The issue of whether sovereign states can be held liable for the contractual obligations of their constituent units is a complex and evolving area of international law. This question gains particular relevance in federal systems where regional governments or states possess significant autonomy, including the authority to enter into contracts with foreign entities. In such scenarios, delineating the boundary between the obligations of these sub-national units and the responsibility of the sovereign state itself presents a legal challenge. The case of Zhongshang Fucheng Industrial Investment Co. Ltd v The Federal Republic of Nigeria offers critical insight into this issue, especially following multiple court rulings across different jurisdictions that rejected Nigeria’s claim of sovereign immunity. After an arbitral award in favour of Zhongshang Fucheng, courts in France and England ordered the seizure of Nigerian state assets, including presidential jets and properties, as part of enforcement efforts. This paper will address these questions by exploring key legal principles, including state responsibility, the doctrine of state immunity, and the concept of attribution in international law. Additionally, it will examine the role of bilateral investment treaties (BITs) and the New York Convention in facilitating enforcement of arbitral awards across multiple jurisdictions.