Opinion
Where Are The Recovered Loots?
The story of recovered looted funds is no longer new. At various stages, huge amounts have been announced as either stolen, looted or recovered.
During the immediate past regime of president Goodluck Jonathan, humongous sums were reportedly recovered, especially from the Abacha stash. As he was canvassing for the vote of the electorate in 2015, President Muhammadu Buhari made the issue of looted funds a campaign point, promising to make known the culprits and the amount recovered .
In line with that promise, one year into his regime, the Federal Government announced the recovery of a whopping sum of N3.4 trillion in cash and assets from looters in the country in tweleve months.
Subsequently, there have been other recoveries made from political office holders and some top personalities in the country. Just a few weeks ago , the Minister of Information and Culture, Alhaji Lai Mohammed, disclosed that the sum of $151 million and another N8 billion looted funds were recovered from three sources through the whistle blower policy recently introduced by the Ministry of Finance. That excludes the $9.2 million cash recently recovered from a former General Managing Director of NNPC, Andrew Yakubu.
The sweeping recoveries that the Economic and Financial Crimes Commission (EFCC) claims to have been making since the introduction of the whistle blower policy is mind-blowing.
To think that such reckless stealing has been going on in a country that claims to have laws and yet, there is hardly any successful prosecution, not to talk of conviction, is simply incredible. In civilized climes, many of the culprits would have been facing the wrath of the law by now. But ours is a country where conscienceless, opportunistic elite, after stealing the states and the nation blind, are welcomed with parties and state banquets. But an ordinary person caught stealing a goat spends years in prison.
One finds it a bit worrisome that despite the huge sums said to have been recovered, the economy of the country is still in a very bad shape. We still hear the Federal Government seeking loans from international lenders, including the World Bank and the African Development Bank to meet budget shortfalls and fund badly needed infrastructural projects.
One must not be an expert in economics to reason that if you claim to have over 3.4 trillion naira, there is no justification for borrowing 2.2 trillion naira, an amount far below what you have.
The question then is, where are the recovered loots? Is the recovery a mere propaganda as many people have insinuated?
Last year, Chairman, Presidential Advisory Committee Against Corruption, Prof Itse Sagay, disclosed that despite recovering stolen Nigerian money, President Buhari might not be able to spend the monies on urgent needs of the country due to some legal issues.
Speaking with newsmen he said, “Regarding the funds frozen under the interim forfeiture, the Federal Government can’t touch it for now because certain cases have not been concluded and the forfeiture is interim because technically, the court can order the release to the owners if the occasion demands it, but if it goes the other way, there will be permanent forfeiture order and that is when the properties would accrue to the government and therefore be used for the benefit of Nigerians.”
But if I may ask, how long will it take for these bottlenecks to be sorted out? Eternity? The truth is that Nigerians legitimately deserve to know how the Federal Government had spent or intends to spend the recovered monies.
Should the government have sufficient reasons not to plough the recovered loot into the budget as has been severally suggested, why not invest it in non-oil sectors of the economy, particularly agriculture and solid minerals which are key areas needed to drive the economy and create jobs?
Today, Nigeria has become a dumping ground for all kinds of edible commodities from all parts of the world, including packaged garri from India. I’m sure the $9.2 million recovered from Yakubu can turn around the agriculture sector and save us from this shame. What about building world class hospitals, equipping our schools, empowering small scale industries with part of the recovered loots? Also, the power sector will witness a massive improvement if a reasonable percentage of these monies is genuinely invested in it. Indeed, the recovered loots are enough to revamp the economy if properly and judiciously utilized.
Most importantly, it is high time the government began the arduous task of putting institutional frame-works that will discourage corruption. There are a lot of loopholes in the system that make it possible for political office holders to steal public money.
Yakubu said the $9.2m found in his house came as gifts from people. Painfully, that might be true because the system made it possible. Corruption will always thrive in a system that deliberately prices essential, scarce commodities like petroleum products below market prices. The mess going on with the CBN forex policy will also explode by the fullness of time. The operators all know that the system is faulty and they are happily manipulating it.
Conclusively, as long as those involved in the primitive, mindless looting of the treasury continue to go scotfree, we will continue to have more of such looters.
Calista Ezeaku
From all indications, Nigeria possesses enough human and material resources to become a true economic powerhouse in Africa. According to the National Population Commission (NPC, 2023), the country’s population has grown steadily within the last decade, presently standing at about 220 million people—mostly young, vibrant, and innovative. Nigeria also remains the sixth-largest oil producer in the world, with enormous reserves of gas, fertile agricultural land, and human capital.
Yet, despite this enormous potential, the country continues to grapple with underdevelopment, poverty, unemployment, and insecurity. Recent data from the National Bureau of Statistics (NBS, 2023) show that about 129 million Nigerians currently live below the poverty line. Most families can no longer afford basic necessities, even as the government continues to project a rosy economic picture.
The Subsidy Question
The removal of fuel subsidy in 2023 by President Bola Ahmed Tinubu has been one of the most controversial policy decisions in Nigeria’s recent history. According to the president, subsidy removal was designed to reduce fiscal burden, unify the foreign exchange rate, attract investment, curb inflation, and discourage excessive government borrowing.
While these objectives are theoretically sound, the reality for ordinary Nigerians has been severe hardship. Fuel prices more than tripled, transportation costs surged, and food inflation—already high—rose above 30% (NBS, 2023). The World Bank (2023) estimates that an additional 7.1 million Nigerians were pushed into poverty after subsidy removal.
A Critical Economic View
As an economist, I argue that the problem was not subsidy removal itself—which was inevitable—but the timing, sequencing, and structural gaps in Nigeria’s implementation.
- Structural Miscalculation
Nigeria’s four state-owned refineries remain nonfunctional. By removing subsidies without local refining capacity, the government exposed the economy to import-price pass-through effects—where global oil price shocks translate directly into domestic inflation. This was not just a timing issue but a fundamental policy miscalculation.
- Neglect of Social Safety Nets
Countries like Indonesia (2005) and Ghana (2005) removed subsidies successfully only after introducing cash transfers, transport vouchers, and food subsidies for the poor (World Bank, 2005). Nigeria, however, implemented removal abruptly, shifting the fiscal burden directly onto households without protection.
- Failure to Secure Food and Energy Alternatives
Fuel subsidy removal amplified existing weaknesses in agriculture and energy. Instead of sequencing reforms, government left Nigerians without refinery capacity, renewable energy alternatives, or mechanized agricultural productivity—all of which could have cushioned the shock.
Political and Public Concerns
Prominent leaders have echoed these concerns. Mr. Peter Obi, the Labour Party’s 2023 presidential candidate, described the subsidy removal as “good but wrongly timed.” Atiku Abubakar of the People’s Democratic Party also faulted the government’s hasty approach. Human rights activists like Obodoekwe Stive stressed that refineries should have been made functional first, to reduce the suffering of citizens.
This is not just political rhetoric—it reflects a widespread economic reality. When inflation climbs above 30%, when purchasing power collapses, and when households cannot meet basic needs, the promise of reform becomes overshadowed by social pain.
Broader Implications
The consequences of this policy are multidimensional:
- Inflationary Pressures – Food inflation above 30% has made nutrition unaffordable for many households.
- Rising Poverty – 7.1 million Nigerians have been newly pushed into poverty (World Bank, 2023).
- Middle-Class Erosion – Rising transport, rent, and healthcare costs are squeezing household incomes.
- Debt Concerns – Despite promises, government borrowing has continued, raising sustainability questions.
- Public Distrust – When government promises savings but citizens feel only pain, trust in leadership erodes.
In effect, subsidy removal without structural readiness has widened inequality and eroded social stability.
Missed Opportunities
Nigeria’s leaders had the chance to approach subsidy removal differently:
- Refinery Rehabilitation – Ensuring local refining to reduce exposure to global oil price shocks.
- Renewable Energy Investment – Diversifying energy through solar, hydro, and wind to reduce reliance on imported petroleum.
- Agricultural Productivity – Mechanization, irrigation, and smallholder financing could have boosted food supply and stabilized prices.
- Social Safety Nets – Conditional cash transfers, food vouchers, and transport subsidies could have protected the most vulnerable.
Instead, reform came abruptly, leaving citizens to absorb all the pain while waiting for theoretical long-term benefits.
Conclusion: Reform With a Human Face
Fuel subsidy removal was inevitable, but Nigeria’s approach has worsened hardship for millions. True reform must go beyond fiscal savings to protect citizens.
Economic policy is not judged only by its efficiency but by its humanity. A well-sequenced reform could have balanced fiscal responsibility with equity, ensuring that ordinary Nigerians were not crushed under the weight of sudden change.
Nigeria has the resources, population, and resilience to lead Africa’s economy. But leadership requires foresight. It requires policies that are inclusive, humane, and strategically sequenced.
Reform without equity is displacement of poverty, not development. If Nigeria truly seeks progress, its policies must wear a human face.
References
- National Bureau of Statistics (NBS). (2023). Poverty and Inequality Report. Abuja.
- National Population Commission (NPC). (2023). Population Estimates. Abuja.
- World Bank. (2023). Nigeria Development Update. Washington, DC.
- World Bank. (2005). Fuel Subsidy Reforms: Lessons from Indonesia and Ghana. Washington, DC.
- OPEC. (2023). Annual Statistical Bulletin. Vienna.
By: Amarachi Amaugo