Minister of Justice, Abubakar Malami confirmed the development at a press briefing on Tuesday.
He said Kanu was “intercepted” on Sunday and has been extradited to Nigeria to face trial.
The arrest followed a collaborative effort between security agencies in Nigeria and the Interpol.
Kanu was standing trial of charges bordering on treasonable felony instituted against him at the federal high court in Abuja in response to years of campaign for the independent Republic of Biafra through IPOB.
He was granted bail in April 2017 for health reasons but skipped bail after flouting some of the conditions given to him by the court.
His bail was revoked and there was a bench warrant for his arrest.