US government returns $52 million in recovered assets linked to former Nigerian minister

The government of the United States of America (USA) has returned to Nigeria $52.88 million in recovered assets linked to the former Nigerian Minister of Petroleum Resources, Diezani Alison-Madueke, and her associates.

The Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, and the US Ambassador to Nigeria, Richard Mills Jr., on Friday signed an Asset Return Agreement between the two countries in Abuja.

Fagbemi said that the execution of the agreement “realizes the repatriation of approximately 52.88 million dollars”, which, according to him, resulted “from the confiscation of Galactica assets” linked to Ms. Alison-Madueke.

Projects committed to development projects

The Nigerian government said the agreement is being executed to ensure that the returned assets are applied directly to development projects – rural electrification and combating terrorism.

“As agreed, US$50 million of the repatriated funds will be used through the World Bank, to partially finance the Rural Electrification Project to increase the reliability and availability of renewable energy in Nigeria.

“While the balance of US$2.88 million will be disbursed as a grant by Nigeria to the International Institute of Justice (IIJ) to support the 'Rule of Law and Anti-Terrorism Project' through strengthening counter-terrorism capacity for professionals in the criminal justice in East, West and North Africa”, explained Fagbemi.

He said the projects will greatly improve growth and socio-economic development, adding that efforts have been made to ensure that the funds are utilized judiciously.

“Measures have also been put in place to ensure that the repatriated funds are not only disbursed but also used in a transparent and responsible manner by the World Bank and IIJ, with periodic reports being sent to Nigeria and the US on the implementation of the projects,” he he said.

“This robust framework will ensure that funds are effectively utilized for the full benefit of the Nigerian people, in line with the principles of UNCAC and the Global Forum on Asset Recovery (GFAR).”

Recovery battle

Attributing the success of the recovery to the “unwavering commitment” of both nations in combating corruption, Fagbemi thanked the US government “for its steadfast support and cooperation in this effort.”

“Your commitment to justice and the rule of law was instrumental in making this agreement a reality,” he told the United States Ambassador to Nigeria, MrMills, imploring the US to demonstrate the same gesture in “other pending repatriation cases, so that agreements relating to this matter can be concluded as quickly as possible, as Nigeria urgently needs these reimbursements.”

The minister also attributed the signing of the agreement to President Bola Tinubu’s mission to “build a Nigeria free from the shackles of corruption and ensure that available resources are dedicated to the socio-economic development of our nation”.

Multimillion-dollar offshore corruption

Ms. Alison-Madueke and businessmen Olajide Omokore and Kolawole Akanni were named in two civil cases seeking the confiscation of several luxury goods arising from corruption offenses that were laundered in and through the States.

“With the conclusion of the cases, the department recovered approximately $53.1 million in cash – constituting the net liquidated value of the defendant’s assets – plus a promissory note with a principal amount of $16 million,” the Department of US Justice in 2023.

According to investigations carried out by US authorities, from 2011 to 2015, Nigerian businessmen Kolawole Aluko and Olajide Omokore conspired with others to pay bribes to Nigeria's former Minister of Petroleum Resources, Ms. Alison-Madueke, who oversaw the company Nigeria's state oil company.

In return, Ms Alison-Madueke used her influence to direct lucrative oil contracts to companies owned by Messrs Aluko and Omokore.

The proceeds from these illicitly awarded contracts, totaling over $100 million, were then laundered into and through the United States and used to purchase various assets through shell companies, including luxury real estate in California and New York, as well as like Galactica Star, a 65-year-old company. metro super yacht. The properties were also used as collateral for loans to Mr Aluko and shell companies he controlled. As part of the forfeiture process, these lien holders were paid.

Former Minister Alison-Madueke, Mr Omokore and Mr Aluko were also subject to criminal trials in Nigeria for alleged corruption in the related oil industry.

Ms. Alison-Madueke, who left Nigeria at the end of her ministerial term on May 29, 2015, is believed to be in exile in the United Kingdom.

The American cases involving Ms Alison-Madueke, Mr Omokore and Mr Aluko were brought under the Kleptocracy Asset Recovery Initiative.

In 2015, the US Federal Bureau of Investigations (FBI) formed International Corruption Squads across the country to address the domestic and international implications of foreign corruption.

Ms. Alison-Madueke is the subject of confiscation proceedings and pending criminal charges in Nigeria.