. Both he and the federal government have rejected allegations of using federal agencies to intimidate the Chinese executives, despite evidence presented in court suggesting otherwise.

The Tinubu administration now faces a difficult decision on whether to continue appealing the case, potentially escalating it to the U.S. Supreme Court, or to seek a settlement to avoid further asset seizures. The outcome of this legal saga could have far-reaching implications for Nigeria’s international relations and its ability to attract foreign investment.