US Court Orders Release of Seized $6 Million Arms Funds to Nigeria

Nigeria has successfully secured the release of over $6 million in funds that had been seized by the United States government since 2014. The US District Court for Eastern California ruled on December 23, 2024, ordering the transfer of the funds to the Nigerian government, along with accrued interest, within 60 days.

The funds were originally frozen nearly a decade ago when they were linked to an arms broker attempting to supply military equipment to Nigeria without the required license. The US government cited violations of the Arms Export Control Act, leading to the seizure. The broker, an American firm Dolarian Capital Inc. (DCI), received $6.02 million from Nigeria to procure arms during the height of the Boko Haram insurgency in 2014. However, the deal stalled when US authorities denied the required approvals.

This setback left Nigeria in a precarious position, having neither the funds nor the arms it sought to purchase. The situation was further complicated by allegations of irregularities in the handling of arms procurement funds. Some of the funds were linked to a Nigerien arms dealer, Hima Aboubakar, and highlighted the widespread misuse and opacity in Nigeria’s defense contracting process at the time.

The US government’s preliminary forfeiture of the funds was formalized in 2019 after DCI’s owner, Mr. Dolarian, pleaded guilty to brokering military equipment sales without proper authorization. Despite public announcements inviting claims to the funds, Nigeria was the only party to come forward, initiating a recovery effort in 2021 through US-based lawyer Jovi Usude.

After years of legal back-and-forth, the US government acknowledged Nigeria’s rightful claim to the money in December 2024. Assistant United States Attorney Kevin Khasigian confirmed the agreement, which Judge Jennifer Thurston formalized in her final order.

This legal outcome represents a rare triumph in Nigeria’s ongoing efforts to reclaim misappropriated funds. However, it also underscores a troubled history of arms procurement scandals. Similar controversies during the same period saw South Africa seize $5.7 million linked to a separate arms deal and the recovery of $8.9 million looted through fraudulent contracts in Jersey Island.

These cases have spotlighted the misuse of Nigeria’s defense funds, including allegations against former National Security Adviser Sambo Dasuki, who is accused of diverting $2 billion in arms funds. Dasuki and others remain on trial, facing charges of financial misconduct.