Nigeria’s battle against the stashing of stolen public funds abroad received a boost last week following the signing of a Memorandum of Understanding (MoU) between the Federal Government and the United Kingdom. The MoU covers the modalities for the return of stolen assets. The signing of the document is a follow-up to the agreement between both countries at the London anti-graft summit in May.
We heartily welcome this deal. It is a good step towards dismantling safe havens for public funds looted from Nigeria. The Attorney General and Minister of Justice, Mr. Abubakar Malami, signed on behalf of Nigeria, while the British Minister of State for Immigration, Mr. Robert Goodwill, endorsed the pact on behalf of the UK government. The pact, which was signed at the Ministry of Justice, provides the mechanism through which looted funds would be returned to Nigeria.
We are delighted by the assurance given by the British government, through Mr. Goodwill, that the UK would no longer be a safe haven for stolen assets. He stated that the ability of the UK government to “recover and return stolen assets should send a clear message to all who may seek to harbor such assets that there is no safe haven” for looters in the UK.
The British Minister also expressed the commitment of his country to returning all stolen funds in its jurisdiction as soon as all the necessary legal processes are completed. Part of the provisions outlined at the London summit include the taking of steps to accelerate the procedures for identification and confiscation of illegally-acquired assets.
In addition, the summit provided that 40 jurisdictions, including British Overseas territories and Crown Dependencies, would automatically share beneficial ownership information relating to companies, trusts, foundations and other relevant entities and legal arrangements.
The MoU also demands that Nigeria and UK recognise that they have a mutual interest in ensuring that returned assets are not at risk of being misappropriated again, and that both countries recognise that they have obligations towards their own citizens for providing such assurance. This is in addition to both countries recognising and ensuring that the highest possible standard of transparency and accountability are applied for the return of stolen assets.
We urge the governments of both countries to demonstrate utmost good faith and sincerity of purpose to ensure that this MoU works. The effectiveness of the MoU will make other countries warehousing stolen funds from Nigeria to replicate the Nigeria/UK deal in their domains.
While we commend the Federal Government for signing this MoU with UK, it is necessary to say that we need more of such pacts with other countries to tackle illicit financial outflows and dismantle all safe havens for our looted public funds. This has become necessary as emerging trends in the global financial system have predisposed financial institutions to abuse. This calls for greater vigilance.
The Global Financial Integrity Group based in Washington DC, USA, has said that Nigeria has become one of the ten largest countries for illicit financial flows in the world. According to the report, about $15.7bn (about N6 trillion) illicit funds go through Nigeria’s banking system annually. This is scandalous. The problem is reportedly largely traceable to money laundering, terrorism financing, illicit drug trade and oil theft. Nigeria also reportedly lost a total of $140 billion to illicit financial flows between 2002 and 2011.
Therefore, the Nigeria/UK deal on return of looted assets should be seen as an ambitious effort to put all relevant processes in place to stop treasury looters. It, however, requires the cooperation of all countries. They need to strengthen their mechanisms for dismantling safe havens for the proceeds of corruption. We must, however, add that Nigeria can only get the support of other countries and global anti-graft agencies when she is seen to be serious about the effort to bring corrupt persons to justice.
It will be recalled that President Muhammadu Buhari had last year, in his address to the 70th General Assembly of the United Nations in New York, USA, urged world leaders to strengthen mechanisms for dismantling safe havens for proceeds of corruption. He charged them to do more to return stolen funds and assets to their countries of origin.
Tough legislations that can discourage the movement of stolen funds from one country to the other have become expedient. It must be stressed that Britain, by keeping looted funds in its jurisdiction, is in breach of British law, specifically Section 22(1) of the Theft Act 1968, which is still in force.
Nonetheless, it is good that the British government is set to end this illegality through the MoU it signed with Nigeria. The agreement has far-reaching implications for the restoration of public confidence in the Nigerian economy. We look forward to the full enforcement of the provisions of this deal.
able children. We call on all Nigerians to cooperate with the government to ensure that polio is finally eradicated from the country.