ANAPPRAISAL OF THE ECONOMIC AND FINANCIAL CRIMES COMMISSION (EFCC) IN NIGERIA

CHAPTERONE

INTRODUCTION

1. Background of the Study

The belief that corruption, nay economic and financial crimes is a global phenomenon is no longer in doubt. Equally, the notion that corruption is pernicious to the generality of the human race stands unchallengeable. The authenticity of these postulations partly derives currency from the series of war against corruption across the globe. Such wars have been declared either singularly by nation-states or in concert with nation-states in the same way international non-governmental organizations and international political organizations have done; and have continued to do (Orngu, 2006).

Orngu (2006), further asserts that, in November 1997, following the Lima Declaration Against Corruption in Peru, Civil Society Organizations met under the auspices of the Global Coalition for Africa in Maputo, Mozambique and declared corruption a crime against humanity. Similarly, and in quick succession, the Organization for Economic Cooperation and Development (OECD) Anti-Bribery Convention was adopted a month later. In 2003, there was an adoption of the United Nations Convention on Corruption. It was in the same year that the African Union (AU) Convention on Preventing and Combating Corruption and Related Offences was adopted in July at the 2^nd Ordinary Session of the Assembly of heads of State and Governments of the AU. For decades, almost all African governments have been consistently grappling with some policies, strategies and institutional frameworks to deal with corruption.

For Nigeria, the legacy of corruption and lack of accountability bequeathed by many years of military misrule continues to be an impediment to the goals of socio- economic development (Akanbi,2004). Jega (2009) posits that, theperiodsince1999 has

witnessed an increased number of ethno-religious violence leading to social, economic and political misfortunes. Inspite of her human and natural resources endowment, majority of Nigerians still live in abject poverty. Public institutions are ill equipped and service delivery is poor. The theft of public funds has resulted in serious chaos. Orngu (2006:36), opines that, “Nigeria has acquired all the characteristics of a failed state, and democracy and goodgovernance appear to be the only panacea, hence the birth of the Fourth Republic in 1999”.

Although it is generally believed to be universal as it is found in every human society, corruption is so pervasive in the Nigerian society such that Nigeria in recent years has been ranked by Transparency International in global corruption rating as one of the most corrupt countries in the world. Nigeriais ranked 143 out of182 countries in Transparency International's 2011 Corruption Perceptions Index (TI, 2014). Over the years, the country has seen its wealth withered with little to show in living conditions of the average human being. It is a nation bestowed with vast human and natural resources. Despite its enormous array of resources, the Nigerian economy has witnessed a period of stagnant economic growth. This has been partly blamed on corruption and gross mismanagement of the country’s vast resources.

Over the years especially during the military regimes, little was done to fight this socio- political malaise. Thus, the anti-corruption efforts of the government during Muhammadu Buhari/TundeIdiagbonandOlusegunObasanjo’sadministrationfailedtoproducedesiredresults (Agbu, 2003). Some of the policies during these regimes include: decree no. 5 of 1976 for the investigationoftheassetsofpublicofficersandsupportedbytheCodeofConduct Tribunalsand the Code of Conduct Bureau as prescribed by the 1979 Constitution, the Corrupt PracticesDecree of 1975, the 1979-1983 Ethical Revolution of Shehu Shagari, the Corrupt Practices and EconomicCrimesdecreeof1990andtheestablishmentofanationalcommitteeforthefight

against corruption and Economic crimes between 1985-1993 by the Babangida’s regime . However, the fact that corruption is still prevalent and pervasive in the Nigerian society depicts the failure of some of these anti-corruption policies (Agbu, 2003).

Although corruption is a global phenomenon but there are strong suggestions that its adverse effects are felt more severely in developing and transitional economies in comparison to more industrialized countries where social and economic institutions are more stronglydeveloped and the illegal proceeds from corruption are more likely to be re-invested locally (Igbuzor, 2008). Nigeria is frequently cited as one of the leading examples of resource-rich countries in the developing world that is underdeveloped and poverty pervasive after decades of poor governance and corruption. It has regularly featured as one of the world’s most corrupt countries within Transparency International surveys. One case in point is the estimated extent of corruption in Nigeria which gives the figure of stolen public funds outrageously. It has been estimated, for example, that between 1960 and 1999 over $440 billion of public revenue was stolen by public officials (civil servants and politicians) in Nigeria (Ribadu, 2009:2 and Blair, 2005: 51). Several decades of poor governance and corruption have seemingly played a role in exacerbating the levels of socio-economic inequality between a small select group of politicians, publicofficialsandbusinesselitesandthemassofordinaryNigerians.AccordingtoWorldBank estimates, approximately 80% of Nigeria’s oil wealth is concentrated in the hands of 1% of the population, while over 70 percent of the population live below the poverty line (World Bank 2006).

ItwasAchebe(1983),whosaidthatanyonewhocansaythatcorruptioninNigeriahasnot yetreachedalarmingproportioniseitherafool,acrook,orelsedoesnotliveinNigeria.Hefurther assertedthatthesituationhascometotheextentthatkeepinganaverageNigerianfrombeing

corruptwaslikepreventingagoatfromeatingyam.ThismonumentalcorruptpracticeinNigeriais verysevereanddevastating.ThemenaceofcorruptioninNigeriahascertainlyemergedasoneof the main impediments to national development. Corruption in the countryhas caused the country severe losses economically, politically and socially, and these facts are responsible for decayed infrastructure, downturn of the economy, fragile political institution, and steady decline in all indicatorsofnationaldevelopment(Keeper,2012).Agreeingwiththeforegoingassertion,Human RightsWatch(2007:40)statedthatNigeriahassomeoftheworstsocio-economicindicatorsinthe world and the overall picture has not improved since the end of the military rule. Corruption midwifed by Nigerian leaders is a social malaise which has accounted for lack of vision and mission by government. Dike (2006), also opines that corruption brings a country no good. Corruption has eaten so deep into the fabric of our society, that no segment can claim immunity from its ugly effects, not even religious bodies. Corruption today is still a deadly disease in Nigeria,andmanyNigeriansare yet tobefreefromit.Corruptionisfoundmoreespeciallyinthe government institutions; the executive, the legislature, judiciary, establishments such as the military, police, road safety corps etc and government bureaucracy. Various past and present Nigerian leaders have been indicted for being unashamedly corrupt (Agenda 20:2020). Consequently, corruption has become the biggest challenge militating against Nigeria's democratizationmarch,whichhasalwaysshownitseffectsonNigeria'spastandpresent fragileandfledglingdemocracy.

Generally,thefailureofthecountrytoachieveamodicumofdevelopmenthas largelybeingblamedoncorruption.Thus,corruptionseemstobethebaneof developmentinNigeria.Hence,effortofthedemocraticadministrationtocurtailthemenaceofcorruptionsincethereturntodemocraticrulewiththeestablishmentof

EconomicandFinancialCrimesCommission(EFCC)Act2002clearlyunderpinsthis researchstudy.Thefocusofthisstudy isontheappraisaloftheEconomicandFinancial CrimesCommission(EFCC),oneofthemajoranti-corruptionagenciesestablishedinthe wakeofthereturntodemocracyfrom2002–2015.Againstthisbackdrop,pertinent questionsborderingonwhathavebeenthebaneoftheeffectivefunctioningorotherwiseof the anti-corruption agency with the bourgeoning corruption cases in our democratic dispensation was examined.

1. StatementoftheProblem

Economicand financial crimesarepowerful manifestationsofthe global organized crime threat. These phenomena manifest in different patterns and dimensions. In Nigeria, economicand financial crime is a generic term, which refers to a number of unlawful practices defined under the Economic and Financial Crimes Act of 2004 and other relevant legislation, which includes corruption, advanced fee fraud (419), drugs and human trafficking, smuggling, tax evasion, fraud and malpractice, illegal oil bunkering, and money laundering. Although conventional crime is as old as the society itself, these phenomena became prevalent and were officially recognized as serious threats to the security, stability and prosperity of Nigeria in the 1980s (Shehu, 2006).

There are many law enforcement or security agencies created by government in Nigeriato meet certain and specific situations or purposes or to deal with various issues and problems of concern to government or on matters bothering on specific law enforcement and security issues. Some of these agencies are: the Nigeria Police force; the State Security Service; National IntellegenceAgency;DefenceIntelligeceAgency;NationalDrugLawEnforcementAgency;

Code of Conduct Commission; Independent Corrupt Practices Commission; and the Economic and Financial Crimes Commission, among others.

Of the numerous law enforcement or security agencies in Nigeria, perhaps, the EFCC is one of the most important in terms of the perception of Nigerian public, government, international donor agencies, and the international community. It is for this reason that this important organization captivates the attention of all and sundry and has gingered the need to study it. Thus, the need to take a scientific appraisal, evaluation, assessment and scrutiny of its critical role and how it has met that role in Nigeria bearing in mind that the EFCC is a very important state institution in the fight against economic and financial crimes of corruption.

It has been estimated by the Economic and Financial Crimes Commission incollaboration with the World Bank that from independence in 1960 to 1999, Nigerian public officials have looted or wasted more than $440 billion of public resources. This amount is equivalent to all the Western aid given to Africa in almost four decades and also equivalent to 300 years of British aid for the continent. It is also said to be six times the American help givento post-war Europe under the Marshall Plan for the reconstruction of a devastated Europe in the aftermath of the Second World War (Blair, 2005 & Ribadu 2009:2). The World Bank has estimated that more than US$ 1 trillion is paid in bribes each year and that countries that tackle corruption, improve governance and the rule of law could increase per capita incomes by a staggering 400 percent (World Bank, 2004).

In Nigeria, the anti-corruption campaign remains a project in questionable progress.There has been a global cry and coordinated efforts to tackle this social evil through the creation and implementation of anti-graft laws and policies across nation. The critical problem of this studythereforeistoappraisetheperformanceoftheEconomicandFinancialCrimes

Commission from its inception in 2002 to 2015; with a view to ascertaining whether it has being able to meet the aims, missions and vision for its creation. Thus, the study seeks to explain the prevalence of corruption, despite the efforts by successive governments to reduce it. It is against this background that the study appraises the Economic and Financial Crimes Commission in its fight against corruption since inception in 2002- 2015.

1. ObjectivesoftheStudy

The primary objective of this study is to appraise the Economic and Financial Crimes Commission (EFCC), and to evaluate its performance in Nigeria. The specific objectives are to:

Examinethecausesofeconomicandfinancialcrimesofcorruptionandassessthe measures adopted by the government to combat it in Nigeria.
Assesstheextenttowhichthepoliticalleadershiphasbeenabletodemonstrateand sustained its commitment in the fight against corruption in Nigeria.
ExaminehowfartheEFCCachievedtheobjectivesforwhichitwasestablished.

1. ResearchQuestions

Thisresearchisguidedbythefollowingresearchquestions:

WhatarethecausesofeconomicandfinancialcrimesinNigeriaandthemeasures adopted to combat corruption in Nigeria by the government?
Towhatextenthasthepoliticalleadershipbeenabletodemonstrateandsustainedits commitment in the fight against corruption in Nigeria?
TowhatextenthastheEFCCachievedtheobjectivesforwhichitwasestablished?

1. SignificanceoftheStudy

Achieving significant results in curbing the incidence of corruption hinges on what is done,howitisdone,whenitisdoneandwhomitistargetedat.Itisobviousthatmostanti-

corruption strategies in Nigeria have failed to achieve their stated objectives over the years. It therefore requires concerted efforts by all to contribute to the success of this all-important issue on which the survival of our hard earned democracy depends. Such efforts can only be meaningfuliftheystem froman empiricalstudyinorder tosupportthe governmentto realizethe global lofty objective of good governance.

Thisresearch unveilsproblem areasinthe implementationof anti-corruptionstrategies as well as proffer policy recommendations that would benefit both the governments and relevant anti-corruption agencies in their quest for ensuring the consolidation of democracy and good governance in Nigeria. It is the intention of the study to stimulate further investigations into the problem of persistent rise in economic and financial crimes of corruption incidence in Nigeria inspite of efforts by government towards ameliorating them in the country.

The study is expected to be a concerted effort to identify, articulate and highlight the existence,thecausesandeffectsoffinancialandeconomiccrimesandcorruptioninNigeria.The research is expected to be part of data bank for operators as well as policy makers in anti- corruption strategies formulation.

On the intellectual plane, it will contribute to knowledge by adding to the existing literature on this topic and serve as a base for other researchers who would like to carry out further studies in this field of public policy study.

1. ScopeoftheStudy

This research is specifically on the appraisal of the Economic and Financial Crimes Commission (EFCC) in Nigeria between 2002-2015. This period is important because it coincidedwiththebeginningofdemocraticruleafteralongperiodofmilitaryinterregnum. The choice of this topic is also predicated on the fact that corruption has been a serious threat to

the consolidation of a viable democratic system in Nigeria. The scope of this study basically searchlight the activities of the EFCC since inception. Undertaking a post-mortem study of how far the agency has realized its goals becomes imperative.

1. LimitationsoftheStudy

This study was limited by time and financial constraint particularly because of the cost intensive nature of this type of project which requires a lot of finances for execution. Therefore, the absence of a major research grant poses a great problem. The attitudes of some of the respondents because of the peculiarity of the research definitely constitute a limiting factor that the researcher faced in carrying out this study. These shortcomings however, did not affect the overall result of the research since a detailed method of data collection was employed by the study and the instrument of analysis that was used definitely ensured objective and qualitative analysis of the problematique.

1. ResearchMethodology

1. 1. ResearchDesign

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