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Private prisons in U.S. tool for pursuing profit

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By Zhang Bolan, People’s Daily

In the recent nearly four decades, private prisons in the U.S. have been widely denounced and criticized by people from all walks of life for frequent scandals, including exploitation of labor, human rights violations, racial discrimination, and collusion between politicians and operators of private prisons.

Last year, UN human rights experts urged the U.S. to “eliminate all for-profit detention facilities”, saying that “detainees should not become units for profit,” according to an article published on the website of the UN.

In the 1980s, in an effort to ease the burdens on overcrowded public prisons, the U.S. government started to contract some companies to run private prisons and pay them for services. Over the past nearly 40 years, private prisons have expanded rapidly and formed a highly profitable industry and huge lobbying groups.

CoreCivic and the GEO Group, two major private prison operators and also listed companies in the U.S., own and operate more than 100 detention facilities across the country.

According to data released by the website of The Sentencing Project, a Washington-based advocacy group, in 2019, about 116,000 prisoners were held in private prisons in the U.S., representing 8 percent of the country’s total state and federal prison population. Meanwhile, more than 30 states were in partnership with companies running private prisons.

The primary goal of private prisons is to profit from anything they deal in. The profits of private prisons mainly come from government subsidies and forced prison labor, coupled with low operation costs.

There’s often a prison bed occupancy guarantee clause in the contracts between U.S. federal, state, and local governments and private prison operators, which stipulates that the government should guarantee a certain occupancy rate in prison beds; and if failing to reach the rate, it will need to pay compensations to private prison operators.

Meanwhile, to ensure the occupancy rate for their own profits, private prisons try to bribe judicial officials so that they will impose severe sentences for minor offences or extend the term of imprisonment.

An American documentary film titled “Kids for Cash” described a judicial scandal in the U.S. In the film, two former judges in Luzerne County, Pennsylvania, accepted several million U.S. dollars of kickbacks from private prison operators in exchange for giving heavy sentences to juveniles who committed minor offences in the absence of an attorney and sending thousands of juveniles to privately run prisons between 2003 and 2008.

Among those juveniles who were sent to private prisons, the youngest was only 10 years old, and many were first-time offenders who committed minor crimes such as petty theft.

A study conducted by the Washington State University found that private prisons lead to an average increase of 178 new prisoners per million population per year and longer sentences.

The length of sentences also increases when private prisons come into a state, especially in nonviolent crimes that have more leeway in sentencing guidelines, according to the study.

Private prison operators have made big gains from inmate services. According to reports of U.S. media, in 2020, CoreCivic generated $1.9 billion in revenue, 82.2 percent of which came from its private prison operations. In the same year, the revenue of the GEO group reached $2.3 billion.

Most private prisons in the U.S. are ill-equipped. They usually build their facilities to minimum standards required by contracts with governments, in a bid to reduce operating costs. Besides, private prisons are often understaffed and correctional officers there are of varying quality. Furthermore, some private prisons connive in gangsters and bullies “maintaining” order in prisons.

Due to various loopholes in the daily management and security measures, gang activities have been rampant in private prisons, which are also troubled by incidents of violence from time to time.

Data from the U.S. Department of Justice revealed that fight between inmates takes place 65 percent more frequently in private prisons than in public ones, and violent incidents and assaults on guards by inmates are 49 percent more frequent in private prisons than in government-run prisons.

Violence can fall on an inmate at any moment in private prisons in the U.S., according to a book titled “The American Trap”, which described the high incidence of violent incidents in private prisons in the U.S.

Conditions in the cell were deteriorating, and verbal arguments and physical aggression became increasingly frequent, said the book, which was written by Frédéric Pierucci, a former executive of French energy and transport giant Alstom. The management system of private prison was no less than modern slavery, he said.

Private prisons in the U.S. have turned prisoners into modern-day slaves. Private prisons have made criminal sentence become a “pernicious form of servitude” trapped in the service of endlessly increasing profit, the literal revenues of physical toil, suffering, and exploitation, said Laura Appleman, a professor with the College of Law, Willamette University, in her latest research paper titled “Bloody Lucre: Carceral Labor and Prison Profit”.

Inmates in private prisons are forced into high-intensity and long hours of work but are paid far less than the statutory minimum hourly wage in the country. Their basic human rights are hardly guaranteed.

American journalist Shane Bauer had been undercover as a prison guard at a private prison in Winnfield, Louisiana, for four months and wrote his experience in the prison into a book titled “American Prison: A Reporter’s Undercover Journey into the Business of Punishment”.

He exposed chaotic phenomena in the prison, including forced labor, exploitation, violence, maltreatment, and corruption.

In private prisons, inmates are regarded as labor machines and their expenses, such as food and clothing, are often squeezed. These prisons even ignore their needs for medical services and deliberately putting off sending them to the hospital even when they are critically ill, according to the book.

The book provided a penetrating exposé on the cruelty and mind-bending corruption of privately run prisons across the U.S., said a U.S. book review magazine, noting that nearly every page of this tale contains examples of shocking inhumanity.

“A terrifying look into one of America’s darkest and deepest ongoing embarrassments,” commented well-known U.S. literary website Literary Hub on the book.

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The Most Shocking A/Court ‘Judgment’ in Nigerian History: An unfortunate precedent that should not be allowed to stand

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The last is yet to be heard of wide ranging ex-parte orders as this time around, the charade has moved to the Court of Appeal, Lagos Division. In the case of FBN Quest & Another vs. Nestoil & Others, the Court of Appeal’s ex parte orders are not only egregious but a chilling sign of judicial capture, smacking of dirty practices at best and corruption at worst.

On Thursday, 27th November 2025, at exactly 2:00pm, Justice Yargata Nimpar delivered a ‘ruling ’ that appeared like a thief in the night, a ghost and unscheduled, the said decision came upon a Motion Ex-parte which was not heard not argued in open court, yet it surfaced, fully written, signed, stamped, and delivered as though it had lived a full life on the Court of Appeal docket.

For many Nigerians, the judiciary has again weathered the storms. Veterans of the legal system describe this episode as “a daylight heist… a judicial armed robbery without guns.”

The controversies over wide ranging ex-parte applications, it would seem, has found its way to the Court of appeal, an intermediate court with limited original jurisdiction as donated to it by statute.

In this instance, barely two weeks ago, we reported the ex-parte orders against NESTOIL and the other defendants listed in the suit before the Federal High Court which led to the transfer of the suit to another judge.

The said interim orders were vacated by effluxion of time, being that ex-parte orders last for only 14 days.

The court however ordered parties to maintain status quo and adjourned the Motion on Notice for hearing by the consent of the parties. That Motion is still pending before the Federal High Court.

It would seem that in order to frustrate that pending Motion, the Plaintiffs somehow filed a similar application to the Court of Appeal which was granted an order ex-parte directing the Lower Court not to take any further steps, including determining the pending application filed by Plaintiffs (now Appellants).

This magically resurrected, fast-tracked application seem to have been rubber-stamped at the fictional “Appeal Bench of Shadows,” as insiders have begun calling it.

A CASE THAT NEVER EXISTED — YET RECEIVED A JUDGMENT

Our Judiciary correspondent gathered that when the court’s official list for the day was released, nothing seemed amiss. No controversial cases. No unexpected hearings.

But somewhere inside the dusty chambers of bureaucracy, a secret file was already being prepared and by 2pm, a judgment carrying the signatures of an entire appeal panel had surfaced — even though none of them had appeared in open court and when the case itself had never been argued before any High Court, making an appellate ruling legally impossible.

By evening, whispers had turned into rumblings. Court workers who handled the mysterious document reported unusual instructions: No public sitting; No mention on the court list; No access to case filings; No digital record and No audio recording of proceedings. Yet an order was made retrospectively to undo a completed act! which is yet another impossibility in law, because the exparte order cannot restore what has been already executed.

“It was like dealing with a ghost file,” one clerk said. “It appeared from nowhere and disappeared into official archives as though it had always existed.”

This judgment, once delivered, spread like wildfire, with legal scholars calling it “a constitutional impossibility.” Veterans said they had never seen anything similar since the 1970s.

Enquiries from our judiciary correspondents indicate that an application can only be hinged upon a valid Notice of Appeal against a decision of a lower court before any application can be entertained at the Court of Appeal.

Further Investigations by our judiciary correspondent reveals that no such Notice of Appeal has been filed nor served on the respondents; no parties have been invited to Settle Records and no Records of Appeal have been transmitted.

One wonders the platform or upon which grounds the ex-parte order was made, observed one senior lawyer, especially as a similar pending application filed by the Appellants has been adjourned for Hearing by the Federal High Court.

Furthermore, the case at the trial court before Justice Osiagor has not been heard on its merits, which documents was placed before the appellate court and all applications before the judge has not been heard or is the court of appeal now a trial court.

A JUDICIARY AT A CROSSROADS

Public outrage rose quickly. Lawyers described the situation as “a hijacking of justice by shadowy interests.” Civil society groups demanded explanations.

A Judiciary where justice can be manufactured behind closed doors…a legal system where influence not merit, decides outcomes…and an institution tested by the weight of powerful external forces, et cetera should not be allowed to thrive.

AN ERA-DEFINING SCANDAL

This judgement will stand as one of the most dramatic challenges ever faced by Nigeria’s justice system. The shockwaves has rippled far beyond the courtroom — touching politics, business, security agencies, and public trust.

One thing is clear: This is the kind of judicial earthquake that rewrites history, shakes institutions, and forces a nation to confront the truths it fears the most. Our judicial correspondences were able to get an incline of the ex-parte orders made by the Court of Appeal as follows:

  1. AN ORDER of interim restorative injunction reversing all steps taken by the Respondents and/or persons purporting to act on the instructions of the Respondents and which steps or actions were taken pursuant to the order of the Federal High Court coram Osiagor, J made on the 20th day of November 2025 pending the hearing and determination of the Appellants’ Motion on Notice filed on the 26th day of November 2025.
  2. AN ORDER of interim injunction restraining the Respondents, their agents, servants, affiliates, and privies from interfering with and interrupting the Receiver/Manager in the performance of his duties pending the hearing and determination of the Appellants’ Motion on Notice filed on 26th November 2025.
  3. AN ORDER staying further proceedings at the lower court pending the hearing and determination of the Appellants’ Motion on Notice filed on the 26th November 2025.

A SHOCKING DEPARTURE FROM JUDICIAL NORMS

Therefore, the Lagos Court of Appeal’s decision to grant ex parte orders in FBN Quest & Another vs. Nestoil & Others stunned the legal community as ex-parte rulings are meant for rare emergencies and hardly exercised by appellate courts. By acting without hearing both sides, while the matter was already before the Federal High Court, the Court of Appeal has undermined the principle of natural justice and distorted its own role.

NIGERIAN IMAGE AT RISK

At a time when Nigeria is striving to reposition its global reputation, this case sends the wrong message. It portrays the country as one where courts can be hijacked by private interests, where fairness is discarded, and where corruption lurks behind judicial robes. For investors and international partners, it reinforces damaging stereotypes of weak institutions and compromised justice.

AN URGENT CALL FOR INVESTIGATION

These orders are not just irregular — they are evidence of judicial capture. They must be investigated urgently. The Chief Justice of Nigeria, the National Judicial Council, the President of the Court of Appeal and the Nigerian Bar Association cannot remain silent. If appellate courts become arenas for ex-parte adventures, Nigeria’s justice system risks collapse under the weight of manipulation.

CLOSING NOTE

The Court of Appeal’s conduct in FBN Quest & Another vs. Nestoil & Others is more than a misstep, it is a warning sign of judicial capture. If Nigeria is serious about restoring its image and strengthening democracy, this case must be investigated, accountability enforced, and reforms implemented. Anything less would be an abdication of the judiciary’s sacred duty to uphold justice. We must not allow that to happen.
A very Senior lawyer emphasize that the exparte order of the court of appeal lagos division in Nestoil has the possibility of eroding administrative control of Heads of superior Court from assigning or re assigning matters within their respective courts. Furthermore both the President of the Court of Appeal and the Chief Justice of Nigeria may not have the authority to disband a panel and re- constitute another panel over any matter in their respective courts. This decision is a total anarchy to the judiciary and urgent steps must be taken to vacate the strange Court of appeal exparte order.

The conduct of the court of appeal justices is not excusable anywhere in the world and it’s indeed has brought the court of Appeal justices who constituted the panel to ridicule

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Pius Akutah’s Alleged Fraud at Nigerian Shippers Council Uncovered

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Investigations by Nigerian Concord Newspaper reveal that the Executive Secretary of the Nigerian Shippers Council, Mr. Pius Akutah, has allegedly misappropriated public funds for a lavish lifestyle.

According to our findings, within months of assuming office, Akutah allegedly purchased a bulletproof SUV valued at approximately N850 million. In addition, he is reported to have acquired over twenty exotic SUVs for use as a convoy.

Akutah is also said to have acquired multiple high-value properties, including three in Abuja’s Maitama and Asokoro districts worth over N2 billion, and two in Lagos’ Banana Island valued at N1.8 billion. These acquisitions appear far beyond the scope of his official salary and allowances.

Further investigation suggests that Akutah may be using public funds to support political ambitions, including allegedly grooming militants across 23 local government areas in Benue State for a potential 2027 gubernatorial bid.

Staff of the Shippers Council reportedly claim that Akutah frequently accesses the council’s treasury without proper authorization. Some insiders have indicated that a petition will soon be filed with the EFCC, ICPC, and the Presidency to report his alleged misconduct.

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Pius Akutah’s Alleged Fraud at Nigerian Shippers Council Uncovered

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Investigations by Nigerian Concord Newspaper reveal that the Executive Secretary of the Nigerian Shippers Council, Mr. Pius Akutah, has allegedly misappropriated public funds for a lavish lifestyle.

According to our findings, within months of assuming office, Akutah allegedly purchased a bulletproof SUV valued at approximately N850 million. In addition, he is reported to have acquired over twenty exotic SUVs for use as a convoy.

Akutah is also said to have acquired multiple high-value properties, including three in Abuja’s Maitama and Asokoro districts worth over N2 billion, and two in Lagos’ Banana Island valued at N1.8 billion. These acquisitions appear far beyond the scope of his official salary and allowances.

Further investigation suggests that Akutah may be using public funds to support political ambitions, including allegedly grooming militants across 23 local government areas in Benue State for a potential 2027 gubernatorial bid.

Staff of the Shippers Council reportedly claim that Akutah frequently accesses the council’s treasury without proper authorization. Some insiders have indicated that a petition will soon be filed with the EFCC, ICPC, and the Presidency to report his alleged misconduct.

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