Nigeria has achieved a significant legal victory, recovering over $6 million in arms funds seized by the United States government nearly a decade ago. The US District Court for Eastern California, in a ruling issued on December 23, ordered the release of $6.02 million to the Nigerian government, along with accrued interest.
The funds were initially seized in 2014 after an American arms broker, involved in a deal to supply military equipment to Nigeria, failed to obtain the necessary license. The US government argued that the broker’s activities violated the Arms Export Control Act, leading to the confiscation of the funds.
Judge Jennifer Thurston’s ruling marked the conclusion of Nigeria’s prolonged legal efforts. The court issued a permanent order of forfeiture, overturning an earlier preliminary forfeiture that had allocated the assets to the US government. The order instructed US Customs and Border Protection to release the funds within 60 days to the Nigerian government via its legal representative.
“Within sixty (60) days from entry of this Stipulation for Final Order of Forfeiture and Order Thereon, the US Customs and Border Protection shall return the above-listed assets to the petitioner, along with any interest earned by the United States while on deposit in an interest-bearing account,” the court document stated.
The $6.02 million had been paid by Nigeria in 2014 to Dolarian Capital Inc. (DCI), a US-based arms brokerage firm, during a peak in the Boko Haram insurgency. The deal collapsed when the US government denied DCI’s application to broker the arms sale, citing the firm’s lack of authorization. Subsequently, the funds were seized, and the US initiated legal proceedings to confiscate the money permanently.
Despite these challenges, Nigeria remained the sole claimant of the funds during the legal proceedings. Its efforts were spearheaded by US-based attorney Jovi Usude, who initiated recovery actions in 2021 after the criminal case against the broker had been resolved.
Following years of legal exchanges, the US government conceded Nigeria’s superior interest in the funds in December 2023. The concession paved the way for the final forfeiture order, which acknowledged Nigeria’s rightful ownership.
The controversy surrounding the seized funds sheds light on broader irregularities in Nigeria’s arms procurement processes. During the same period, Nigeria’s $5.7 million payment to a South African brokerage firm faced a similar fate due to licensing issues. Investigations in subsequent years revealed widespread misuse of funds allocated for defense contracts, prompting several legal and audit inquiries.
As Nigeria prepares to receive the recovered funds, the case underscores the need for transparency and due diligence in military procurement to avoid further setbacks in its fight against insurgency.
