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Be Ready To “Replace” Returned $300m Abacha Loot If Misused, US Tells Nigerian Govt

Valentine Chinyem

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The United States Government on Monday warned the Nigerian government to be ready to “replace” the $300m General Sani Abacha loot it returned, if they misuse the funds.

According to the U.S. Justice Department, the repatriated funds must be used for the agreed public projects highlighted in the agreement it signed with its Nigerian counterpart.

The United States and the British dependency of Jersey agreed with the Nigerian Government in February to return the $300m Abacha loot, according to Reuters.

The U.S. Justice Department outlined the so-called “claw back” provision in a response to a query from a powerful American senator questioning the prudence of returning the cash.

“Should any of the parties — including the United States —conclude that any of the returned funds had been used for an ineligible expenditure, a “claw-back” provision would then obligate the FRN (Nigeria) to replace fully any such improperly diverted monies,” the letter said.