Quick Read: The United States Department of Justice has announced a landmark agreement to transfer approximately $52.88 million in forfeited assets to the Federal Republic of Nigeria. This move acknowledges Nigeria’s vital assistance in a significant corruption investigation involving the country’s oil industry.
Strengthening International Law Enforcement Partnerships
“This agreement recognizes the close law enforcement relationship between the United States and Nigeria and Nigeria’s vital assistance that contributed to the successful forfeiture of millions of dollars of corruption proceeds,” stated Principal Deputy Assistant Attorney General Brent S. Wible. He emphasized the importance of international coordination in tracing and recovering illicit assets, underscoring the global commitment to combating corruption.
Assistant Director Chad Yarbrough of the FBI Criminal Investigative Division reiterated the FBI’s dedication to the global fight against corruption. “By ensuring these forfeited funds are repatriated to Nigeria to benefit the Nigerian people through critical projects and counterterrorism efforts, the FBI reaffirms our dedication to promoting transparency and dismantling the systems that enable corruption to thrive,” he said.
Chief Guy Ficco of IRS Criminal Investigation (IRS-CI) added that the Kleptocracy Asset Recovery Initiative plays a critical role in restoring stolen resources to affected nations. “IRS-CI is proud to partner with the global law enforcement community in this initiative to restore these vital resources to the projects and programs that promote Nigeria’s continued prosperity,” he noted.
Details of the Corruption Case
The assets were forfeited as part of an investigation led by the Kleptocracy Asset Recovery Initiative of the Justice Department’s Money Laundering and Asset Recovery Section (MLARS). From 2011 to 2015, Nigerian businessmen Kolawole Akanni Aluko and Olajide Omokore conspired with others to pay bribes to Nigeria’s former Minister for Petroleum Resources, Diezani Alison-Madueke. In exchange, Alison-Madueke used her influence to award lucrative oil contracts to companies owned by Aluko and Omokore.
Proceeds from this scheme, exceeding $100 million, were laundered through the United States and used to acquire luxury assets, including real estate in California and New York and a 65-meter superyacht named Galactica Star. These assets were eventually forfeited due to their connection to corruption, bribery, and money laundering.
Allocation of Forfeited Funds
Under the agreement signed in Abuja, Nigeria, by Attorney General of the Federation and Minister of Justice Lateef O. Fagbemi, SAN, and U.S. Ambassador to Nigeria Richard M. Mills Jr., the recovered funds will be allocated as follows:
- Electrification Projects: $50 million will be used to expand the Distributed Access Through Renewable Energy Scale-Up project. This initiative, funded in part by the International Development Association and implemented by the Nigerian Rural Electrification Agency, aims to enhance access to electricity in Nigeria through renewable energy solutions.
- Counterterrorism and Rule of Law Initiatives: Approximately $2.88 million will support Nigeria’s contribution to the International Institute for Justice and the Rule of Law (IIJ). These funds will bolster capacity-building for criminal justice practitioners, counter-terrorism financing, and the development of the Counter-Terrorism Academic Curriculum in regions across Africa.
Ensuring Transparency and Accountability
The agreement includes robust measures to ensure transparency and accountability in fund management:
- Funds dedicated to electrification projects will be managed through a World Bank trust fund, subject to auditing, oversight controls, and public reporting requirements.
- Counterterrorism and rule of law programs will undergo external audits and periodic progress reviews, with updates made publicly available.
Collaborative Efforts
This case highlights the collaborative efforts of the FBI, IRS-CI, and MLARS’ International Unit, with critical support from the Justice Department’s Office of International Affairs. The Justice Department’s international asset forfeiture sharing program continues to be a powerful tool in repatriating stolen assets and addressing the harm caused by corruption.
Through this agreement, the United States and Nigeria demonstrate their shared commitment to combating corruption and investing in initiatives that benefit the Nigerian people.
