Diezani Alison-Madueke: U.S. to Repatriate $52.88 Million in Forfeited Corruption Proceeds to Nigeria

The proceeds of corrupt dealings between Diezani Alison-Madueke and Kolawole Akanni Aluko, exceeding $100 million, were laundered through the United States

Diezani Alison-Madueke

The United States Department of Justice has finalized an agreement to return $52.88 million in forfeited assets to Nigeria linked to Diezani Alison-Madueke. The funds, seized as part of a corruption investigation involving the Nigerian oil sector, will be directed toward critical development and security projects in the country.

Background of the Case

The forfeited assets trace back to a bribery scheme orchestrated by Nigerian businessmen Kolawole Akanni Aluko and Olajide Omokore. Between 2011 and 2015, the duo collaborated with Nigeria’s former Petroleum Minister, Diezani Alison-Madueke, to secure lucrative oil contracts in exchange for financial and material inducements. The proceeds of these transactions, exceeding $100 million, were laundered through the United States. They were used to purchase luxury properties in California and New York, as well as a 65-meter superyacht, Galactica Star.

Allocation of Repatriated Funds

Under the terms of the agreement, the repatriated funds will be channeled into two key initiatives:

  1. Renewable Energy Access:
    • A total of $50 million will support the Distributed Access Through Renewable Energy Scale-Up project. This initiative, implemented by Nigeria’s Rural Electrification Agency, aims to expand access to electricity services through renewable energy solutions. The project is co-funded by the International Development Association and focuses on bridging Nigeria’s significant energy gap.
  2. Counter-Terrorism Capacity Building:
    • Approximately $2.88 million will be allocated to Nigeria’s contribution to the International Institute for Justice and the Rule of Law (IIJ). These funds will support training programs for criminal justice practitioners in countering terrorism financing and enforcing the IIJ’s Counter-Terrorism Academic Curriculum, with a particular focus on North, West, and East Africa.

Before Diezani Alison-Madueke, Switzerland Repatriated Abacha Loot

This repatriation echoes past recoveries of stolen assets, most notably the return of funds looted by Nigeria’s former dictator, Sani Abacha. Between 1993 and 1998, Abacha embezzled billions of dollars from Nigeria’s treasury, much of which was stashed in foreign accounts.

Switzerland has been at the forefront of repatriating the “Abacha loot,” returning over $1 billion to Nigeria in multiple tranches. Key transfers include:

  • 2005: The Swiss government returned $500 million in assets seized from accounts linked to Abacha.
  • 2017: Switzerland repatriated an additional $321 million to Nigeria, part of a broader commitment to ensure that the funds were used for developmental purposes. The return was contingent on a monitoring agreement with civil society organizations to prevent further mismanagement.
  • 2020: Another tranche of $308 million, also tied to Abacha’s corruption, was repatriated. This transfer was facilitated under a tripartite agreement between Nigeria, the United States, and Jersey.

The Abacha funds were earmarked for various projects, including road construction, social welfare programs, and infrastructure development. However, concerns over mismanagement and re-looting of recovered funds have remained a persistent challenge.

Bilateral Cooperation Against Corruption

Principal Deputy Assistant Attorney General Brent S. Wible highlighted the strong collaborative efforts between the U.S. and Nigeria, stating, “This agreement underscores the vital law enforcement partnership between our two nations and recognizes Nigeria’s critical assistance in securing the forfeiture of these corruption proceeds.”

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The repatriation is part of the U.S. Department of Justice’s Kleptocracy Asset Recovery Initiative, which aims to prevent the misuse of the U.S. financial system for laundering illicit wealth. The initiative has been instrumental in identifying, recovering, and returning assets acquired through foreign corruption.

Implications for Nigeria

The agreement signifies a step forward in the global fight against corruption and the equitable recovery of stolen assets. For Nigeria, these funds represent an opportunity to address systemic challenges, including inadequate energy infrastructure and counter-terrorism capacity, both of which are critical to national development and security. Drawing lessons from the Abacha loot, transparency and accountability will be critical to ensuring that these repatriated funds are utilized effectively.

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