Connect with us

Business

After The Recovered Loots, What Next?

Published

on

Money laundering is a
global phenomenon that is not restricted to Nigeria. It is more prevalent where there is systemic failure, bad governance and poor value orientation.
This accounts for the reason President Muhammadu Buhari and 59 other world leaders agreed to sign a pact on the sanctions to be imposed on corrupt political and public office holders.
The agreement which is expected to be signed in United Kingdom will among other things, check the high rate of looting and money laundering around the world 60 countries are involved in the deal.
The Attorney-General of the Federation and Minister of Justice, Mallam Abubakar Malami (SAN), who spoke to journalists about the agreement, said some of the sanctions include travel restriction or denial of entry visa into the 60 countries, rejection of request for political asylum by corrupt political and public office holders, likely loss of citizenship while culprit will not be allowed to operate foreign accounts in any of the 60 nations.
The justice minister said the agreement would make it difficult for those stealing public funds in the country to escape abroad or operate slush accounts.
“The administration of President Muhammadu Buhari is stepping up the fight against corruption. I am happy to bring to your notice that Nigeria and 59 other countries will enter into an agreement in May on the imposition of international sanctions against corrupt political and public office holders. This will take place at the 2016 international summit on anti-corruption in the UK. At the May summit, these 60 countries will agree on some sanctions against those who steal public funds or launder money”, Malami said.
According to him, “the affected countries will also design ways of sharing intelligence on corrupt officers and money launderers. We will all key into this understanding as part of the global action against corruption. With this development, there is no hiding place for any public office holder who steals funds in this country.
Malami also noted that Nigeria is being considered as the 2017 host of the international summit on anti-corruption.
As a measure to put an end to this hydra-headed menace called money laundering in the country, the Nigeria police sometimes ago indicted a former governor of Kwara State (name withheld) and some of his associates for money laundering and consequently recommended their prosecution.
In a report of its Special Fraud Unit (SFU) investigation into a petition dated September 11, 2011, addressed to the Inspector-General of Police, Joy Petroleum Limited alleged illegal withdrawal from its accounts by the then Intercontinental Bank Plc. The police found that the former governor and another person conspired to breach the money laundering Act.
In an interview with The Tide, a printer, Mr George Griffin, said that as Nigeria intensifies efforts at recovering all monies looted in the past, the government should not lose sight of the fact that there are some others in the present government who had been in one way or another involved in money laundering, , adding that no one should be spared or seen as a sacred cow in the money recovery exercise.”
According to him, it is regrettable that in spite of the various legislations against corruption in the country, it still persists as the legislations seen not to be helping the issues. There is the need now to review the existing corruption laws in the country to ensure greater operation, efficiency and deterrence.”
Griffin called on the Economic and Financial Crimes Commission (EFCC), and the Independent Corrupt Practices Commission, (ICPC) to change the public perception that they are only engaged in prosecuting corrupt government officials because of the sentiments attached to it.
May Nigerians have commended the new anti-corruption drive by the Muhammadu Buhari administration, but called on the Federal Government to make judicious use of the recovered monies for the development of the country.
“There is infrastructural decay in the country, yearning for prompt attention, just as the citizens are wallowing in abject poverty and hunger. Nigerians are expecting better living condition from the out-come of the fight against corruption,: a civil servant Mrs Judith Amachree said.
Another source said, “we have refineries that need to be made function and produce petroleum products at higher capacities and we have the industrial sector that is crying for revival. If the Federal Government can use the recovered loots to take care of these areas there will be employment for the teeming jobless youths, and issue of restiveness will be over”.
It would be recalled that as part of the drive to recover the monies looted by Nigerians in the past, the United States (U.S.) has agreed to repatriate $480 million believed to have been stolen by the late Head of State, General Sani Abacha and his family to Nigeria.
A source who did not want his name in print, told our correspondent that the Abacha family’s loot is the largest ever traced to a former Nigerian public officer in the United States, pointing out that the conditions for the repatriation of the cash and other details are being worked out.
It was also learnt that the Department of Justice in the US now has a kleptocracy unit, which will assist track looted funds and money laundered by public officials from Nigeria and other countries. The planned repatriation, according to the source, was the outcome of a recent meeting between US Department of Justice and Nigeria’s Attorney-General and Minister of Justice, Abubakar Malami, and the Acting Chairman of the Economic and Financial Crime Commission (EFCC), Mr Ibrahim Magu.
A highlight of the loot as published shows that the Abacha family and its associates are to forfeit over $550 million and #95,910 in 10 accounts and six investment portfolios linked to them in France, Britain, British virgin Islands and the United States.
So far, cash recovered from the Abacha loot are $226.3 from Liechtenstein, 7.5m euros from an associated company in Liechtenstein in 2011, #22.5m from Island of Jersey while $480m is expected to be repatriated from the United States.
Recently, the Socio-Economic Rights and Accountability Project (SERAP) said it had received several documents from the World Bank totaling over 700 pages on information on the spending of recovered assets stolen by the late General Abacha, with some of the documents suggesting that Abacha loot was spent by the previous administrations on roads, electricity, education, health and water.
But a letter from Mr Rachid Benmessaoud of the SERAP revealed certain facts which raised more questions about what happened to Abacha loot.
Firstly, that Mrs Ngozi Okonjo-Iweala as Minister of Finance in a letter dated January 9,2005 explained to the World Bank that around $500 million of Abacha loot received from Switzerland was programmed into and spent in the 2004 and 2005 budgets on roads, etc, across all the 6 geo-political zones of Nigeria. Its breakdown showed that #18.60m was spent on roads, #10.83bn on health, #7bn on education, #6.20bn on water and #21.70bn on electricity. This shows that all the federal ministries had full details on the spending of repatriated Abacha loot.
But the big question is, if truly these recover monies were spent on these areas mention by the former minister of fiancé, why is Nigeria still suffering poverty are infrastructural decay?

 

Shedie Okpara

Continue Reading

Business

FIRS Clarifies New Tax Laws, Debunks Levy Misconceptions

Published

on

The Federal Inland Revenue Service has said that Nigeria’s newly enacted tax laws are designed to strengthen economic competitiveness, attract investments, and improve long-term fiscal stability.
The agency also clarified that the much-debated four per cent development levy on imported goods is not a new or additional tax burden, but a streamlined consolidation of several existing levies.
According a statement released Wednesday, one of the most misunderstood elements of the new tax framework is the four per cent development levy with the agency explaining that the levy replaces a range of fragmented charges — such as the Tertiary Education Tax, NITDA Levy, NASENI Levy and Police Trust Fund Levy — that businesses previously paid separately.
This consolidation, it said, reduces compliance costs, eliminates unpredictability and ends the era of multiple agency-driven levies. The law also exempts small businesses and non-resident companies, offering protection to firms most vulnerable to economic shocks.
Another major clarification relates to Free Trade Zones. Earlier commentary had suggested that the government was rolling back the incentives that have attracted export-oriented investors for decades. However, the reforms maintain the tax-exempt status of FTZ enterprises and introduce clearer guidelines to preserve the purpose of the zones.
“Under the new rules, FTZ companies can sell up to 25 per cent of their output into the domestic market without losing tax exemptions. A three-year transition period has also been provided to allow firms to adjust smoothly.
“Government officials say the reforms aim to curb abuses where companies used FTZ licences to evade domestic taxes while competing within the Nigerian market”, it said.
With the new measures, Nigeria aligns with global FTZ models in places like the UAE and Malaysia, where the zones function primarily as export hubs for logistics, manufacturing and technology.
The introduction of a 15 per cent minimum Effective Tax Rate for large multinational and domestic companies has also been met with public concern. But the FIRS notes that this policy aligns with a global tax agreement endorsed by over 140 countries under the OECD/G20 framework.
Without this adoption, Nigeria risked losing revenue to other countries through the “Top-Up Tax” mechanism, where the home country of a multinational collects the difference when a host country charges below 15 per cent. By localising the rule, Nigeria ensures that tax revenue from multinational operations remains within its borders.
Continue Reading

Business

CBN Revises Cash Withdrawal Rules January 2026, Ends Special Authorisation

Published

on

The Central Bank of Nigeria (CBN) has revised its cash withdrawal rules, discontinuing the special authorisation previously permitting individuals to withdraw N5 million and corporates N10 million once monthly, with effect from January 2026.

In a circular released Tuesday, December 2, 2025, and signed by the Director, Financial Policy & Regulation Department, FIRS, Dr. Rita I. Sike, the apex bank explained that previous cash policies had been introduced over the years in response to evolving circumstances.

However, with time, the need has arisen to streamline these provisions to reflect present-day realities.

The statement said the new set of cash-related policies is designed to reduce the cost of cash management, strengthen security, and curb money laundering risks associated with the economy’s heavy reliance on physical currency.

“These policies, issued over the years in response to evolving circumstances in cash management, sought to reduce cash usage and encourage accelerated adoption of other payment options, particularly electronic payment channels.

“With the effluxion of time, the need has arisen to streamline the provisions of these policies to reflect present-day realities,”

“Effective January 1, 2026, individuals will be allowed to withdraw up to N500,000 weekly across all channels, while corporate entities will be limited to N5 million”, it said.

According to the statement, withdrawals above these thresholds would attract excess withdrawal fees of three percent for individuals and five percent for corporates, with the charges shared between the CBN and the financial institutions.

Daily withdrawals from Automated Teller Machines (ATMs) would be capped at N100,000 per customer, subject to a maximum of N500,000 weekly stating that these transactions would count toward the cumulative weekly withdrawal limit.
The special authorisation previously permitting individuals to withdraw N5 million and corporates N10 million once monthly has been discontinued.

The CBN also confirmed that all currency denominations may now be loaded in ATMs, while the over-the-counter encashment limit for third-party cheques remains at N100,000. Such withdrawals will also form part of the weekly withdrawal limit.

Deposit Money Banks are required to submit monthly reports on cash withdrawals above the specified limits, as well as on cash deposits, to the relevant supervisory departments.

They must also create separate accounts to warehouse processing charges collected on excess withdrawals.

Exemptions and superseding provisions
Revenue-generating accounts of federal, state, and local governments, along with accounts of microfinance banks and primary mortgage banks with commercial and non-interest banks, are exempted from the new withdrawal limits and excess withdrawal fees.

However, exemptions previously granted to embassies, diplomatic missions, and aid-donor agencies have been withdrawn.

The CBN clarified that the circular is without prejudice to the provisions of certain earlier directives but supersedes others, as detailed in its appendices.

Continue Reading

Business

Shippers Council Vows Commitment To Security At Nigerian Ports

Published

on

The Nigerian Shippers Council (NSC)has restated its commitment towards ensuring security at Nigerian seaports.
Executive Secretary/Chief Executive Officer of the Council, Dr Pius Akuta, said this in Port Harcourt, while declaring open a one day workshop organized by the Nigerian Shippers Council in collaboration with the Nigerian police( Marin Division).
Theme for the workshop was ‘Facilitating Port Efficiency; The strategic Role of Maritime police “
Akuta who was represented by the Director, Regulatory Services, Nigerian Shippers Council, Mrs Margeret Ogbonnah, said the workshop was to seek areas of collaboration with security agencies at the Ports with a view to facilitating trade
Akuta said the theme of the workshop reflects the desire of the council and the Nigerian police to build capacity of police officers for better understanding and administration of their statutory roles in the Maritime environment.
He said Nigerian seaports has constantly been reputed as one of the Port with the longest cargo dwell in the world, adding,”This is so, because while it takes only six hours to clear a containerized cargo in Singapore Port, seven days in Lome Port, it takes an average of 21 days or more in Nigerian Ports” stressing that this situation which has affected the global perception index on Ease of Doing Business in Nigerian seaports must be addressed.
Akuta said NSC which is the economic regulator of the Ports has the responsibility of ensuring that efficiency is established in the Ports inorder to attract patronages.
“Pursuant to its regulatory mandate, the NSC has been collaborating with several agencies to ensure the facilitation of trade and ease of movement of cargo outside the Ports to avoid congestion”he said.
Also speaking the commissioner of police, Eastern Port Command, Port Harcourt, CP Tijani Fakai, said Maritime police has played some roles in facilitating Ports efficiency.
He listed some of the roles to include ensuring security and crime prevention at the Ports, checking of illegal fishing activities at the Ports, checking of human trafficking and drug smuggling and prevention of fire incident at the Ports.
Represented by ACP, Rufina Ukadike, the CP said police at the Ports have also helped in the decongestion and prevention of unauthorized Anchorage.
He commended the Nigerian Shippers Council for the workshop and assured of continuous collaboration.
Speaking on the dynamics of cargo handling, Deputy Controller of customs, Muhydeen Ayinla Ayoola, said the launching of electronic tracking system and dissolution of controller General Taskforce has helped to ensure efficiency at the Ports.
Ayoola who represented the custom Area Controller Port Harcourt 1 Area command, however raised concerned over rising national security threat , which according to him has affected efficiency at the Ports.
John Bibor
Continue Reading

Trending