Hilary Andersson: "Nigeria has been destroyed by years of corruption"

He is reported to be undergoing questioning over a withdrawal of nearly $2.5bn from the Nigerian central bank during the rule of the former leader, General Sani Abacha.

Reports of his arrest were published in Tuesday's This Day newspaper. It said he was detained when security men stormed his house near the city of Kano.

Millions missing

Correspondents say Mr Gwarzo is believed to have illegally channelled millions of dollars into pro-Abacha campaigns.

Millions had been reportedly set aside to finance Nigeria's bid to get a permanent seat on the UN Security Council, said This Day.

Diplomats say Mr Gwarzo has already been made to pay back $250m collected from government coffers during the Abacha regime.

Years of corruption

The BBC's Lagos correspondent, Hilary Andersson, says Nigeria has been destroyed by years of corruption in high levels of government.

The new leader, General Abdulsalam Abubakar, has moved to distance himself from the former regime.

Members of the informal "kitchen cabinet" of General Abacha, like Mr Gwarzo, are now out of the circle of power .