After nearly a decade-long legal battle, Nigeria has successfully recovered over $6 million meant for purchasing military equipment. The funds had been seized by the United States in 2014 after an arms broker attempted to supply Nigeria with weapons without the required license.
The arms broker, Dolarian Capital Inc. (DCI), received $6.02 million from Nigeria during the peak of the Boko Haram insurgency. However, the US government blocked the transaction, citing a violation of the Arms Export Control Act. The funds were frozen, leaving Nigeria with neither the weapons nor the money it urgently needed.
On December 23, 2023, the US District Court for Eastern California ruled in Nigeria’s favor. Judge Jennifer Thurston issued a final forfeiture order, confirming Nigeria’s superior interest in the funds. The court directed the US Customs and Border Protection to release the funds, along with accrued interest, within 60 days.
In 2021, Nigeria hired a US-based lawyer to push for the recovery of the funds. Despite initial resistance from the US government, Nigeria persisted. By June 2023, the Nigerian government filed a formal petition explaining that it was unaware of DCI’s lack of licensing. Following lengthy negotiations, the US government acknowledged Nigeria’s legal claim, paving the way for the court’s final ruling.
This case highlights longstanding issues in Nigeria’s defense procurement process. During the same period, South Africa seized $5.7 million of Nigerian funds intended for arms purchases due to similar licensing issues.
Further investigations revealed widespread corruption in the use of arms funds, with billions diverted to unauthorized purposes. An audit by Nigeria’s government in 2015 revealed that the then-National Security Adviser (NSA) misused $2 billion allocated for fighting Boko Haram. Many officials are still facing trial for their roles in these scandals.
This legal victory is a significant step for Nigeria in recovering lost funds and addressing irregularities in defense spending. While it underscores past challenges, it also marks progress in promoting accountability and ensuring funds are used as intended.
