Swiss govt gives Nigeria $50m

2004-04-19 15:05

Bern, Switzerland - The Swiss government has returned to Nigeria $50m linked to the later dictator Gen Sani Abacha, officials announced on Monday.

The money is part of the funds frozen in Swiss bank accounts in 1999 at the request of the Nigerian government, which accuses Abacha of looting more than $2.2bn from state coffers.

The return of the money follows an out-of-court settlement between the Nigerian government and one of the individuals involved in the Abacha case, the Federal Office of Justice said without giving any further details.

Nigerian President Olusegun Obasanjo has told the Swiss that the funds will be used for "social, health and educational projects," the office said.

Around $500m remains frozen in Swiss banks while the government decides who is the correct owner. Another $85m was previously released following a legal ruling against a British intermediary.

Last year Nigerian Finance Minister Ngozi Okonjo-Iweala urged Swiss officials during a visit to the capital Bern to speed the return of the money.

British authorities have found traces of another $1.3bn allegedly handled by British banks on behalf of Abacha's family and friends. Money also was discovered in Liechtenstein, Luxembourg and the British offshore banking centre of Jersey.

Abacha ruled Nigeria from 1993 until his death from an apparent heart attack in June 1998.

- AP