In a landmark decision, a US appellate court has stripped Nigeria of its sovereign immunity, paving the way for a Chinese consortium to confiscate Nigerian assets abroad.

This ruling has exacerbated a crisis that President Bola Tinubu has been trying to contain in Europe.

On August 9, 2024, the US Court of Appeals for the District of Columbia in Washington ruled that Nigeria had flagrantly violated the fundamental and commercial rights of Chinese executives. 

The Chinese firm, Zhongshan, had entered into a trade zone agreement with Nigeria but was left with no choice but to seek redress in the US judicial system after winning an arbitration award in the UK in 2021.

"We are pleased that the US court has recognized the egregious violations of our rights by Nigeria," said a spokesperson for Zhongshan. "We will continue to pursue our rightful claims and ensure that Nigeria honors its obligations."

The court's decision has significant implications, as Nigeria now faces the risk of asset seizure abroad. The Chinese expatriates were awarded $55.6 million in compensation, $75,000 in moral damages, plus interest, legal, and arbitration fees.

This ruling serves as a warning to nations that violate international agreements and disregard the rights of foreign investors.