The United States will turn over to Nigeria $23 million stolen by former military ruler Sani Abacha, but on the condition that the funds must not be re-looted.
The US officials on Tuesday signed an agreement on the terms and conditions for return of the cash cache, according to a report by AP.
Nigeria has reached several agreements to return stolen cash in recent years. Abacha ruled Africa’s most populous nation and top oil exporter from 1993 until his death in 1998, during which time Transparency International estimated that he took up to $5 billion of public money. He was never charged.
U.S. Ambassador Mary Beth Leonard said the cash was in UK accounts but was identified and frozen by U.S. officials. She added that including the latest deal, the United States had agreed to repatriate more than $334.7 million linked to Abacha.
Attorney General Abubakar Malami said the funds would be used for infrastructure projects, including the Abuja-Kano road, the Lagos-Ibadan Expressway and the second Niger bridge under the supervision of the Nigerian Sovereign Investment Authority (NSIA).
“The president’s mandate to my office is to ensure that all international recoveries are transparently invested and monitored by civil society organizations to compete for these three projects within the agreed timeline,” Malami.
The U.S. Justice Department has previously said that Nigeria must use money repatriated from funds looted by Abacha on agreed public projects or be forced to “replace” it
Earlier, the U.S. Justice Department had said Nigeria had agreed to the terms that government must use money repatriated from funds looted by General Abacha on agreed public projects or be forced to “replace” it.
The United States and the British dependency of Jersey agreed with the Nigerian government in Febuary to return $300 million that Abacha, who died in 1998, had stashed in their banks. Nigeria has pledged to use it to develop road infrastructure.
The U.S. Justice Department outlined the so-called “claw back” provison in a response to a query from a powerful U.S. senator questioning the prudence of returning the cash.
“Should any of the parties — including the United States —conclude that any of the returned funds had been used for an ineligible expenditure, a “claw-back” provision would then obligate the FRN (Nigeria) to replace fully any such improperly diverted monies,” the letter said.
It did not specify how and to whom, the money would be “replaced”.
The provision is notable as Nigeria continues efforts to repatriate money allegedly stolen during Abacha’s tenure leading Nigeria, Africa’s biggest oil producer, from 1993 until his death in 1998.
Corruption watchdog Transparency International estimates he stole as much as $5 billion of public money during that time. Abacha was never charged with corruption during his lifetime, and died in office.
A spokesman for Nigerian Attorney General Abubakar Malami said the government under President Muhammadu Buhari had a history of “prudent and transparent utilisation of recovered assets,” and that the money would be used as outlined in the agreement.
“The Federal Government does not in any way contemplate of doing otherwise,” spokesman Umar Jibrilu Gwandu said.
