Looted funds and Nigeria’s public accountability gaps

Nigeria grapples with economic distress, desperately needing funds for obligations, yet ironically experiencing a windfall. Notably, $332.4 million from Abacha loots and €6,324,627 recovered globally, according to former Justice Minister Abubakar Malami.

The latest $8.9 million, sourced from unknown individuals in Jersey, represents alleged ill-gotten gains from corrupted arms purchase contracts in 2014. Nigeria’s silent heist involves embezzlement by trusted officials, bleeding public funds through deceit and diverting promises, leaving the nation impoverished.

The dance of corruption unfolds not with masks and guns but with pens, robbing the nation’s future.

These alleged looted funds, though were never declared missing before being recovered now, raise a lot of fundamental questions and concerns about our public finance management and accounting systems. To the best of my knowledge, our government has never declared any funds missing, our auditors never raised any red flags about some money that cannot be traced, and nobody has been prosecuted on account of public funds traced to foreign countries.

The dance of corruption unfolds not with masks and guns but with pens, robbing the nation’s future.

Since there is no justification for this kind of unaccounted fund that escaped our public finance gatekeepers and National Assembly oversight, the proper inferences to draw are; whether there is a failure of our public finance management system, official fraud, or we are simply a criminal enterprise posing as a responsible Sovereign.

This issue is not peculiar to Nigeria though. The United States, the bastion of democracy and policeman of transparency, once invited Ernst and Young to audit the Pentagon as its Department of Defence is called. The auditor, mid-way into the exercise, concluded that the financial records of the Pentagon were riddled with irregularities to the extent that a reliable audit was simply impossible. However, the US case is a different context; some funds were untraceable, leading to significant changes.

The Nigerian case is hard to understand. Almost all recovered looted funds can be traced to government officials under the guise of legitimate transactions but end up in private accounts abroad. Yet nobody is punished, not even the civil servants who are the enablers and the contractors who serve as conduits are called to account.

Each time news of the discovery or recovery of looted funds breaks, we are happy. However, the painful realisation that each recovered loot speaks to the gaps in our governance accounting and audit reporting system is yet to dawn on us. The brazenness with which government actors loot public funds, inspired by the conviction that there will be no consequences, erases any hope of a pause in official corruption.

Lack of effective internal control, non-tracking of financial transactions, absence of proper and regular audit trails, and weak oversight have combined to rub us of any sense of financial discipline and responsibility. This explains why no alarm or red flag is ever raised about the misuse of public funds. The criminal prosecution of the immediate past Accountant General of the country, whose office administered the state treasury, for alleged fraud depicts the depth into which we sank in official corruption.

It ought to concern our government that it is the vigilance of other nations’ financial systems that has helped in the recovery of vast sums of looted funds from Nigeria. There is an urgent need to bring our financial systems surveillance in line with international best practices.

Public fund theft in Nigeria, like elsewhere, hampers national progress and undermines the dreams of the people. It extends beyond economic crime, affecting education, healthcare, and infrastructure. Corruption shadows the nation’s prospects, leaving the populace to bear the consequences. United opposition to this theft is crucial to safeguard the collective future and opportunities for every Nigerian.

Nigerian citizens who are supposed to be victims of looted funds are either indifferent or complicit by default. Citizens’ activism and demand for accountability on institutions and government officials and a more open government is almost non-existent. Tolerance for corrupt government officials is relatively high for various reasons.

Theft of public funds and failure of governance are serious issues that can have significant consequences for a society. Addressing the theft of public funds and failure of governance requires a holistic approach that involves legal, institutional, and societal changes. It is an ongoing process requiring sustained efforts from domestic and international stakeholders.

To prevent continuous looting of public funds and halt the re-stealing of recovered funds from abroad, an overhaul of financial management systems is imperative. Embracing digital technologies, adopting e-governance initiatives, and minimising manual handling of funds will enhance transparency, and efficiency, and reduce corruption opportunities in public service delivery.

We must strengthen our anti-corruption institutions, such as the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC). These institutions must ensure that existing anti-corruption laws are rigorously enforced. This includes prosecuting individuals involved in corrupt practices regardless of their status or influence.

Halting public fund theft requires strong political will from top government levels. Leaders must exemplify integrity and accountability, fostering a transparent government culture. Strengthening internal and external auditing processes is vital for a thorough examination of government expenditures, and independent audit bodies play a crucial role in identifying irregularities and holding officials accountable.

The government must establish effective mechanisms to recover stolen assets domestically and continuously through international cooperation. This includes cooperation and collaboration with the international community, international institutions, and other countries to trace and repatriate funds from abroad, share best practices, receive technical assistance, and coordinate efforts against transnational corruption.

We must adopt a multi-dimensional and multi-stakeholder engagement approach to make any meaningful improvement in tackling public funds theft. Civil society organisations, the media, and the public must actively monitor government activities and expose corrupt practices. This can help create a checks-and-balances system. Citizen activism, advocacy, and public awareness campaigns can help shed light on corrupt practices and push for necessary reforms.

The return of looted funds is not just a financial recovery but a wake-up call to take necessary steps towards rebuilding Nigeria’s integrity, public sector financial control mechanism, audit reforms and securing a brighter future for all Nigerians.

As looted funds find their way back to Nigeria, it is a testament to the global commitment against corruption. We must ensure these resources are invested in projects that benefit the people and strengthen the nation.

Repatriation Of looted funds is more than a legal process; it is a moral imperative. Nigerians are watching and will hold the government accountable for using these funds.