United States District Court Southern District of New York, has given one Louis Emovbira Williams, a Nigerian businessman, the authorisation to withdraw $21 million from Nigeria’s bank account with JP Morgan, used to stash funds from crude oil sales to foreign entities.

Bola Tinubu

Justice Liman Lewis, in August, denied Nigeria’s motion to dismiss the complaint filed by Mr Williams, who was scammed by the Nigerian government over a food importation business deal that cost him millions of dollars in 1986.

People’s Gazette reported that not only was Mr Williams swindled of $6.5 million by the Nigerian government, he said he was also tortured by the SSS and tried for “economic sabotage” after he returned to Nigeria from the UK to retrieve the funds. He was sentenced to 10 years imprisonment in 1986 but left prison in 1989, having languished in jail for three years.

He got a presidential pardon from Ibrahim Babangida, then military head of statein August 1993 and a “Fidelity Guarantee and Abiding Memorandum of Understanding of Assurance” for him to be paid approximately $6.5 million at 17 per cent compound interest on a rollover basis since 1986 and N5 million including a 25 per cent compound interest.

However, the payment didn’t come. CBN’s unwillingness to pay the lump sum left the matter unresolved for decades until Nigeria returned to civilian rule and prompted Mr Williams to file a suit at the UK court, where the West African nation was ordered to refund the businessman with compensation.

In 2018, Justice Mary Clare Moulder of the Queen’s Bench Division of the High Court of Justice in UK okayed the seizure of $21,231,960.74 and £19,763.130 from the Central Bank of Nigeria’s account domiciled in JP Morgan.

The defendants include the federal government, the attorney general of the federation, CBN, JP Morgan & Co. and other parties who have yet to be named in the suit.

Having obtained a court order authorising him to seize millions of dollars from Nigeria’s account with JP Morgan, the businessman argued his entitlement to the funds before the Supreme Court of the State of New York.

But CBN requested that the suit be transferred from the Supreme Court to a lower court where Nigeria can plead sovereignty.

There, Nigeria argued it had sovereign immunity, which made it impervious to the UK court order in that a sovereign state cannot subject itself to the orders of other nations.

But Mr Liman of the U.S. District Court of New York court dismissed Nigeria’s argument and held that the West African nation had already waived its sovereign immunity per the terms of the Fidelity Guarantee issued to Mr Williams in 1993.

“Therefore for the avoidance of doubt, both the Nigerian State and CBN must be deemed to have waived any immunity from levying of execution on amount kept in the name of CBN or State of Nigeria or any institution of Nigeria (save diplomatic) to the extent to which any amount in [paragraph] (14) above remains unpaid,” stated the 1993 Fidelity Guarantee that the Nigerian government issued to Mr Williams.

“Neither the Nigerian State nor the CBN shall raise or invoke any defences so as to deprive Dr Williams of his monies in [paragraph] (14) above or make it financially onerous and burdensome such as requiring Dr Williams to suffer,” the Guarantee added.

Mr Liman determined that Nigeria could not turn around to contend for sovereign immunity, which had already been waived in the Guarantee.

“Accordingly, the Fidelity Guarantee reflects a waiver of sovereign immunity for any proceeding in any court to recognise and enforce a judgement pertaining to Plaintiff’s seized funds,” the U.S. judge stated on August 12.

But the Nigerian government, reluctant to part with its cash asset, already sought to appeal the ruling at the Second Circuit in New York as records have been transmitted to the appellate court where the arguments will again be re-examined and redetermined.

Nigeria has already lost on a similar ground from another court of appeals in the U.S., the one in the District of Columbia in Washington D.C., which ruled in favour of Zhongshan Chinese investors to seize Nigerian assets abroad over a botched free trade zone deal.

The appellate decision in the Chinese case in the District of Columbia Circuit is not binding on the courts under the Second Circuit, where New York falls.

The case adds to the mounting list of litigations that sully Nigeria’s reputation among its international counterparts as courts in France, UK and Canada have similarly given orders greenlighting the confiscation of Nigerian assets abroad.

Mr Williams said the funds, when recovered, would be used to improve children’s health and education in Nigeria.

The Naira, Nigeria’s currency, has been ranked among the 10 worst-performing currencies in the world, according to a report by Bloomberg.

The report outlined that five of the worst-performing currencies globally are from Africa, including the Zambian kwacha, Angolan kwanza, and the naira.

Meanwhile, the sharp drop in the performance of African currencies has been attributed to several factors, including economic challenges, unstable commodity prices, inflationary pressures, and a lack of dollar liquidity.

The report noted that many African economies, heavily reliant on oil exports, are particularly vulnerable to drops in oil prices.

Keonethebe Bosigo, portfolio manager at Mazi Asset Management, stated that while oil prices are a significant factor, the real issue lies in poor currency management and economic imbalances. He explained that for the naira, the problem stemmed from not allowing it to adjust, which led to overvaluation and a subsequent loss of confidence in the currency.

Irmgard Erasmus, an economist at Oxford Economics, also weighed in on the naira’s struggles, citing ongoing issues with liquidity and dollar supply.

Despite reforms geared towards liberalizing Nigeria’s current account following the election of President Tinubu in 2023, the currency continues to face phenomenal pressure.

“The naira remains undervalued relative to its long-term neutral value due to ongoing issues around liquidity and dollar supply,” said Erasmus.

The economic expert added that while declining Brent crude prices have worsened the situation, improvements in dollar liquidity could potentially aid in the naira’s recovery over time.

Erasmus also stated that the naira should be trading around N1,100 per dollar in the absence of distortions, compared to its recent close of N1,544/$.

However, he warned that without major policy reforms and better dollar supply, the outlook for the naira remains uncertain.

NOVA Bank has announced the appointment of David Isiavwe as executive director, Operations and Information Technology, and Chinwe Iloghalu as executive director, Institutional and Commercial Banking.

These appointments are part of NOVA Bank’s plan to strengthen its leadership team as the Bank continues its innovative journey, following its recent transition to a national commercial bank.

In a statement issued by the bank, it stated that “Isiavwe has over 30 years of banking experience in domestic and international banks. With a Ph.D. in Accounting. Isiavwe is a Fellow of the Institute of Chartered Accountants of Nigeria (FCA) and Fellow Compliance Institute of Nigeria (FCIN) in addition to other professional certifications such as Certified Information Systems Security Professional (CISSP), Certified Information Security Manager (CISM), Certified Governance of Enterprise IT (CGEIT), Certified Information System Auditor (CISA), Certified Data Privacy Solutions Engineer (CDPSE) amongst others.”

According to the statement: “He has attended leadership programmes in some major global institutions such as Harvard Business School, MIT and Oxford University. He currently serves as the President and Chairman of the Board of Trustees for the Information Security Society of Africa, Nigeria (ISSAN), and holds a position on the Governing Council of the Fintech Association of Nigeria. Additionally, he chairs the Statutory Audit Committee of Nigeria Inter-Bank Settlement System Plc (NIBSS). His appointment underscores NOVA’s focus on digital transformation, with his vast experience playing a crucial role in advancing the Bank’s technology-driven phygital model.”

It also said that Chinwe Iloghalu, with close to 30 years of experience in the banking industry, joins as executive director for Corporate and Commercial Banking, the key business and relationship management engine of the bank.

“Throughout her distinguished career, she has made significant contributions in business and corporate banking, with expertise spanning sectors such as energy, corporate, commercial and digital banking, where she has consistently created sustainable value and returns for key stakeholders.

“Holding an MSc in Media and Communications, along with an MBA, Chinwe is a Fellow of the Institute of Credit Administration (FICA). She has attended leadership and executive programs in key institutions such as Said Business School Oxford, Harvard Business School, Wharton amongst others. Her role will be central to enhancing NOVA’s commercial banking rollout across all key business development segments.

“Phillips Oduoza, chairman of NOVA Bank, commented on the appointments: “The addition of Dr. Isiavwe and Mrs. Iloghalu marks a critical point in constituting the management team that will lead NOVA into its next phase of growth. David’s expertise in technology will be key in enhancing our phygital model, while Chinwe’s strong business drive and relationship management coupled with the retail and product engine of the bank will be instrumental in driving the Bank’s strategic intent to become a formidable player in the banking industry,” the bank said.

The bank further said that the new appointees’ deep understanding of digital and electronic banking would significantly contribute to its trademarked phygital experience, “which seamlessly combines the best of in-person service and bespoke digital solutions to serve our customers. Both leaders bring valuable experience that aligns perfectly with NOVA’s vision to be Africa’s preferred financial solutions provider.”

It added that “These two appointments will further diversify the board and bring about inclusiveness noted by Mr. Oduoza.”

The statement explained that “As NOVA Bank continues its expansion and transformation into a national commercial bank, these leadership appointments highlight its commitment to delivering innovative financial services. The Bank’s phygital model, combining cutting-edge technology with a physical presence, is redefining customer experiences and setting the stage for future advancements in the Nigerian banking landscape.”