Nigeria's President Olusegun Obasanjo has denied misusing a letter of credit (L/C) in his response to allegations made against him by the lower house of Nigeria's parliament.

The House of Representatives alleges that the Nigerian leader authorised an L/C for around US$74 million for spending on the National Identity Card project, as against the approximately US$46 million that according the president's accusers had been officially approved.

Other charges

Obasanjo denies misuse of public funds in that project and maintains that spending on the National Identity Card project up to the amount of the L/C had been budgeted for. Moreover, he said that officially sanctioned spending had in fact exceeded the L/C amount. Therefore he says he could not have used any funds for "extra budgetary" purposes.

The Nigerian leader is also defending himself against allegations of extra budgetary spending on a National Stadium contract and the unapproved authorisation in 2002 of purchases of 63 houses and their furnishing for ministers.

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