The United States Supreme Court has dismissed the Nigerian government’s case against Chinese investors, Zhongshan, effectively concluding a lengthy legal dispute concerning a $70 million arbitral award linked to a failed free trade zone project in Ogun State.
The dismissal follows a joint motion filed by both parties — President Bola Tinubu’s administration and the Chinese firm — in late March, requesting the withdrawal of Nigeria’s petition for a writ of certiorari, which sought a review of a lower court ruling, as reported by Peoples Gazette.
“Pursuant to Supreme Court Rule 46.1, all parties stipulate that the petition for a writ of certiorari in this case be dismissed,” stated court filings dated April 9.
“No fees are due to the clerk, and each party will bear its own costs.”
The dispute originated from a failed investment agreement between Zhongshan Fucheng Industrial Investment Co. Ltd and the Ogun State government during the tenure of former Governor Ibikunle Amosun. The Chinese company had undertaken a project to develop a free trade zone, but the initiative faltered amidst allegations of contract violations and expropriation by Nigerian authorities.
Following arbitration proceedings, Zhongshan was granted a $70 million award by a foreign tribunal. Nigeria subsequently challenged the enforcement of this award in U.S. courts, citing its sovereign immunity as a defence. However, lower U.S. courts upheld the validity of the arbitral decision, rejecting Nigeria’s arguments.
After a series of setbacks, the Nigerian government escalated its case to the Supreme Court in November 2024, aiming to overturn the judgment by invoking principles of international sovereignty.
Initially, the U.S. Supreme Court requested Zhongshan to respond to Nigeria’s certiorari request by January 27, 2025. The investors sought additional time, citing scheduling conflicts for their legal team. In an unexpected turn, both parties opted to conclude the case voluntarily.
The Supreme Court approved the joint motion to withdraw on April 9, effectively removing the case from its docket. “The parties, therefore, respectfully request that the court dismiss the petition for a writ of certiorari,” read the agreement signed by both legal teams.
