THE ROLE OF ECONOMIC AND FINANCIAL CRIMES COMMISSION AND PROMOTING SANITY IN NIGERIA FINANCIAL SYSTEM (A CASE STUDY OF PUBLIC AND PRIVATE SECTOR)

 ABSTRACT

Several years of military misrule and mismanagement had weakened the economic management processes and institutions in Nigeria. There was no transparency and accountability in government (Public Sector) and private sectors and Nigeria became notorious for endemic corruption. The result was the inability of government to deliver corruption. Most private companies both in the oil and non-oil sector have constantly evade taxes and have collide with officials to evade custom duties and payment of taxes. In addition, widespread perpetration of economic and financial crime banking fraud and fraud (419), money laundering, cyber crime, banking fraud and endemic corruption have had severe negative consequences on Nigeria. Consequently, the Economic and Financial Crimes Commission (EFCC) was established as one of the mechanisms for the prevention, investigation and prosecution of corrupt practices and economic and financial crimes in the public and the private sector. Finally, this research work is aimed at looking into the various contributions of the Economic and Financial Crimes Commission (EFCC) in promoting financial accountability and transparency. To achieve this aim five research questions were developed. The study adopted the survey research approach using the three study areas. The EFCC Lagos, EFCC Enugu ad PHCN formed the population of the study. A sample size of 55 was choosing using Taro Yamane’s model while simple random techniques were used to select the sample. Data retrieved from 55 completed questionnaires were subsequently  presented in tables while simple percentage were used to analyze and answer the research questions formulated to guide the research work. After the analysis of data, the hypothesis tested reviewed that the contributions of EFCC has effectively promoted financial accountability and transparency in Nigeria. Therefore, the researcher recommends the following: developing an intensified information technology, staff training, capacity building and health care fraud control.   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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TABLE OF CONTENTS

     PAGE

Title                                                                                                                             i

Certification                                                                                                                ii

Dedication                                                                                                                  iii

Acknowledgement                                                                                                      iv

Abstract                                                                                                                      v

Table of contents                                                                                                        vi – vii

 

CHAPTER ONE

1.0       Introduction                                                                                                    1

1.1       Background to the Study                                                                               1

1.2       Statement of the Problem                                                                               2

1.3       Objective of the Study                                                                                   2

1.4       Research Questions                                                                                         3

1.5       Research Hypothesis                                                                                       3

1.6       Significance of the Study                                                                               3

1.7       Scope of the Study                                                                                         4

1.8       Limitations of the Study                                                                                 4

1.9       Operational Definition of terms                                                                      4

CHAPTER TWO

2.0       Literature Review                                                                                           6

2.1       Origin of Economic and Financial Crimes Commission (Efcc)                      7

2.1.1    Economic and Financial Crimes                                                                     7

2.1.2    Causes of Economic and Financial Crimes                                                     8

2.1.3    Effects/Consequences of Economic and Financial Crimes                            8

2.2       Power of Efcc in Controlling Crime                                                               9                                                          

2.2.1    Mandates of the Commission                                                                          9

2.3       Matters Efcc Investigate                                                                                 9

2.4       Capital Market Fraud                                                                                     10-13

2.5       Efcc and Other Arms                                                                                      13

 

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2.6       Constraints Faced By Efcc in Curbing Fraud in Nigeria                              14-15

2.7       Achievements of Efcc                                                                                                16-19

2.8       Theoretical Framework                                                                                   20

CHAPTER THREE

3.0       Research Methodology                                                                                   21

3.1       Research Design                                                                                             21

3.3       Population and Sample Size                                                                           21-22

3.4       Research Instrument for Data Collection                                                       23

3.5       Method of Data Collection                                                                                         24

3.6       Method of Data Analysis                                                                               24-25

CHAPTER FOUR  

4.0       Data Analysis and Interpretation                                                                    26

4.1       Data Presentation                                                                                            26

  • Analysis of Questionnaire 27

4.3       Testing of Hypothesis                                                                                     27-34

 

CHAPTER FIVE

5.0       Summary, Conclusion, Recommendations and Suggestion

for Further Study                                                                                            35

5.1       Summary                                                                                                         35

5.2       Conclusion                                                                                                      35

5.3       Recommendations                                                                                          36

Bibliography                                                                                                   37

Appendix I                                                                                                      38

Appendix II (Questionnaire)                                                                                      39-40

 

 

 

 

 

 

 

 

 

CHAPTER ONE

1.0                                                           INTRODUCTION

1.1       BACKGROUND TO THE STUDY

The level of Economic and Financial Crime like advance free fraud, scam mails, illegal oil bunkering and money laundering has had several negative effect on Nigeria, including decreased foreign direct investment in the country among the most corrupt nations of the world.

This menace lead to the establishment of EFCC in 2002 by an act of the National Assembly which was later amended in 2004. It was borne out of the determination of the Federal Government to root out corruption, and sanitize the Nigerian economic environment by enforcing all economic and financial crimes law.

The Act mandate the EFCC to combat financial and economic crimes and the commission is empowered to prevent, investigate, prosecute and penalize economic and financial crimes. Also, the EFCC is charged with and has been investigating cases of abuse of office, diversion of public funds through fraudulent award of contracts, tax fraud, illegal bunkering, terrorism, capital market fraud, cyber crime, banking fraud, etc.

With a mission to curb the menace of corruption that constitutes the clog in the wheel of progress; protect national and foreign investments in the country; issue the spirit of hardworking in the citizenry and discourage the crave of ill-gotten wealth, identify such ill-gotten wealth and confiscate them: build an upright workforce in both public and private sectors of the economy, and contribute to the global war against financial crimes and terrorism financing, the advent of the EFCC has impacted positively on Nigeria’s global acceptance being a turning point in the country’s anti-corruption crusade.

Since its establishment, the EFCC has taken the bill by the horns working tenaciously to fulfill its mandate. Under the current leadership, it vigorously pursues its mandate of investigating cases earlier highlighted; the commission has made concerted efforts in identifying, tracing and freezing, confiscating, or seizing proceeds derived from such illicit activities EFCC, from inception, has also played host to the Nigerian Financial Intelligence Unit (NFIU), vested with the responsibility of collecting suspicious transactions reports (STRs) from financial and designated non-financial institutions, analyzing and disseminating them to all relevant government agencies and other fills all over the world.

So far, the commission has been able to and still recording successes in several areas of its mandate. Among others, it has recorded several convictions on corruption, money laundering, oil pipeline vandalism and related offences. Assets and money worth over 11 billion have been recovered from corrupt officials and their cohorts. The commission is tenacious with over 65 high profile cases at advanced stages of prosecution in several courts and secured over 600 convictions.

Before then there were other provisions of crimes laws such as:

  • Money laundering amendment Acts 2003, No. 7.
  • The advance fee fraud and other related offences Act 1995 as amended.
  • The failed Banks (recovery of debts) and financial malpractices on Banks Acts 1994 as amended.
  • The banks and other financial institution Act 1991 as amended

 

The commission is also designated to Nigerian Financial Intelligent Unit (NFIU). It is thus, substantial that over problem is not the absence of legislation (law) or the deficiencies in them but the total neglect to enforce them have been the plight of disaster.

 

1.2       STATEMENT OF THE PROBLEM

            A nation where financial and economic crimes are endemic cannot attain economic stability, growth and development. According to Kristol’s (2007), the problem is always for more important than devising a solution, for he who can define the problem has always exercised a large degree of intellectual sovereignty over the range of possible solutions that must be imagined.

Nigerian being a country where corruption is pandemic has been rated both domestically and internationally as a corrupt nation. Public officials take huge bribes and the cost of public goods and services are inflated, government often pays for non-existent goods and services. Even when such corrupt practices were exposed, it has always been played to the gallery and scarified at the alter of backside bargaining. The corrupt practices that have characterized and painted the nation black include fraud, embezzlement falsification of financial information, obtaining by false pretence, lack of transparency and accountability among others.

These evils have no small measure negated economic stability, growth and development in our country. Experience has shown that both public and private (bank) sectors have continued to suffer inefficiency and ineptness and that growth indices and graph are having a downward slope. This has brought the pertinent question – are there adequate criteria /measures and checks to stem this ugly tide (corruption)?

Poor and insincere policy conception, formulation and implementation on economic and financial crimes in Nigeria have been responsible for the low achievement recorded in curbing and stamping out economic and financial crimes in the country. Hence, the emergence of the “Economic and Financial Crimes Commission to enhance financial accountability and transparency in Nigeria”.

 

1.3       RESEARCH QUESTIONS

  • What are the responsibilities and functions of EFCC?
  • What are the contributions of EFCC in detecting and controlling fraud in Nigeria?
  • How has EFCC contributions benefited Nigeria public and private sectors?
  • What are the contributions of EFCC in enhancing financial accountability and transparency?

What are the achievement and success of the commission?

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