The U.S.has opposed plans by the Buhari government to hand about $100 million the American authorities said was stolen by former dictator Sani Abacha to Governor Atiku Bagudu of Kebbi state.
According to Bloomberg, the disagreement may hamper future cooperation between the two nations to recover state money moved offshore by Abacha, who Transparency International estimates may have looted as much as $5 billion during his 1993-98 rule.
A commitment by Nigeria to transfer the funds to Bagudu appears to undermine Nigerian President Muhammadu Buhari’s pledge to quell rampant graft in Nigeria.
The U.S. Department of Justice accused Bagudu of being involved in corruption with Abacha.
The DoJ also contends that the Nigerian government is hindering U.S. efforts to recover allegedly laundered money it said it has traced to Bagudu.