Nigeria is teetering on the brink of a substantial financial loss as the country faces the impending risk of forfeiting up to $21 million in foreign assets held with global financial behemoth JP Morgan.
The precarious situation stems from the filing of a withdrawal notice for the mentioned sum, linked to a United Kingdom (UK) judgment debt against Nigeria. This development follows the rejection of Nigeria’s appeal against a five-year-old judgment, posing potential repercussions for the nation’s financial standing.
The withdrawal notice, a critical juncture in this legal saga, comes on the heels of a British court’s ruling in favor of Emovbira Williams. A British-Nigerian citizen, Williams had initiated legal proceedings against the Nigerian government, alleging fraud and abuse during a collapsed business deal.
In 2018, Justice Mary Clare Moulder delivered a ruling ordering Nigeria to pay Williams $6.5 million, with an additional 9 percent interest accruing over the past five years.
Despite Nigeria’s appeal, a British court on December 19, 2023, dismissed the case, deeming it incompetent and lacking merit. Justice Robert Bright, presiding over the matter, upheld the previous ruling, granting Williams access to $21 million and approximately £20,000 from Nigeria’s central bank account with JP Morgan.
In response, Nigeria engaged the services of the law firm Brown Gavalas & Fromm LLP and other legal representatives to challenge the withdrawal on procedural grounds. The legal teams have concluded their filings, and the court is poised to deliver a final decision imminently.
The origin of Nigeria’s legal entanglement traces back to the late 1980s when a business deal with Emovbira Williams unraveled, leading to his imprisonment. Williams, who had guaranteed a payment of $6.5 million in 1986 for the importation of foodstuffs, accused the Nigerian government of reneging on the deal, resulting in his arrest, trial, and subsequent imprisonment.
Despite Williams’ escape from Nigerian prison in 1989 and a presidential pardon in 1993, Nigeria’s Central Bank withheld the compensation funds for an extended period. The protracted legal battle escalated to the Queen’s Bench Division of the High Court of Justice, culminating in the recent ruling that favored Williams.
With the UK court dismissing Nigeria’s immunity plea, Williams is now poised to proceed with the withdrawal of $21 million from Nigeria’s account with JP Morgan. This development marks a potential financial setback for the country, highlighting the intricate legal intricacies and the urgent need for a last-minute intervention to safeguard Nigeria’s foreign assets.
The court’s imminent decision holds the key to determining the outcome of this high-stakes legal battle.