The Nigerian government has secured temporary relief from a U.S. appeals court to delay a $70 million asset seizure by Zhongshang Fucheng Industrial Investment Ltd. The Chinese company sought to seize the funds from Nigeria’s crude earnings account with JP Morgan after a failed free-trade-zone deal in Ogun State during former Governor Ibikunle Amosun's administration. Amosun had admitted to not properly reviewing the contract terms before signing.
The U.S. Court of Appeals for the District of Columbia Circuit granted Nigeria a stay of execution, allowing the country to file a petition for a writ of certiorari with the U.S. Supreme Court. This petition would request the Supreme Court to review the lower court's decision dismissing Nigeria’s sovereign immunity claim.
The stay will remain in place until the Supreme Court either rules on the case or declines to hear it. If the writ is denied, Nigeria must prepare for trial at the lower court. Zhongshang is pursuing compensation for damages, which include claims of torture of its expatriates by Nigerian police. In a separate case, Nigerian businessman Louis Emovbira Williams has also been authorized to seize $21 million from Nigeria's JP Morgan account over a different dispute.