The Federal Government said at the weekend that about $50 million assets repatriated from the United States of America would be used to support Rural Electrification Projects in the country.
The Attorney General of the Federation and Minister of Justice, Lateef Fagbemi (SAN), made the disclosure on Friday in Abuja, during the formal signing ceremony of the Asset Return Agreement between Nigeria and the USA.
He said the assets were linked to a former Petroleum Resources Minister, Mrs. Diezani Alison-Madueke, and her associates (the Galactica Assets).
Signing on behalf of Nigeria, Fagbemi observed that the deployment of the fund would increase the reliability and availability of renewable energy in Nigeria.
Besides, the minister described the signing of the agreement as a significant affirmation of the resolve of President Bola Tinubu to build a Nigeria that is free from the shackles of corruption, and to ensure available resources are devoted to socio-economic development of the nation.
He described the event as not only a testament to the unwavering commitment of the country’s fight against corruption, but also that of the U.S. in facilitating restitution and supporting integrity and accountability in governance.
The return of the seized fund should be an opportunity for the Federal Government of Nigeria to demonstrate utmost transparency in the utilization of the recovered assets.
The return of the recovered loot presents Nigeria a chance for existing legal frameworks that are mutually beneficial to the governments of the U.S. and Nigeria.
Corruption in Nigeria is massive. PwC Nigeria estimates that corruption in Nigeria could cost up to 37 per cent of GDP by 2030, if it’s not dealt with immediately. This cost was equated to around $1,000 per person in 2014 and nearly $2,000 per person by 2030.
Nigerians themselves view their country as one of the world’s most corrupt; it perennially ranks in the bottom quartile of Transparency International’s Corruption Perception Index.
The United Nations Office on Drugs and Crime speculated that close to $400 billion was stolen between 1960 and 1999. The late General Sani Abacha alone was estimated to have stolen the equivalent of 2 – 3 percent of the country’s GDP for every year that he was President.
Since his death in 1998, Abacha has remained in the news not only for the documented brutality of his regime, but also the seemingly never-ending efforts to repatriate funds alleged to have been stolen during his administration.
“The insistence by the U.S government on the preciseness and thoroughness of the projects that the most recent batch of repatriated funds would be expended on, no doubt shows a clear disaffection with how looted funds had been utilised in the past.”
On February 4, 2020, Nigeria reached an agreement with the United States of America and the British crown dependency of Jersey to repatriate more than $300 million in funds connected to the former Nigerian military ruler who ruled Nigeria between 1993 and 1998.
It is estimated that Abacha stole as much as $5 billion of public money during that time, doing vast harm to the Nigerian people. He was never charged with corruption during his life, and the nation has been fighting for years to recover the money.
The United States had insisted that the return of the funds will come with certain conditions regarding how they would be utilised. As announced, the funds must be tied to three major projects spread across the country’s recognised regions, namely; Lagos-Ibadan Express Road, Abuja-Kano Road, 2nd Niger Bridge (Eastern Region).
According to reports, the agreement of the return of the fund was preceded by negotiations touching on those who would manage the funds and a monitoring process for the administration of the funds. The agreement between the three entities further included the condition that, the projects on which the funds will be expended will be administered by the Nigeria Sovereign Investment Authority and independently audited.
The agreement established a framework based on fruitful co-operation, trust and respect so that the forfeited funds can be repatriated to benefit the people of Nigeria, from whom they had been taken. The use of the funds will be subject to monitoring and reporting obligations.
The United States and Nigeria’s other allies have every reason to be worried with respect to how repatriated funds are utilised.
Under the administration of former President Muhammadu Buhari, returned Abacha loot were expended in a manner devoid of accountability and scrupulousness.
Repatriation of stolen monies avails the Federal Government additional resources for development activities.
The challenge is to ensure efficient, accountable and transparent use of such assets, given the continued prevalence of corruption at various levels of government in the country as well as the incapacity and lack of political will by the government to deal with the expansive issues of corruption.
Transparency allows for better utilisation of recovered assets, and better targeting of resources into sectors that have potential to benefit the victims of corruption, who happen to be mostly the poor.
Lack of effective follow-up mechanisms would lead to the inappropriate allocation of resources into sectors that have little effect on alleviating poverty.
The insistence by the U.S government on the preciseness and thoroughness of the projects that the most recent batch of repatriated funds would be expended on, no doubt shows a clear disaffection with how looted funds had been utilised in the past.
It portrays a determination by both governments to ensure that the benefits of the looted assets get to the Nigerian people. It clearly shows a more empathetic interest in the well-being of Nigerians, that successive governments have not shown.
The Asset Return Agreement must ensure that the returned assets are applied directly to developmental projects.
As agreed, the $50 million assets repatriated from the United States of America must be utilized through the World Bank, to partly fund the Rural Electrification Project to increase the reliability and availability of renewable energy in Nigeria.
The balance of $2.88 million should be disbursed as a grant by Nigeria to the International Institute for Justice to support ‘the Rule of Law and Counter-Terrorism Project’, through counter-terrorism capacity building for Criminal Justice Sector Practitioners in East, West, and North Africa.
These projects will no doubt contribute in no small measure to creating the enabling environment for socio-economic growth and development.
The Federal Government must put measures in place to ensure that the repatriated funds are not only disbursed but also utilized transparently and accountably by the World Bank and International Institute of Justice with periodic reports to be forwarded to Nigeria and the US on the implementation of the projects.
The measures will guarantee that the funds are effectively used for the full benefit of the Nigerian people in line with UNCAC and the Global Forum on Asset Recovery principles.
We implore the U.S. government to continue to demonstrate the usual cooperation and understanding in other pending cases of repatriation, so that the agreements in relation thereto can be concluded as soon as possible, as Nigeria is in dire need of these refunds.
