US returns $52.88m in looted Funds to Nigeria

The United States has formally agreed with Nigeria to transfer $52.88 million in forfeited corruption proceeds, underscoring the nations' collaborative efforts to combat corruption and promote development.

The funds, seized during investigations into corrupt practices in the Nigerian oil industry, will benefit the Nigerian people through critical electrification projects and counterterrorism initiatives.

Principal Deputy Assistant Attorney General Brent S. Wible described the agreement as a testament to the robust law enforcement relationship between the two nations.

“Our coordination with international partners ensures corrupt actors have fewer places to hide their illicit gains,” he said.

Wible also highlighted the allocation of nearly $53 million to projects addressing corruption’s harms while bolstering global anti-terrorism efforts.

Diezani saga

The funds were forfeited following a probe by the Kleptocracy Asset Recovery Initiative. Between 2011 and 2015, Nigerian businessmen Kolawole Akanni Aluko and Olajide Omokore paid bribes to secure lucrative oil contracts in collusion with former Petroleum Minister Diezani Alison-Madueke.

The proceeds—exceeding $100 million—were laundered in the US to acquire luxury real estate and assets, including a superyacht.

The repatriation agreement, signed in Abuja by Nigeria’s Attorney General Lateef O. Fagbemi and US Ambassador Richard M. Mills Jr., allocates $50 million to expand Nigeria’s Distributed Access Through Renewable Energy Scale-Up project.

This initiative, supported by the International Development Association, aims to enhance renewable energy access across Nigeria.

An additional $2.88 million will bolster Nigeria’s contributions to the International Institute for Justice and the Rule of Law (IIJ), supporting African counterterrorism and judicial capacity-building.

IRS Criminal Investigation Chief Guy Ficco commended the partnership’s success in returning assets for public benefit, while FBI Assistant Director Chad Yarbrough reaffirmed their commitment to dismantling corruption systems.

“By repatriating these funds for vital projects, we champion transparency and Nigeria’s prosperity,” Yarbrough stated.

The agreement mandates that funds for electrification be managed under World Bank oversight, with stringent auditing and reporting standards to ensure accountability. 

Similarly, IIJ programs will undergo periodic progress reviews and public reporting to safeguard transparency.

This collaboration highlights the power of international asset forfeiture to address the damages caused by corruption and foster economic and social development in affected nations.