Lawal Jafaru Isa a leading member of Nigeria’s ruling party the All Progressive Congress has returned $500,000 that he allegedly received from the country’s former security adviser, Sambo Dasuki.
Isa was arrested last week as part of anti-corruption clean up initiated by Nigeria’s President Muhammadu Buhari.
President Buhari who came into power on the back of his stance to rid the country of corruption , ordered an investigation over $ 2 billion which was meant to buy military equipment to fight Boko Haram.
It is alleged that the funds went missing during the reign of former president Goodluck Jonathan.
Isa becomes the first ally of Mr Buhari to be arrested over alleged corruption.
According to Isa, he was given the money to buy a house for the embattled former security adviser Sambo Dasuki.
So far, Dasuki has not commented on the allegation concerning Isa, but has repeatedly denied any wrongdoing.
Several leading opposition politicians are facing trial over the the alleged fraud.