The United States government is refusing plans by Nigerian government to hand over about $100 million allegedly stolen by former military dictator, Sanni Abacha to Kebbi state Governor Abubakar Bagudu
According to the U.S. Department of Justice (DoJ) Bagudu was involved in corruption with Abacha.
The DoJ also alleged that the Nigerian government is hindering U.S. efforts to recover allegedly laundered money it has traced to Bagudu.
The Buhari-led Nigerian government says a 17-year-old agreement entitles Bagudu to the funds and prevents Nigeria from assisting the U.S., according to recent filings from the District Court for the District of Columbia in Washington.
Neither Bagudu nor a spokesman for Attorney General Abubakar Malami responded to requests for comment.
The DoJ alleged in a Feb. 3 statement that Bagudu, was part of a network controlled by Abacha that “embezzled, misappropriated and extorted billions from the government of Nigeria.”
Despite the forfeiture action being initiated following a Nigerian state request in 2012, the Nigerian government says it can’t assist the U.S. because it’s bound by a settlement Bagudu reached with the administration of then-President Olusegun Obasanjo in 2003, according to the court filings.
Under the terms of that accord, which was approved by a U.K. court, Bagudu returned $163 million of allegedly laundered money to the Nigerian authorities, which in exchange dropped all outstanding civil and criminal claims against him “stemming from his involvement in government corruption,” according to a Dec. 23 memorandum opinion by District Judge John D. Bates in Washington D.C.
Bagudu returned to Nigeria after concluding the settlement and was elected as a senator in 2009. Six years later, he was elected as Kebbi’s governor.
After Bagudu successfully sued Nigeria for violating the 2003 settlement, the Buhari-led administration reached a new agreement with him in October 2018, according to the court filings.
That would result in the transfer of ownership of the investment portfolios, worth 141 million euros ($155 million) to the Nigerian state, which would then pay 98.5 million euros to Bagudu and his affiliates.
The Nigerian government submitted the 2018 deal to the U.K. court in September to support its application to unfreeze the assets so they can be sent to Nigeria.
Successive Nigerian governments have sought to recoup the money looted by Abacha, who died in office in 1998 and have so far repatriated more than $2 billion with the cooperation of other countries, according to U.S. court filings.
According to the Transparency International estimates looted funds by the late military dictator to be in the region of $5 billion.
Olufikayo Owoeye
