Budget financing: Counting on recoverable loot

Also published in Daily Trust

As oil-dependent countries continue to adopt cost-saving measures and pursue alternative revenue generation and/or augmentation policies to tackle the economic impacts resulting from the persistent fall in crude oil prices globally, the level of anxiety that characterizes the approach of each country in this regard varies according to the extent of its economic vulnerability.

Unsurprisingly, therefore, countries, which have been able to use their oil revenues in the provision of adequate economic infrastructure, and have been able to make substantial progress in economic diversification (e.g. the UAE that has been able to reduce its dependence on oil by 70%,) are coping with the situation quite comfortably by simply implementing further economic diversification strategies having already had the economic infrastructure necessarily needed in order to achieve effective and sustainable economic diversification.
 

Whereas, countries where the elites have taken the inflow of huge chunks of oil money for granted hence squandered and misappropriated it, are equally unsurprisingly groaning under  the predictably ensuing economic predicament they have found themselves in, which they may also not be able to survive in the long run if it persists. 

Unfortunately, this is exactly the situation in Nigeria where the virtual absence of adequate economic infrastructure makes it particularly difficult for the federal government to implement economic diversification polices effective enough to generate revenues desperately needed to cover its huge and yet growing budget deficit.

Besides, what makes Nigeria’s situation particularly depressing is that, it comes when hope in the country’s future has been revived by the emergence of President Muhammadu Buhari on whose integrity and incorruptibility Nigerians count to get things turned around in the country.

Now, faced with these difficult circumstances, President Buhari, rightly seeks to, among other things, recover public funds and assets stolen and stashed away and/or invested at home and/or aboard by particularly top government officials, politicians and their accomplices.

Obviously the amount of such stolen funds and assets is definitely staggering considering the length of the period over which the thefts have been perpetrated with impunity and, of course, in view of the sheer severity and pervasiveness of the ensuring poverty and social instability in the country. Recovering it, therefore, will certainly not only improve Nigeria’s finances but will actually fill up government’s vaults with billions of US dollars, Euros and other hard currencies.

Also, with Buhari as President under whom blatant acts of theft and impunity would not be condoned, one can imagine the amount of infrastructural development that can be provided and the extent of economic growth that can be achieved with such amount of funds.  

However, though the federal government can count on the successful recovery of such stolen public funds and assets to achieve these, the circumstances of the process don’t appear be to simple after all, due to the intricate procedural, legal, judicial and even diplomatic procedures necessarily involved, which could also drag on to outlive President Buhari’s presidency even if he is elected to a second term. Obviously, there are many serious corruption cases and judicial trials that started as far back as almost a decade or perhaps even more than a decade, and are yet still purportedly being investigated by anti-corruption agencies or supposedly being tried in various courts.

Meanwhile, the suspects, or rather, the thieves are still enjoying their unearned freedom and are, of course, enjoying their loot also. In fact, many of them have, by hook or by crook, managed to get appointed or elected to various political offices in the country.

To prevent the perpetuation of this trend, therefore, and to avoid any disappointment in the process or at the end of the ongoing investigations and trials of the current and former government officials suspected of monumental thefts of public funds and assets, the federal government should, as a matter of urgency, and in coordination with the National Assembly and the judiciary, review the relevant procedures governing anti-corruption investigation and trial in the country.

There is an urgent need to come up with appropriate administrative, legal and judicial mechanisms that would ensure the speedy completion of anti-corruption investigations, diligent prosecution and prompt sentencing of those involved in stealing public funds and/or enriching themselves through corrupt practices at the expense of the wellbeing of Nigerians, of course without prejudice to the need for transparency in investigation, fair hearing in trail and justice in judgment.

This should also include the formation of special anti-corruption investigation teams within the existing ant-corruption agencies, and of course the creation of special tribunals to ensure prompt dispensation of justice. After all, identifying stolen funds or assets bought with stolen funds in the country isn’t that difficult despite the culprits’ expertise in loot laundering tactics in which their accomplices in banking industry and other sectors of the economy are actively involved.

Anyway, regarding the stolen funds and assets stashed away aboard, the federal government should, in addition to legal means, also explore effective diplomatic means to engage the countries where many corrupt Nigerians have stashed away or invested billions of dollars stolen from Nigeria with a view to recovering it within the shortest period of time possible. Because, approaching this issue in particular from purely legal point of view would undoubtedly and unnecessarily prolong the process.

For instance, though it has been more than a decade now since Nigeria began pursuing the recovery of funds stashed away aboard by former Head of State, late General Sani Abacha, yet the funds have not yet been fully recovered.