More than $267m (£210m) belonging to a former Nigerian dictator has been seized from a Jersey bank account.
The money was "derived through corruption" during the presidency of Sani Abacha in the 1990s, according to Jersey's Civil Asset Recovery Fund.
A shell company called Doraville held the funds, which were frozen in 2014.
After a five-year legal wrangle, the money has now been recovered and will be split between Jersey, the United States and Nigeria.
Jersey's attorney general, Robert McRae QC, said the seizure "demonstrated [Jersey's] commitment to tackling international financial crime and money laundering".
Mr Abacha was in power from 1993 until his death in 1998.
It is not yet clear how much money will be kept by each government.
Jersey's Law Officers Department declined to comment on the final distribution of the funds because it could "prejudice ongoing discussions".
Jersey's government said it had approached the US in 2007 to request legal proceedings begin in US courts over the laundered funds.
The US Department of Justice itself has forfeited millions of dollars of money back to Nigeria, ruling Mr Abacha and associates laundered funds through the US banking industry.
Following an "extensive" collection of evidence in a variety of international jurisdictions, the funds were frozen by the Royal Court in 2014 and finally paid into the Civil Asset Recovery Fund on 31 May.
The money is just a fraction of the billions of dollars that were allegedly stolen and laundered during the presidency of Mr Abacha.
Swiss authorities last year returned $300m (£228m) to the Nigerian government, after it was found to have been stolen from public funds.
That money is being paid back to 300,000 Nigerian households over the next six years.
A spokesman for Jersey's Law Officers Department said it had faced "challenges and appeals" all the way to Jersey's highest court, as well as "separate proceedings" by a third party in US court.
BBC
Wednesday, June 5, 2019
Oil thieves in Nigeria roar back
Just as Nigeria gets to grips with militants who brought the nation’s oil industry to its knees a few years ago, another group of longstanding foes are slowly making a comeback: thieves.
Saboteurs including thieves caused an 80% increase in the number of spills in 2018, Royal Dutch Shell Plc, the largest international producer in the West African country, said in a report last month. By contrast, there have been no militant-related halts to operations since 2016.
The disruptions underscore how hard it will be for Nigeria to fully rid itself of security challenges that have plagued the nation for decades. Overseas crude shipments represented by far the nation’s largest source of export income, with about $43.6 billion of sales last year, according to ITC Trade Map, a venture between the WTO and the UN.
“Oil theft is a severe drain on Nigeria’s revenue,” said Cheta Nwanze, the head of research at SBM Intelligence, a Lagos-based consultant. “The losses to theft could easily fund Nigeria’s budget deficit.”
Eight Times
On one level, theft is probably a more palatable option for Nigeria and the companies operating there than attacks by militants. About 100,000 barrels a day are being taken out of pipelines, whereas militancy halted at least eight times times that amount at one stage three years ago.
The increase reflects a belief among local communities that multinationals don’t really own the barrels in the first place, according to Ledum Mitee, a lawyer and minority rights activist.
“They believe the oil is theirs and the government is the thief,” he said. “People now realize that instead of just cutting pipelines to spite the government, they can make money out of it.”
Big Employer
It’s also akin to an industry. Theft employs at least 500,000 people in the country, according to Mitee, former head of the Nigeria Extractive Industries Transparency Initiative.
Much of the stolen crude is processed in tiny, makeshift refineries comprising hundreds of cauldrons, each of which can hold as much as 150 barrels of oil, according to Nwanze. The world’s biggest refineries handle more than 1.2 million barrels each day.
Unlike politically-driven militancy, where fighters say they represent impoverished people in the Niger Delta region, stealing crude is considered a less risky option for those involved.
Multiple incidents of force majeure, a legal measure that allows companies to forgo their contractual supply obligations, have happened this year in Nigeria -- even if the precise causes often remain unclear.
Nembe Creek
Aiteo Group, operator of the Nembe Creek Trunk Line to Shell’s Bonny export terminal, has been one of the hardest hit this year, halting flows through the link at least three times since January.
And the challenges doesn’t appear to be getting easier. Shell lost an average of 11,000 barrels a day to theft in 2018, it said. That’s up from losses of 9,000 barrels of crude a day in 2017.
Chevron Corp. has also reported problems with third-party interference on its production facilities.
The rogue refineries, essentially scaled up versions of widespread gin distilleries in the region, typically employ about 100 people working in shifts. Yields from a single cauldron will include 7,500 liters of diesel, 2,000 liters of gasoline and 500 liters of kerosene a day. It costs about 4 million naira ($11,100) to construct a boiling pot.
Crude Operators
Oil producers often take their own security measures, deploying daily helicopter surveillance with infrared cameras while simultaneously pushing state authorities to do more. But large-scale theft persists.
Addressing the challenge requires a “holistic approach,” Nigeria’s Oil Minister Emmanuel Kachikwu said after attending a cabinet meeting in Abuja last month.
“Oil theft is rife because there is an economic gain to be made from it,” Kachikwu said. “So we want to shut those illegal gains by creating positive and legal economic opportunities.”
By Elisha Bala-Gbogbo
Bloomberg
Saboteurs including thieves caused an 80% increase in the number of spills in 2018, Royal Dutch Shell Plc, the largest international producer in the West African country, said in a report last month. By contrast, there have been no militant-related halts to operations since 2016.
The disruptions underscore how hard it will be for Nigeria to fully rid itself of security challenges that have plagued the nation for decades. Overseas crude shipments represented by far the nation’s largest source of export income, with about $43.6 billion of sales last year, according to ITC Trade Map, a venture between the WTO and the UN.
“Oil theft is a severe drain on Nigeria’s revenue,” said Cheta Nwanze, the head of research at SBM Intelligence, a Lagos-based consultant. “The losses to theft could easily fund Nigeria’s budget deficit.”
Eight Times
On one level, theft is probably a more palatable option for Nigeria and the companies operating there than attacks by militants. About 100,000 barrels a day are being taken out of pipelines, whereas militancy halted at least eight times times that amount at one stage three years ago.
The increase reflects a belief among local communities that multinationals don’t really own the barrels in the first place, according to Ledum Mitee, a lawyer and minority rights activist.
“They believe the oil is theirs and the government is the thief,” he said. “People now realize that instead of just cutting pipelines to spite the government, they can make money out of it.”
Big Employer
It’s also akin to an industry. Theft employs at least 500,000 people in the country, according to Mitee, former head of the Nigeria Extractive Industries Transparency Initiative.
Much of the stolen crude is processed in tiny, makeshift refineries comprising hundreds of cauldrons, each of which can hold as much as 150 barrels of oil, according to Nwanze. The world’s biggest refineries handle more than 1.2 million barrels each day.
Unlike politically-driven militancy, where fighters say they represent impoverished people in the Niger Delta region, stealing crude is considered a less risky option for those involved.
Multiple incidents of force majeure, a legal measure that allows companies to forgo their contractual supply obligations, have happened this year in Nigeria -- even if the precise causes often remain unclear.
Nembe Creek
Aiteo Group, operator of the Nembe Creek Trunk Line to Shell’s Bonny export terminal, has been one of the hardest hit this year, halting flows through the link at least three times since January.
And the challenges doesn’t appear to be getting easier. Shell lost an average of 11,000 barrels a day to theft in 2018, it said. That’s up from losses of 9,000 barrels of crude a day in 2017.
Chevron Corp. has also reported problems with third-party interference on its production facilities.
The rogue refineries, essentially scaled up versions of widespread gin distilleries in the region, typically employ about 100 people working in shifts. Yields from a single cauldron will include 7,500 liters of diesel, 2,000 liters of gasoline and 500 liters of kerosene a day. It costs about 4 million naira ($11,100) to construct a boiling pot.
Crude Operators
Oil producers often take their own security measures, deploying daily helicopter surveillance with infrared cameras while simultaneously pushing state authorities to do more. But large-scale theft persists.
Addressing the challenge requires a “holistic approach,” Nigeria’s Oil Minister Emmanuel Kachikwu said after attending a cabinet meeting in Abuja last month.
“Oil theft is rife because there is an economic gain to be made from it,” Kachikwu said. “So we want to shut those illegal gains by creating positive and legal economic opportunities.”
By Elisha Bala-Gbogbo
Bloomberg
Tuesday, June 4, 2019
Students from Nigeria return home to heroic welcome after China contest
A team of 6 Nigerian students who emerged 3rd at the recently concluded Huawei Global ICT Competition in Shenzhen, China, have returned home to heroic welcome. At least 49 teams from 30 countries took part in this years contest.
Child viglantes in Nigeria return to school
Nearly 2,000 former child vigilantes who fought against Boko Haram have returned to their homes in northeast Nigeria. The United Nations says some of the children took up arms to help the army fight the armed group, allegation officials deny. Hundreds of the former fighters have since returned to school.
Monday, June 3, 2019
Video - Nigeria's 'mega schools' for Boko Haram victims
So-called "mega schools" have been opened in northeast Nigeria to take in around 50,000 orphans of war. Boko Haram fighters have destroyed classrooms, killed teachers and kidnapped students in 10 years of fighting. As the public school system is rebuilt in Borno State, experts say children need other help too.
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