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TITLE PAGE
POLITICAL ECONOMY OF CORRUPTION AND REGULATORY AGENCIES IN NIGERIA: A FOCUS ON THE ECONOMIC AND
FINANCIAL CRIME COMMISSION (EFCC), 2000-2010
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APPROVAL PAGE
This is to certify that this research work has met the requirements of the Department
of Political of Science, for the Award of a Masters of Science (M.Sc.) Degree in Political
Science of the University of Nigeria, Nsukka, and is approved.
BY
-------------------------- --------------------------
Prof. Jonah I. Onuoha Date
(Project Supervisor)
------------------------- -------------------------
Prof. Obasi Igwe Date
Head of Department
-------------------------- ---------------------------
Prof. Emmanuel O. Ezeani Date
Dean of Faculty
External Supervisor ---------------------------
Date
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DEDICATION
To the
Well Being and Good Health of my Parents,
Mr. and Mrs. Nkemegbunam Anselem Uzendu.
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ACKNOWLEDGEMENT
To the Glory of God. I am immensely grateful to my supervisor, Prof. Jonah I.
Onuoha whose effort ensured the success of this work. Prof, your cordial relationship with
your supervisees and the students at large, speaks much of your professionalism and kind
spirit, I cannot thank you enough.
To my parents, Mr. and Mrs. Nkemegbunam Anselem Uzendu, my siblings (Henry
Chukwujike, Colombus Udochukwu, David Ifeanyi, Rosemary Ifunanya and Augustine
Chimobi), my uncles and aunt, (Boniface Uzendu, Okezie Uzendu and Marcy Ndu, nee
Uzendu and their respective families) etc, I appreciate all of you for seeing me through to
the end of the turnel, as the light shines upon me now.
To my room-mates, friends and well-wishers: Ukanwa Oghajie E., Ogbu Ejike C.,
Adibe Raymond C., Eze Ojukwu Onoh, Okoye Kingsley E., Anya Okoro Ukpai, Ukeka
Chinedu D., Dickson Agwuabia, Chris Onyekachi Omenihu, Sampson Eziekeh,
Ogochukwu Nnaekee and host of others whose influences have helped to shape my life to
better. I appreciate the communal living and mutual understanding that exist amongst us.
Your company provides me comfort and, makes me feel at home away from home. Thanks
to all of you for helping me overcome part of my greatest life challenges. I cannot still forget
my special friend, Miss. Roseline Akuabia Emoh, please thanks for everything. All the 2009
Post Graduate Students of the University of Nigeria, particularly those from the Department
of Political Science, I wish all of you the best.
I extend my gratitude to all the lecturers and staff of the political science department
as well as all the staff of Nnamdi Azikiwe Library, University of Nigeria, Nsukka for their
big assistance. Please bear with me if your name does not appear on this page, our space is
limited. Always remember that you will remain on the limitless page of my heart till
eternity.
Uzendu Anselem Chinedu.
Department of Political Science.
University of Nigeria, Nsukka.
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LIST OF TABLES
Table 1. Logical Data Framework (LDF) for the Study--- --- --- --- 26
Table 2. Abacha’s Loot Profile--- --- --- --- --- --- --- 38
Table 3. Individual Loot Profile in Naira--- --- --- --- --- --- 41
Table 4. Nigeria’s Position in Transparency International Perception Index --- 78
Table 5. Twenty-One Wire Transfer by Nnamani in Foreign Banks--- --- 83
Table 6. Loot by Public Officials Discovered in Foreign Accounts --- --- 86
Table 7. EFCC’s High Profile Cases in Nigeria--- --- --- --- --- 96
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ABSTRACT
This study is concerned with the political economy of corruption and regulatory agencies in Nigeria. It focused on the critical assessment of the performance of the Economic and Financial Crimes Commission (EFCC) in its fight against political corruption in Nigeria since its creation. Thus, this study is guided by the following research questions: (1) Has the EFCC accomplished its statutory mandate in terms of reducing the rate of political corruption in Nigeria between 2000 and 2010; (2) To what extent does dual legitimacy of criminality influence the performance of the EFCC in Nigeria. To achieve our objectives of this study, we relied on the observational technique and documentation as our method of data collection. This implied that data were generated from the secondary sources, which were analyzed with the use of qualitative descriptive analysis as well as table presentations and percentages. We adopted the theory of social production and reproduction as the viable framework of analysis that explained how the activities of the EFCC have been constrained by certain environmental conditions. We observed that the EFCC has remained a tool of social and economic domination of the ruling class over the rest of the society. The study concluded that political corruption will remain unabated in this current social structure of dependence of the EFCC on the ruling class and that EFCC has not accomplished its statutory mandate in terms of reducing the rate of corruption in Nigeria. Unless these environmental conditions change, the EFCC will not accomplish its statutory obligation. However, we recommend that there is need to review the penal codes in our constitution, which will stipulate in clear terms the procedure and punishments for all categories of corrupt practices especially within the public sector.
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TABLE OF CONTENTS
Title Page--- --- --- --- --- --- --- --- --- --- --- i
Approval Page--- --- --- --- --- --- --- -- --- --- ii
Dedication --- --- --- --- --- --- --- --- --- --- iii
Acknowledgement --- --- --- --- --- --- --- --- --- iv
Abstract --- --- --- --- --- --- --- --- --- --- v
List of Tables --- --- --- --- --- --- --- --- --- --- vi
Table of Contents --- --- --- --- --- --- --- --- --- vii
CHAPTER ONE: INTRODUCTION
1.1 Background to the Study --- --- --- --- --- --- --- 1
1.2 Statement of Problem --- --- --- --- --- --- --- --- 6
1.3 Objective of Study --- --- --- --- --- --- --- --- 8
1.4 Significance of Study --- --- --- --- --- --- --- --- 8
1.5 Literature Review --- --- --- --- --- --- --- --- 9
1.6 Theoretical Framework --- --- --- --- --- --- --- 20
1.7 Hypotheses --- --- --- --- --- --- --- --- --- 24
1.8 Method of Data Collection --- --- --- --- --- --- --- 24
1.8.1 Method of Data Analysis --- --- --- --- --- --- --- 25
1.8.2 Logical Data Framework for the Study --- -- ---- --- --- 26
CHAPTER TWO: A HISTORICAL OVERVIEW OF CORRUPTION AND THE ORIGIN OF ECONOMIC AND FINANCIAL CRIME COMMISSION (EFCC) IN NIGERIA. 2.1 Introduction --- --- --- --- --- --- --- --- --- 28
2.2 A Historical Overview of Corruption in Nigeria --- --- --- --- 28
2.3 The Origin of EFCC in Nigeria --- --- --- --- --- --- 42
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2.4 Establishment of the EFCC Act 2002 --- --- --- --- --- --- 44
2.5 The Institutional Structure of the EFCC --- --- --- --- --- 47
CHAPTER THREE: EFCC AND POLITICAL CORRUPTION IN NIGERIA: THE JOURNEY SO FAR.
3.1 INTRODUCTION --- --- --- --- --- --- --- --- 51
3.2 EFCC and Political Corruption in Nigeria --- --- --- --- --- 52
3.3 EFCC and Obasanjo’s Anti-Corruption in Nigeria --- ---- --- --- 55
3.4 EFCC and Yar’dua War Against Corruption in Nigeria --- --- --- 60
3.5 EFCC and Plea Bargain Issue in Nigeria --- --- --- --- --- 62
CHAPTER FOUR: DUAL LEGITIMACY OF CRIMINALITY AND THE PERFORMANCES OF THE EFCC IN NIGERIA.
4.1 INTRODUCTION --- --- --- --- --- --- ---- --- 72
4.2 Dual Legitimacy and Political Corruption in Nigeria --- --- --- --- 72
4.3 The Performance of EFCC in Nigeria --- --- --- --- --- --- 76
4.4 The Ineffectiveness of EFCC in fighting Corruption in Nigeria --- --- --- 91
4.5 The EFCC’s high Profile Cases in Nigeria --- --- --- --- --- 95
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Summary --- --- --- --- --- --- --- --- --- --- 113
5.2 Conclusion --- --- --- --- --- --- --- ---- --- 116
5.3 Recommendation --- --- ---- --- --- --- --- ------ --- 117
BIBLIOGRAPHY --- -- --- --- --- --- --- --- 120
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CHAPTER ONE
1.1 BACKGROUND TO THE STUDY
The Economic and Financial Crimes Commission (EFCC) is one of the most
acclaimed anti-corruption agencies in Nigeria saddled with the responsibility of fighting and
reducing the rate of political corruption (financial crimes) in Nigeria. Over the years, their
activities and performance have raised unending debate and intellectual controversies on
whether they have actually performed or not based on the accomplishment of their statutory
mandate since their creation. Hence, there is no agreement among scholars and
commentators on the performance of EFCC. Consequently, two contending intellectual
divided or schools of thought have emerged to explain the nature and character of the EFCC
and how their performance have affected the state over the years in terms of reducing the
rate of corruption or not. The first is the bourgeois school while the second is the radical
school of thought.
Essentially, the bourgeois scholars believe that the EFCC is instituted to curb the
menace of corruption in Nigeria. According to them, EFCC has succeeded in accomplishing
its statutory mandate by fighting and reducing the rate of corruption involving financial
crimes in Nigeria. One of the proponents of the bourgeois scholars, Babafemi, in Alli
(2010:1) observed that the EFCC is an enduring institution that is better equipped to deal
with all forms of economic crimes in a way that will impact and enhance positively a
sustainable national development. He further observes that since June 2008, when Mrs.
Farida Waziri assumed office, she had been doing a lot with her team to break records and
surpass past records. That in both administrative and operational angles, EFCC has placed
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several measures and strategies to chart a new course for the anti-graft agency, but has
equally and painstakingly commenced processes of revitalization, restructuring, re-
orientation, repositioning and re-building among others to build an institution around
structures and processes rather than individuals. In line with the above, other bourgeois
scholars believe that EFCC, as an agency established to fight corruption has indeed taken up
the gauntlet in reducing the rate of political corruption in Nigeria. For them, generally,
EFCC has made tremendous success in accomplishing its mandate in terms of fighting and
reducing the rate of corruption in Nigeria.
On the other hand, the radical scholars are of the view that EFCC has not
accomplished its objectives in terms of curbing the menace of political corruption. For them,
EFCC has failed, it is seen as an instrument in the hands of the ruling class to fight and
dominate its oppositions whose interest is not in conformity with that of the ruling class. On
of the laudable proponent of the radical scholars, Adamu (2005:1) opined, reading “EFCC:
justice, not politically persecuted”, by one Yashau Shaib and published in the punch
newspaper of January 9, 2006, that:
I am compelled to make a comment. I wonder how one can commend government for the establishment of agencies and institutions whose creation is questionable. What is government’s ulterior motive behind the establishment of those agencies? But since we are in a democracy, we can’t do without having divers opinions.
Though the Olusigun Obasanjo administration, by some of its policies, might seem to love the values of democracy, It is quite glaring that it is afraid of its principles. For example, when the president instituted the Economic and Financial Crime Commission (EFCC) many Nigerians applauded his effort. The hope of Nigerians then was that all those who had hand in the looting of the nation’s treasury, thus depriving ordinary
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Nigerians their share of the national cake, would be brought to book, irrespective of their social, economic and political stand. While commending the acts of former police IG, Tafa Balogun, and the impeached governor of Bayelsa state, Dr. Diepreye Alamieyesiegha, in their totality, events around the EFCC have clearly shown that it is nothing more than a tool with which the government hunts and persecutes its political opponents.
Generally, the radical scholars believe that the EFCC has not accomplished its
statutory mandate; rather it is served as a tool of persecution of oppositions in the hands of
the ruling class.
For us, EFCC’s performance has not addressed the problems for which it was created. Thus,
we attribute this poor performance of the EFCC to certain environmental conditions which
influence their performance in terms of accomplishing its statutory mandate in reducing the
rate of political corruption in Nigeria. Such environmental conditions that impede EFCC’s
performance include Dual legitimacy of criminality and the irony or paradox o fighting
corruption by corrupt individuals. It is assumed that one does not make laws against his own
will. Unless these environmental conditions change, EFCC performance will not change
from what it is at present.
However, form the other side of the variables of this study, we will not fail to
understand that corruption is a necessary condition that gave birth to the establishment of the
EFCC. Corruption is not a recent phenomenon that pervades the Nigerian state. In all
ramifications, it is one fundamental problem confronting Nigeria today. Particularly,
political corruption has manifested in various means such as embezzlements,
mismanagement, nepotism, military coups, looting of public treasury, bribery, vote buying
and other abuses of office etc. Nigeria has been independent for 50 years now and recently
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celebrated her Golden Jubilee anniversary, which in my own opinion was a celebration of
poverty in plenty and continual success in dominance of the group that captured the state
shortly after independent. Nigeria had experimented about seven military and five civilian
administrations since independence and the high incidences of corruption in about all sectors
in the country pose a serious threat to development efforts in Nigeria.
Since the creation of modern public administration in the country, there have been
cases of official misuse of resources for personal enrichment. Hence, the rise of public
administration and the discovery of oil and natural gas are two major events seen to have led
to a litany ignoble corrupt practices in the country. Over the years, the country has seen its
wealth withered with little to show in living conditions of the average human being.
Following the stupendous oil wealth, comes political corruption, mismanagement
and incompetence in government. Corruption brought about instability, insecurity, and
failure of institutions. Hence, politics in Nigeria has become a do or die affair since political
power is now a strategy for stealing public funds. For instance, it is common practice for top
government jobs to be filled with cronies who serve as conduit for siphoning public funds to
foreign accounts.
As Dudley noted, that political power provides a rare opportunity to acquire wealth
and prestige to be able to distribute jobs, contracts, gift of money, etc, to allies (Dudley,
1982: 30-31). The implication of Dudley’s argument is that the communities and relatives of
the politicians who control political power support the stealing that is prevalent in the
political system since they are directly or indirectly, the beneficiaries of such political
corruption.
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Indeed, corruption is dangerous and inimical to the systemic existence of any polity.
It is socio-political, economic and moral malaise that may permeate and cripple, as a result
of its contagiousness and malignancy, the nerves of any polity. It is an intolerable
characteristic that should be discouraged in governance because once it sets into any part, it
automatically contaminates all the strata of the system’s multidimensional hierarchy in ways
symmetrical to the spread of a bush fire (Akindele, 1995:37).
Equally, Ifesinachi (2003:27), captured these debilitating effects of corruption in
terms of the argument on the prevalent social values, corruption appears to have overthrown
and defined commonsense and logic both in the public and private realm in some African
States like Nigeria. It is in recognition and the effort to stem these ugly trends that the
Obasano’s administration had responded by lunching a number of campaigns and strategies
against corruption. Meanwhile, despite the laudable measure and strategies by the
Obasanjo’s administration to curb corruption, the concerns of various eminent citizens and
scholars in the country and outside is that the previous regime left a horrendous stinking
legacy of covering up for current and potential looters of Nigerian treasury since it is those
who set up the regulatory institutions are still the same people that loot the public treasury.
The implication of this scenario is that the regulatory institutions will be ineffective
and weak. These facts have necessitated the background to the emergent of this research,
which we shall try to accomplish through the study of one of the mostly acclaimed anti-
corruption institutions, the Economic and financial crime commission (EFCC), and how far
their activities have hindered or helped to curb the incidence of political corruption in
Nigeria.
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1.2 STATEMENT OF PROBLEM
Political corruption is the major challenge facing Nigeria today, and its debilitating
ancillaries such as graft, nepotism, embezzlement, looting, abuse of office, etc. These factors
have stunned the growth of the country in all areas of her endeavors. In order to curb the
menace cause by political corruption in Nigeria, former President of Nigeria, Chief
Olusegun Obasanjo, in 2002, instituted the Economic and Financial Crime Commission
(EFCC), after other attempts to stem corruption had been proven abortive. Abumere, quoted
in Ezeani and Elekwa (2006:339), recollected that President Obasanjo had declared in his
inaugural speech on May 29, 1999 that “corruption, the greatest bane of our society today
will be tackled head on at all levels and there will be no sacred cows; nobody, no matter who
and where, will be allowed to get away with the perpetuation of corruption”. Meanwhile in
today’s experience, the reverse seemed to be the case. Observation proves that corrupt
public personnel are usually convicted when they have a contradicting interest with the
power that be.
Furthermore, political corruption is pervasive in Nigeria and has been
institutionalized such that not only that, officials are corrupt, but corruption is official
(Clark, 1995:125). Corruption has taken different forms and shapes in Nigeria such as
endemic planned and developmental corruption (1991:47), to comment with obvious
impatience that these forms of corruption, notably; endemic, planned and developmental
corruption is a classic vicious circle capable of destroying Nigeria completely.
However, the effect of political corruption in any given society can never be over-
emphasized, especially as in the case of contemporary Nigeria where political corruption has
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eaten deep into the fabrics of our national life and where political power is used to
expropriate loot and plunder public wealth. Public officials use their positions to extend
undue favour to their Kith and kin as well as their political loyalists. Worse still, the
Nigerian state is deeply immersed in political corruption (Okolie, 2003:338).
Despite the enormous and detailed investigations conducted into this work, there still
exist hitherto some gap, lapse and unanswered questions by scholars and commentators to
which this research hopes to address and therefore, add to the incremental body of
knowledge and debates towards finding a viably inbuilt mechanism which can effectively
checkmate the incidence of political corruption and fraudulent financial transactions within
the public sector. Thus, there are two major strands of analysis which help to explain our
problematique. The first is to assess in EFCC performance in accomplishment of their
statutory mandate in curbing corruption in Nigeria. The second is the of dual legitimacy of
criminality. In this regard, the members of the ruling class legitimize corruption on one hand
and the members of the communities encourage political corruption since they lack the
moral and legal support against corrupt officials. Political power provides the public
officials with the opportunities to extend undue favour to their communities; distribute jobs,
contracts and gift of money which they got from illegitimate means. On the other hand, the
second strand of analysis is the strong and ineffective state in Nigeria. This implies the
conditions of political instability, incompetence in government, low productive forces,
insecurity, failure of institutions, low level of transparency and accountability in the
Nigerian state.
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These problems are the central concern of this emergent research, and can be
specifically stated in the form of those research questions below:
1. Has the EFCC accomplished its statutory mandate in terms of reducing the rate of
political corruption in Nigeria from 2000 and 2010?
2. Does the dual legitimacy of criminality influence the performance of EFCC in
fighting political corruption in Nigeria from 2000 and 2010?
1.3 OBJECTIVE OF STUDY
The central concern of this study is to assess dispassionately the achievement of the
Economic and Financial Crimes Commission (EFCC) in their fight against political
corruption in Nigeria. Therefore, the specific objective of this study includes the following:
1. To examine if the EFCC has accomplished its statutory mandate by reducing the rate
of political corruption in Nigeria from 2000-2010.
2. To assess how the dual legitimacy of criminality has influenced the performance of
the EFCC in Nigeria from 2000-2010.
1.4 SIGNIFICANCE OF STUDY
The significance of this research will manifest in both theoretical and practical
levels, since it will be useful to our society where political corruption is pervasive. At the
theoretical level, the study will provide with scholars and commentators, the idea and
knowledge to understand the debilitating damage and various dimensions corruption has
taken in Nigeria society. Also, contribution from this study will not only consolidate the
existing body of knowledge in our discipline but will also serve as a veritable reference
material to students, academics and researchers who have interest on this issue. This
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research work will equally serve as a good reading material for all the people who desire to
enrich their knowledge.
In the practicable aspect, the value of the study will at the first place, provide
Nigerians with the fundamental reliability and understanding of the unabated nature of
political corruption in Nigeria, thereby keeping them disposed to contribute their quotas
towards its reduction. Secondly, the study will facilitate the process of restoring sanity in
this society by serving as a basis for building structures that will promote an additional
checks and balances alongside other existing structures.
Finally, this study when implemented will help to restore confidence in our
government as well as the economy. This is because the cost of government will be reduced
and funds hitherto diverted for private use will be made available for our infrastructural
development which in turn will create an enabling environment for economic growth in the
different sectors of government.
1.5 LITERATURE REVIEW
For the purpose of accommodating the two variables of the hypotheses as contained
in this research, this literature review will be divided into two themes; the first theme will
evaluate the existing literature on political corruption in Nigeria. The second theme will
review author’s works on the operation of the regulatory institutions like the EFCC in fight
against political corruption in Nigeria.
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Political Corruption in Nigeria
An attempt has been made by Ikejiani-Clark, to trace the origin of corruption in
Nigeria to the on set colonialism, which bastardized the traditional Nigeria values.
According to her, traditional Nigeria society was fairly well organized around such values
and ideals as honour, prestige, respect for elders and constituted authorities, integrity and
public interest rather than selfishness (Clark,1995:128). In her analyses of political
corruption, she sees corruption as an inducement in cash or kind to secure services or goods
from public officials or other agencies through illegitimate, unlawful or irregular means.
Consequent upon the bastardization of these values that regulated individual and
group conduct of private and public lives, the way was paved for political corruption which
as at then simply found expression in giving to court carks and interpreters in order to revert
justice. Ikejiani-Clark further examined how previous regimes have tackled political
corruption in the past and postulated that since post-independent, Nigeria consolidated these
colonial imposed values, Nigeria needs a reform of her political structure and institutions.
Obviously, one of the laudable hallmarks of Ikejiani-Clark’s perspective to corruption in
Nigeria is its historical specificity. Meanwhile, her appraisal of how corruption has been
tackled in Nigeria was restricted to previous governments and regimes only thus, inadequate
in our explaining the basic concern of this study.
Aluko (2002:393-402), critically examined how corruption became institutionalized
and manifested mostly in the political arena. Its approach was from a sociological
perspective as he sees corruption largely as a social problem and not emanating from
individual disposition. He concluded that the nation as such has the responsibility to educate,
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mobilize, socialize, enlighten and sensitize its citizens towards a tradition of honesty,
excellence, diligence, integrity, honour, reputation, good name and other moral virtue that
will lead to the establishment of a new social order.
Although, Aluko’s recommendations are quite commendable, it however, lacks
practicability in Nigeria as both past and present leaders had been bereft of such self-
discipline and indeed has remained the source of corruption.
Equally, as observed by Ugwu (2002:23), the nation was deeply immersed in
corruption arising from poor and weak leadership, which regarded some people as sacred
cows. The result was embezzlement and defraud “kick back and kick front”, rigging
election, selection and not election syndrome, 10% to be paid to a government official for
any contract awarded, murder cases during election to public posts, sectionalism, favoritism,
nepotism, sex scandal, incarceration of innocent but vociferous citizens etc.
These were the offspring of political corruption in Nigeria. The blazing heat of the
fire of political corruption sent so many Nigerians packing. Hence, Odey in 2001, wrote that
“politically, the turmoil, the repression and the general insecurity that pervaded the country
forced thousands of Nigerians to flout all international border laws and get out of Nigeria by
hook or by crook. As a result, Nigeria’s image suddenly slumped to infamy” (Odey,
2001:41-42), quoted in (Ugwu, 2002:23).
In the forefront of the critic against political corruption in Nigeria, Achebe (1983:1)
has this to say; “there is no problem with the Nigerian soil, climate, water or even air, the
only problem facing Nigeria is the problem of leadership”. The corrupt practices by the
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Nigerian leaders at all levels of government have been the major reasons for the country’s
underdevelopment. Corruption is a cankerworm that has eaten deep into the fabrics of our
leaders, to the extent that when they go to bed, they go with corruption, they dream
corruption, they think corruption, they eat corruption, live with corruption and practice
corruption at every moment. Corruption has become a culture in the Nigerian society and the
people celebrate it. Any leader that wishes to uphold the dignity of transparency,
accountability and due process is seen as an uncivilized person, and sabotage (Achebe;
1983:3). Achebe actually captured the debilitating incidence of political corruption, but
failed to proffer solutions on how to revolutionalize the mentality of the people as well as
enhance mechanism for fighting corruption.
Apparently alluding to the result of a double standard approach to anti-corruption
measures, Klitgaard, (1998:55) noted that if people especially the big shots get away with
political corruption, the others would not be afraid to do it because after all, the commission
would not remove the big shots and may be, is not sincere. Constantly, Klitgaard, observes
that a double standard approach is an incentive to corruption and this fact cannot be denied.
Be that as it may, Klitgaard’s approach is contradistinction to the basic concerns of this
study, which aims at determining if the EFCC fight against corruption actually reduced the
rate of corruption in Nigeria since its creation. Daniel Kaufmann, argues that despite myriad
contributions on this topic by various authors, serious unresolved questions and debates still
exist not only about the importance of governance and corruption but also about the
unwillingness and ability of the international community including the private sectors to
help countries improve in these areas. He equally presented eight myths, which are very
helpful in resolving some misunderstood issues concerning governance and corruption. His
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work therefore, focused on the intervention in the area of transparency reform complimented
by improvement in freedom of the press and gender equality and when implemented such
reforms could have a major impact on improving governance and anti-corruption.
(Kaufmann, 2002:9-24).
The 2001 transparency international (TI) corruption perception index lists Nigeria as
the second most corrupt country in the world behind Bangladesh. Nigeria alone is reported
to be responsible for over 30% of the incidence of corruption in Africa. The same report
notes that corruption in Nigeria has accelerated since the civilian government of Obasanjo
came to power from 1999-2007. Staggering $36 billion in public money is report to have
disappeared with a few traces. (Business in Africa, December 2002/January 2003:6).
Robert Payne in 1975 raise doubts as to their effectiveness in checkmating the
incidence of corruption society and pointed out that in both cases, of the “corruption and
decay sets in first at the top” this is the head in the case of the corpse and the leadership in
the case of the society. According to Payne (1975:4), the brain cells are only alive for four
(4) minutes after the head had stopped beating… and even though the heart beat may be
revived, the infinitely complex machinery of the brain begin to be dismantled within four
minutes and exists no medicine is capable of reviving the dead man. But unlike the corpse,
Payne (1975:4) observed that “societies afflicted with it (corruption) sometimes yield to
treatment but the cure involves a radical re-orientation of the society away from the sources
of corruption”.
Deriving from this, Payne (1975:5), admonished that “there is only one battle cry
against corruption and that is, resist to the uttermost as you would resist death itself”. But
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this, according to Payne “is only possible when we help one another with all our strength
because, the intensity of life is the intensity of helpfulness and the ceasing of help is what
we call corruption” (Payne 1975:5).
Still on political corruption, Shah (2006:14), provides one of the most elaborated and
extensive research, dealing with a wide range of issues on the causes and possible solutions
to corruption. A critical examination of his work reveals that “localization of power helps to
break the monopoly of power at the national level by bringing decision making closer to the
people” (Shah, 2006:14). Also he noted that this measure strengthens government
accountability, since the citizens can then monitor the performance of government officials
and equally demand corrective actions. He however, pointed out that in such areas where
feudal and industrial interest dominate and institution of participation and accountability are
weak and political interference in local affairs rampant, localization may increase
opportunities for corruption. He maintained that rule of law and citizen’s empowerment
should be the priority in any reform effort.
Nonetheless, Achebe (1983:38), wrote that the corrupt nature of the Nigerian society is such
that keeping an average Nigerian from being corrupt is like keeping a goat from eating yam.
Corruption in Nigeria has passed the alarming and entered the fatal state; Nigeria will die if
we keep pretending that she is slightly indisposed.
The above statement seems to suggest that corruption is inherent and quite inevitable
in the nature of Nigerians. But is it really correct? Perhaps, if we were fatalists or were to be
compelled to believe in predestination, that line of argument could have been seen to be
sound, but since it is not an established case that corruption is naturally inherent on inborn in
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human beings, Nigerians cannot be exceptional since they are not naturally or fundamentally
different from other human beings.
Equally, following Momoh (1991:115), a corrupt practice can sometimes be a sole
undertaking as in some cases of embezzlement of public funds where an official uses his or
her position to swindle the nation or his employers. But we will take an ideal corrupt
practice to be one which at least involves two individuals. The first individual involved in
the corrupt practice is the one who accepts something in the form of cash, presents, gifts or
bodily pleasures in order to perform an act.
Momoh (1991), further maintained that in so far as the business of corruption is
concerned, the stronger party, mentioned above, is always referred to as the one who
occupies the strategic position to perform or cause an act in question to be performed,
whereas the second individual, usually referred to as the weaker party is the one in need for
favour, who is on the other hand gives something in the form of cash, presents, gifts or
bodily pleasures in order to induce the performance of an act. In essence, both parties are
guilty of corruption and ought to be punished by the law of the land. But for the fact that
corruption has been taken to be part of life in Nigeria, the perpetrators of the act are
indirectly permitted to celebrate with impunity and thereby propagate the erroneous
impression that corruption is a value to be cultivated and appreciated in Nigeria.
Corruption triumphs in Nigeria because of the desire to get rich quick that has been
prevalent among Nigerians. It is no news any longer to hear that policeman, directors,
teachers and even traditional rulers can openly and unashamedly demand for and accept
gratifications of different kinds before doing the whatever they are supposed, or in some
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cases, genuinely employed to do for the development and progress of their country.
Moreover, there is no doubt that a number of factors are instrumental to the lingering crises
of corruption among the Nigerian populace. However, the basic and most central to the
causes of this phenomenon are due to lack of exemplary leadership, greed and inordinate
ambition for material wealth, power and glory. There is also a great deal of support by the
government authorities. Therefore, it is true to say that one of the most agonizing aspects of
Nigeria’s problems that has actually given license to corruption is the problem of ineffective
leadership. For some decades, Nigeria has not been opportune to enjoy the dividends of
good and exemplary leadership, be it military or civilian, who have the interest of the people
at hearth and also ready to sacrifice personal gains for the greater number of citizens.
Meanwhile, on critical evaluation of his argument, it is obvious that his position were
valid but he, however, failed to advance any particular method through which measures he
outlined can be achieved and sustained. This becomes necessary based on the fact that those
principles are usually accepted by every government but are hardly put into practice. To this
extent, his view has failed to address the problem in this research.
Regulatory Institutions on Corruption in Nigeria
Iheanacho, (2005:14) made a critical examination of the speech by Justice Akanbi
and lamented on the abysmal performance of the anti-corruption commission, The
Independent Corrupt Practices and other related offences Commission (ICPC), blaming it
on poor funding, limited jurisdiction power, corrupt and opaque judicial system. Iheanacho,
therefore, wonders how it has all these landmines buried along its way an administration that
says one thing to the International Community and does another thing at home. As a
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solution, he advocated for an anti-corruption seats in the executive council meeting and
broadening the scope of those that should be investigated by the commission regardless of
their position.
The major flaw in his work had been his belief that such government that is deeply
involved in corrupt practices will be willing to constitute any genuine institution that will
have the power to subject for investigation. Hence, his stand is logical inadequate for this
work.
Invariably, Umez (2000:36-38), began by arguing against the assumption that
corrupt leaders cannot address the fundamental problem of why Nigerian politicians and
administrators are corrupt. Hence, it is already obvious that most of those leaders were
corrupt before they assume public office. For him, a better and more comprehensive focus
should be on what are the sources of corruption and ways of eradicating them. In some, he
argued that “the prevalent people’s value system is mostly responsible for the leadership
corruption, which in turn produces problem of development in Nigeria” (Umez, 2003:38).
Although, his analysis is both correct and useful but it is however, difficult to clearly
explain, following his argument why, despite all the publicity and mass orientation, political
corruption still persist. Therefore, in the context of this work, his views are equally
considered inadequate.
In order to evaluate the anti-corruption records of Obasanjo’s administration, Olori
and Adams (2005:7), listed a number of ministers that have been relieved of their positions
following certain allegations of political corruption. In any case, their general assessment on
the performance of the regime in combating political corruption was that it has been highly
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ineffective and in their own words, “a mere effort by Obasanjo to boast his waning
popularity” (Olori and Adams, 2005:7). Having provided these insights, they failed to
categorically state any policy that can make an impact towards a sustainable fight on
corruption.
Ribadu N. in 2004, outlined some of the difficulties facing the Economic and
Financial Crime Commission (EFCC), which began with a brief discussion on the state of
political corruption in Nigeria and thereafter focused entirely on legal and prosecution
difficulties hampering on the activities of the commission. The basic problem with the
analysis is its limitations in tracing the actual cause of political cause and its impact in the
country. Besides, this points a critical examination of the Act Establishing the Commission,
which reveals whole lot of contradictions.
In effect, his focus is on prosecution rather than providing a preventive solutions or
addressing the causes of the problem. Thus, at best, his work can only provide a penal code
for corrupt practices which is basically outside the immediate concern of this study.
USAID, (2003) examines the impact of political corruption on development
challenges both in political and economic spheres, the outlined various anti-corruption
programmes which fall into a number of categories and their applications depending largely
on the types of corruption within a local environment. Furthermore, it views decentralization
of authority and responsibility as useful tool for achieving transparency and accountability.
However, this article failed to explain why these measures hardly bring any positive result in
most of the developing countries just like Nigeria. This entails that the analysis is
ineffective.
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On the 16th commonwealth law conference 2009 held between 5th-9th April, 2009 at
the Hong-Kong convention, it is noted, by the present chairman of the EFCC, Mrs Farida
WAziri, that the constraints of law enforcement within the rule of law are drawn mostly
from the work of the Economic Financial Crimes Commission in Nigeria. She further stated
that in fighting corruption, it is necessary to recognize that in the long run, what matters is
the institution and not the individual. It is therefore necessary to build institutions that will
last and sustain the fight. Where the institution is built around individuals, results tend to be
short lived in nature. Recognizing this fact, the EFCC has commenced the process of
building structures and process that will sustain the institution and outlive individuals. It is
important that the legal environment is sufficiently populated with requisite laws that will
facilitate that fight against corruption. The absence of specialized courts and legislation on
assets forfeiture tends to hamper the fight against corruption. Where an agency faces these
difficulties, it has to be at the forefront of championing the enactment of the requisite
legislations and the EFCC has been championing the enactment of key legislations like the
establishment of special Economic Crimes Courts and an Assets Forfeiture Act.
Having gone so far, we wish to summarize by stating that a number of scholars have
carried out investigations into the activities of the anti-corruption agencies including the
EFCC and other institutions on the mechanisms for reducing the rate of political corruption
in Nigeria, but none of these scholars has substantially analyzed why this measures had
failed and at the same time provide an alternative measure that can bring about positive
change. In other words, most scholars whose works were reviewed presented only
superficial views on the impact of the anti-corruption (EFCC) profile in Nigeria and those
that identified these weaknesses failed to proffer viable alternatives.
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Having rigorously and systematically x-rayed what scholars have examined and what
they have not adequately addressed in the existing literature as concerned with the
relationship between the EFCC and Political corruption in Nigeria, it is evidence to note that
scholars are yet to address in concrete terms the effects of political corruption on the EFCC.
The hallmark and the logic of the above is that there still exist hitherto gaps in the
existing literature with regards to Political corruption in Nigeria. From the foregoing, the
existing literature has failed to explain how the paradox of dual legitimacy of criminalizing
financial crimes and communally legitimatizing it affect the regulatory institution like the
EFCC and how the strong but ineffective state in Nigeria contribute to the increase in
political corruption. The imperative demand for filling these gaps forms the logical point of
departure for this study.
1.6 THEORETICAL FRAMEWORK
In studying how the activities of the government officials, who criminalize financial
crimes (political corruption) but also steal from the government coffers weaken the
regulatory agency like the EFCC and how the strong but ineffective state in Nigeria has led
to increase in political corruption, we will have recourse to the Marxist theory of social
production and reproduction.
Marx and Engels (1884:456), argued that ‘according to the materialist conception,
the determining factor in history is, in the last resort, the production and reproduction of
immediate life. But this in itself is of a twofold character. On one hand, the production of the
means of subsistence, of food, clothing and shelter and the tools requisite therefore; on the
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other hand, the production of human beings themselves, the propagation of the species. The
social institutions under which men of a definite historical epoch and of a definite country
live are conditioned by both kinds of production: by the stage of development of labour, on
the one hand, and of the family, on the other. The less the development of labour, and the
more limited its volume of production and, therefore, the wealth of society, the more
preponderantly does the social order appear to be dominated by ties of sex (Marx and Engels
1884:456-457).
The choice of this approach stems from the fact, as Ogban (2005:16) noted, that what
can be produced and reproduced at each point in time depends on a combination of the
quality of labour power (physical strength, knowledge and skills), non-human physical
resources for production (tools and objects for applying the tools and interpersonal relations
of production (who decide what is to be produced, exchanged, distributed and consumed, as
well as who does what and gets what is produced. In every social production and
reproduction system, there must be someone or people to make binding decisions on what is
produced, distributed, exchange and consumed by who and for who. Those who decide what
to produce also control the social production process and in their favour. They generally
have the most of what is produced and they are often satisfied than the other group within
the production process and tend to protect their position in the production process (Ogban,
2005:16).
The implication of the above is that a student of social phenomenon like political
corruption and its effects must pay particular attention to the totality of the relations of
production, which constitute the economic structure of society, the real foundation upon
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which arises the legal and political superstructures like the EFCC and (financial crime)
political corruption.
Thus, the productive system in Nigeria is largely based on rentierism. As a result, the
ruling class that control political power see the apparatus as instrument of primitive
accumulation. Hence, class relations both within the ruling class and between the ruling and
dominated classes in a peripheral economy like Nigeria is highly fractious and antagonistic.
The relation within the ruling class is factious because access to political power is not seen
to arise from the actual control of the social relations of production but a matter of
opportunity or sheer luck.
In this light, the social institutions of the state becomes a repressive instrument of the
advantage fraction of the ruling class in subjugating the rest of the society and fostering
primitive accumulation of the advantaged ruling class as well as protecting their relations in
the production process. EFCC, as an institution of the state, saddled with the responsibility
of fighting corruption has become notorious for double standard practices is its fight against
corruption. On the one hand, it has prosecuted many corrupt officials “whose interests or
activities have been perceived to threaten the interest (primitive accumulation) of the
dominant class. And on the other hand, it has conspicuously ignored or failed to prosecute
other corrupt officials whose interests are in harmony with that of the dominant class.
In this regard, the state apparatus (EFCC) and laws were manipulated in favour of
the ruling class’ interest and at the expense of the other classes within the state. Basically,
the logic of the foregoing is that the EFCC shall be conceived as the instrument of
domination in the hands of the ruling class who are the controller of the means of
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production. By implication, the regulatory institutions would be weak and ineffective. In
order to maintain the domineering influence of the ruling class, over the dominated class,
there would be a continuous primitive accumulation to strengthen the power. This implies
also that there would be increase in political corruption.
Thus, the inevitable tendency of one class to struggle for maintenance of domination
over another, accounts for the of dual legitimacy of financial crimes; first it is legitimized
within the ruling class and secondly, within the communities where the individual politician
comes from. This is in exemplified in reported cases in Nigeria where the EFCC fails to
prosecute the members of the ruling class whose interests are in conformity with the power
that be. Also, the community of such individual politician seems to encourage and protect
their member in phase of corrupt practices as in the case of Alamieyesiegha and Ibori.
Obviously, dual legitimacy of criminality and the irony of fighting corruption by those who
are assumed to involved in corrupt practices are does environmental conditions that has
greatly influenced the performance of the EFCC in accomplishing its statutory mandate.
Unless these environmental condition changes, EFCC will not make wave in achieving its
pursuit in terms of reducing the rate of financial crimes in Nigeria. Thus, the prerequisite for
the maintenance of domination is solely based on their position in relations of production
and the state power. Hence, the political corruption and the attendant regulatory institution
like the EFCC can be best appraised in the context of Marxist theory of social production
and reproduction.
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1.7 HYPOTHESES
This research is predicated on the following hypotheses:
1. The EFCC has not accomplished its statutory mandate in terms of reducing the rate
of political corruption in Nigeria from 2000-2010.
2. The dual legitimacy of political corruption has greatly influenced the performance
of the EFCC in its fight against corruption in Nigeria from 2000-2010.
1.8 METHOD OF DATA COLLECTION AND ANALYSIS METHOD OF DATA
COLLECTION
The reliability and validity of our data for this study lie in the use of observational
techniques and documentations as our major method of data collection. This implies that, in
the course of this research, data shall be gathered through secondary sources like materials
from the internet, relevant textbooks, magazines, newspapers, conference papers, seminar
papers, and statements of commentators as concerns the issue at hand. Equally, government
documents, white papers, a report of panels of enquire will also be of importance to this
research.
This method of data collection as adopted in this research will enable us to
understand the comparative opinions of scholars and commentators concerning the
operations of the Economic and Financial Crimes Commission (EFCC) and the incidence of
political corruption in Nigeria. However, in view of limited reliability of this method,
serious efforts will be made to ensure that scientific objectivity overrides the research
process.
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The use of documentaries forms our empirical source of data. This is because the use
of documents allows the researcher on areas where he cannot have access to the respondents
and this cannot study what is concerned with decisions and dispositions among government
officials. This goes on to rule out the possibilities of using survey methods like questionnaire
and interview methods. Irrespective of the above argument, interview and questionnaire
would have been conducted, but the actors may decline to respond. Reliable and expressible
documents are capable of bringing the significant information which cannot be gotten
through other methods. The issue is that where reliable documents exist, generations appear
more reliable than those emanating from limited data from the primary source.
Finally, another justification is that this method will assist to collect data stored in
files, government archives, libraries, bookshops and other international documents.
1.8.1 METHOD OF ANALYSIS
The nature of this study makes the use of qualitative descriptive analysis quite
imperative. This method of Analysis according to Asika (1991:118) essentially has to do
with summarizing the information generated in the research verbally. This method of
analysis is not limited as to the types of variables that may be measured or the context in
which the data are created or presented since other method of analysis like table presentation
is equally adopted. Thus, analysis of materials collected from secondary sources such as
textbooks, journal, article, magazine, newspapers, and overall documentaries etc, will
subscribe strictly to the use of qualitative descriptive analysis and tables.
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The use of these methods of analysis as stated above is to read meaning into the
information gathered from materials and other secondary sources as well as to categorize
data in their scale of measurement where necessary.
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1.8.2 LOGICAL DATA FRAMEWORK (LDF) FOR THE STUDY
S/n Hypothesis Variables Empirical indicators Theoretical framework
Method of data collection
Method of Analysis
Sources of Data
1. EFCC has not accomplished its statutory mandate in terms of reducing the rate of political corruption in Nigeria.
(1) EFCC’s statutory mandate.
Reduction of the rate of corruption in Nigeria
Prosecution of offenders.
Thorough investigation of corrupt cases.
Arresting the suspects. Recovery of looted
assets.
Theory of social production and reproduction.
Observation Documentaries
Qualitative Descriptive analysis
Tables presentation
Secondary source
Library Internet
materials Journals Newspapers/
magazines
(2) Reduction in the rate of political corruption in Nigeria.
More accountability. Increase in infrastructural development. Low level of corruption cases Low possibility level of
looting.
Theory of social production and reproduction.
Observation Documentaries.
Qualitative Descriptive analysis
Table presentation
Secondary Library Internet
materials Journals Newspapers/Magazines.
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S/n Hypothesis Variables Main indicators of the variables Data/sources Method of data collection
Method of data analysis
2. The dual legitimacy of political corruption has greatly influenced the performance of the EFCC in its fight against political corruption in Nigeria.
(1) Dual legitimacy of political corruption in Nigeria.
Corruption is legitimized within the ruling class and within the communities.
Lack of transparency and accountability
Political officials are corrupt but criminalize financial crimes.
Absence of moral and legal support against political corruption
General criminalization of corruption but communities embrace corrupt officials.
Secondary sources:
Library
Textbooks
Internet materials
Magazine
Journal
Documentaries
Observations
Tables
Quantitative Approach
Qualitative Descriptive Analysis.
(1) Influence of dual legitimacy of criminality on the performance of EFCC
Fear of prosecution of public officials
Favour in exercising duties Lack of autonomy of the regulatory
institution Dependency of the regulatory
institution Non-prosecuted cases of corruption Selective justice Preferential treatment to alleged
corrupt officials
Secondary sources
Library
Textbooks
Internet materials
Magazines
Journals
Documentaries
Observations
Tables
Qualitative descriptive analysis.
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CHAPTER TWO
HISTORICAL OVERVIEW OF CORRUPTION AND THE ORIGIN OF THE
ECONOMIC AND FINANCIAL CRIME COMMISSION (EFCC) IN NIGERIA.
1.1 INTRODUCTION
In this chapter, we shall evaluate the historical overview of the incidence of corruption
in Nigeria and the circumstances surrounding the emergence of the anti-graft agency like the
Economic and Financial Crime Commission (EFCC), as well as the institutional structure of
the commission.
Thus, the story of corruption in Nigeria is nearly apocryphal; it is indeed stranger than
fiction. Perhaps this account for why “some Nigerians are tempted to say that corruption
should be legalized so that its proceeds could be taxed. Some also believes that every Nigerian
is a corrupt individual while others say corruption is now adored rather than abhorred”.
Granted that corruption is a universal problem which was not invented in Nigeria but the
Nigerian environment has become a fertile ground where it is nurtured to the extent that the
few who are not corrupt are seen as odd people who are not “true” Nigerians.
2.2 AN OVERVIEW OF THE PHENOMENON OF CORRUPTION IN NIGERIA.
In Nigeria, corruption has grown alarmingly over the past two decades, though its
growth has been traced earlier through the court messages and native authority court members.
It was also during the colonial period that Dr. Nnamdi Azikiwe was charged for
mismanagement and corrupt practices in the African Continental Bank (ACB). However,
following the report of the commission which investigated the charges, it was revealed that the
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colonial office only wanted to embarrass Dr. Nnamdi Azikiwe and his supporters by the
trumped up charges of misconduct, hence no established case of corruption against him.
First Republic
During the first republic, chief Awolowo and some leading members of his party was
equally charged for corruption and diversion of funds into the party funds and also into private
use. The Cooker commission of enquiry investigating this allegation stated that the movement
of this money was effected through the marketing board and national investment and
Properties Company, which were government controlled. The commission condemned Chief
Awolowo’s direction of the use of funds, but exonerated him.
According to Ikejiani,(2001)
It is interested to note that in these cases, as in the case of Dr. Nnamdi Azikiwe, charges of corruption could not stick. The two foremost nationalists proved that they could use their positions to advance the interest of their people.
The change in orientation in leadership perhaps came with the stiff competition for
political power, which characterized the post-independence Nigeria, especially after 1963. It is
possible that the keen competition led to pervasion of rules to gain advantage and to the
damaging mobilization of ethnic primordial ties to ensure victory. Obviously, this
development necessitated the emergence of corruption in Nigeria public service.
Aguiyi Ironsi’s Regime (January – July 1966)
The first coup d’etat in Nigeria in January 1966, led by Major Chukwuma Kaduna
Nzeogwu was therefore, to rid Nigeria of a group of lawless and corrupt politicians who as it
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seemed then had misappropriated a lot of public funds. At this time, it was still unethical to
enrich oneself by illegal means. The actions of the government of Prime Minister, Sir Alhaju
Abubakar Tafawa Balewa confirms Fanon’s argument that;
In the African State, once independence has been won, government becomes no more than holding company of the national bourgeoisie intent only on sharing out the national booty.
The military regime led by Major General Aguiyi Ironsi was too brief to rid Nigeria of
the infectious national disease known as corruption. It was too brief for one to assess its
involvement in corrupt practices.
General Yakubu Gowon’s Regime (July 1966 – July 1975)
Against the expectations that the essence of Gowon’s regime would be to correct the
ills of the first republic, for which military had to intervene in the first instance, ironically,
Gowon’s tenure witnessed an unprecedented rise on corruption in the country’s body polity,
nurturing a coterie of powerful Nigerian millionaires- the veritable fat cats. For instance the
cement armada of 1974 is a ready example of corruption during the Gowon’s regime. The
federal government had ordered through the Nigerian national supply company two million
metric tones of cement from various countries. The Minister of defense also ordered for 16.23
million metric tones when it only needed 2.9 million metric tones for its project.
Although, the total cost per tone was only $40, Nigerians were paying $115 per tone.
This means that through this singular cement business, someone or some people were being
enriched by $75 per tone for 16.23 million metric tones. “This is hard to believe at a time when
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despite the oil boom workers takes home pay was nothing to write home about”. This example
is one out of the several cases of corruption during the Gowon’s regime.
Fortunately and unfortunately, the period of Gowon’s regime was the beginning and
probably the climax of ‘oil boom’ in Nigeria. A Central Bank of Nigeria annual report has it
that the value of Nigeria oil produce rose from N 262 million in 1969 to N 5356.7 million in
1974, the year just before the overthrow of Gowon. The masses of course never benefited from
this increase in revenue rather than continued to languish in poverty and deprivation in the
midst of plenty. According to Dudley, “the effect of the ‘oil boom’ was to convert the military
political decision makers and their bureaucratic aids into a new property owing, rentier class
working in close and direct collaboration with the sole aim of expropriating the surplus derived
from oil for their private and personal benefits”.
There are many examples of unfathomed greed among the officials of the Gowon
regime Mr. Ukpabi Asika as reported by New Nigerian of December 3, 1975, during his tenure
in office had acquired the following property illegally (a) Bladi Court, Warri valued at
N120,000; (b) Plot K, in the GRA, GRA Onitsha, valued at N 76, 000 (c) an apartment, 1229
Latorre on Spain (d) another property, in Spain, 9 Torremeloes Spain (e) a house, 6 Mayhaung
Road, GRA Kano. These in addition to several others landed property(s) scattered across
strategic locations in different cities with the country. The point here is that at that time, no
Nigerian could earn such a huge salary that could afford him all these, Asika was not alone,
some others had even more than this.
General Gowon, himself was corrupt and inefficient and so could not influence or
address the serious cased of corruption and indiscipline, Gowon only would say “if there be
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any of you who has abused in any way the confidence I and the nation response in him to
enhance some unworthy ends, I leave such person to his conscience and to God and to
posterity”.
General Murtala Mohammed/Olusegun Obasanjo’s regime (July 1975 – September
1979).
General Murtala Mohammed terminated the inefficiency of Gowon’s regime in July
1975. His was a corrective attempt and clean-up exercise involving the examination of the
assets of dismissed military governors and other public officers. Over 10, 000 persons (judges,
civil servants, university dons, military etc) were retired/dismissed from public services, for
reasons ranging from old age, health reasons, inefficiency, incompetence and corruption. And
in contrast to Gowon, he said that commissioners and public officers who were found to own
assets over and above what could reasonably be computed to represent their legitimate
earnings would forfeit all such excess assets by certification.
Some analysts believe that Obasanjo was not as firm as Murtala Mohammed and that if
he had maintained the spirit and tempo of his predecessor’s crusade, the story would have been
different today. Falana accusing Obasanjo of corrupt practices explained that as soon as
Murtala died the succeeding regime institutionalized corruption in Nigeria by promulgating
decree No 11 of 1976, public officer’s protection against Accusation. From all indication, the
regime of Obasanjo saw a rise in corruption too. Records showed that it was his tenure that N
2.8 billion oil money got missing from the NNPC account. Thanks to Justice Ayo Iriefe probe
panel, which believe in “let the sleeping dog lie”, thereby, covering the misdeeds of that
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regime. It could be because corruption lingered during the Obasanjo’s regime that the Shehu
Shagari’s regime picked and enlarged it.
Shehu Shagari regime (second republic).
According to Prof. Ikejiani, “the accounts of corruption during Shagari’s regime would
fill the archives if recorded”.
Corruption indeed held sway at all levels of government during his regime, large
mobilization fees were paid before any real work began and in most cases those projects are
never completed. There were alleged fraud in the account of the federal capital development
authority and disappearance of millions of naira worth building materials from the Nigerian
national supply company. The mysterious and epidemic fires in government buildings were
equally alleged to be deliberate plots to cover up corruption and fraud. Some of those building
included; ministry of external affairs, the thirty seven stories Lagos headquarters of Nigerian
external telecommunications and federal capital development authority Abuja. These fire
incidences happened when these establishments were under investigation of corruption and
financial fraud.
Furthermore, contracts amounting to N795 million for the Ajaokuta steel projects were
awarded in 1980 to Fougeroue (N329 million), DUMEZ (N179 million) and Julius Berger
(N297 million). These contracts were awarded with the understanding that Kickbacks and
commissions would be paid to the national party of Nigeria (NPN). The kickbacks paid
amounted to N59.625 million. The state governments were equally not left out in this looting
spray, notable among them was ‘JMB affairs’ and Anambra State government was ripped off
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by cross oceans limited London and some Nigerians. This amount was for the building of fiber
filament and carpet manufacturing complex in Ihiala a contract signed by the then Governor
Chief Jim Nwobodo in 1982.
The Gross Oceans limited never executed the contract despite the fact that it drew from Samuel Montaqu Bank the 7.36 million pounds from the loan provision made from the contract.
Mr. Audu Ogbeh, the then federal minister of communication revealed that the federal
government was loosing N50 million every month as salaries to workers that did not exist in
the post and telegraph department”. Also under the guise of state security Governors gulped
millions of taxpayer’s money by enriching themselves.
General Muhammed Buhari – December 1983 – August 1985
The generality of the masses had become fed up with the moribund second republic of
Shagari that had become rotten with corruption, hence he had learnt nothing from the past
mistakes of the first republic General “Buhari’s Maiden speech to the nation read in part as
thus”… the corrupt, inept and insensitive leadership of the past four years have been the source
of immorality and impropriety in our society since what happens in any society is largely a
reflection of the society. We deplore corruption in all its facets. Indeed corruption becomes a
deity, which was worshipped by the Shagari’s administration.
“The problems of Nigeria were too numerous that the Buhari’s regime was fully
engaged with things to do to put the nation on course”. His institution of the War Against
Indiscipline (WAI) was therefore, an ethical revolution aimed at inculcating in every Nigerian
citizen abhorrence for corruption and economic sabotage. The task was not easy and before the
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regime could grapple with the situation, surprisingly the General Ibrahim Babangida coup had
taken place. The Buhari regime could not be said to be visibly corrupt.
General Ibrahim Babangida (August 1985 – August 1993)
When General Babangida took over government accusing General Buhari of slow
‘pace action’ and high-handedness to the people of Nigeria thought that Babangida and his
men would tackle the hydra-headed problems of Nigeria particularly that of corruption with
speed and accuracy. On the contrary, Babangida provide himself in every thing he did as a
dribbler who turned the political and socio-economic clock of Nigeria backward by many
years. According to Nwala:
Under Babangida’s regime corruption became Nigeria’s nickname and young men carried their banner to the international scene through cocaine pushing, Advance fee fraud (called 419) and other sophisticated corrupt practices.
Babangida sins with regards to corruption are many and may outnumber those of
Abacha but because he is still alive, most of those atrocities are covered. Babangida,
capitalized on the Lukewarmness of Nigerians and brazenly spent public funds. He was the
first leader in Nigeria to maintain what he called “dedicated account” into which he channeled
the proceeds from the sale of 105,000 barrels of crude oil per day. It was not until his exit from
office that Nigerians were made to know that the ‘dedicated account’ were in actual sense
dedicated to Babangida.
It was Pius Okigbo the chairman of a panel of enquiry set up by General Sani Abacha
in 1995 to review the activities of the CBN that let the cat out of the bag. Babangida never
swindled in small units. According to Okigbo while submitting the report of the panel “… of
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the $12.4 billion that went into the report of the dedicated account when Babangida was in
charge, $12.2 billion much of which was a windfall from the Gulf war, was spent on what
could never be adjustment genuine high priority nor truly regenerative investment…
Babangida and Abdul Kadir Ahmed, the Governor of Central Bank, accounted to none of these
massive extra-budgetary expenditures”.
Babangida started the sabotage in the oil sector in Nigeria. In order to make smooth
business, which brings huge amount of money without tears, the refineries across the country
must not be in operation continuously. The NNPC was continuously manipulated so that it
continues to play the big fool. Any managing director who did not compromise was thrown out
of job. A good example was that of Aret Adams “he was relieved of his duty, because he
refused to be manipulated by Babangida”.
In the area of foreign debt, Nigeria was plunged into the heaviest debt during his
regime. An available record reveals that, the debt stock increased from $17.765 million in
1983 to $32.584 billion in 1995. The truth about these loans is that they were not used for
anything meaningful to the nation. IMF managing director Micheal Camdeseaus confirmed
this when he publicly declared that… much of the money borrowed by Nigeria from foreign
creditors went directly or indirectly into the foreign accounts of some Nigerians, others to
military spending, and some invested on unproductive projects.
It is no use enumerating the different choice properties illegally acquired by
Babangida, since the fact remains that in terms of physical cash he may be richer than the
country itself. Babangida’s regime marked in a certain tragic sense, the most outstanding point
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of decline of Nigeria’s value system. The height of corruption that saw him out office in 1993
was the annulment of June 12, 1993 presidential election.
His wife Mirian Babangida added more sophistication to the life-style of the Victoria
Gowon as a first lady. Through her self carved office of “Better life for rural women” she
siphoned the national treasury as much as possible because she was not accountable to anyone.
General Sani Abacha (November 1993 – June 1998)
According to Jibrim Ibrahim, “The Abacha regime was not just a continuation of
Babangida regime, it signaled a qualitative transformation of the Nigerian state into a fully
criminalized and indeed, rogue-state”.
The regime of Abacha built an empire for corruption while he and his cronies were
growing fatter and fatter from ill-gotten wealth the masses were growing leaner and leaner
from poverty and deprivation. General Abacha in addition to other avenues of looting has a
field day with the Central Bank of Nigeria (CBN). Billions of dollars and pounds were carted
away from the Central Bank since he was going for ‘money run’. Tell magazine reveals the
number of times Abacha directly took cash from the CBN as represented in the table below:
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ABACHA’S LOOT PROFILES
Date Amount ($)(000,000)
Feb,15, 1995 $ 4million and 2million
Feb, 17 1994 $ 4million and 2million
Dec, 29, 1995 $5 million
March 26,1996 $5million and £3million
May 29, 1996 £12.57 million
Sept.24, 1996 £50 million
April 22, 1997 £60 million
July 18,1997 $60 million and £30 million
Nov.29,1997 $120 million and £30 million
Dec.11, 1996 $50 million and £30 million
Feb.18,1997 $6 million
Feb.18, 1997 $3 million
March 3, 1997 $3.27 million
March 6,1997 $1.21 million
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April 29, 1997 £147 million
June 30, 1997 £4.9 million
August 8, 1997 $ 10 million
October 18, 1997 £12.3 million
October 21, 1997 £5.88 million
October 23, 1997 £14.76 million
October 29, 1997 £11.76 million
Nov.14,1997 $10 million
Nov.26, 1997 $24 million
Dec.10,1997 $24 million
Dec. 18, 1997 £6.15 million
This was how the treasury of the nation was looted and Nigeria then ranking very low
among the countries at the bottom of world’s poorest nations.
It is on record that Abacha and his family own 57 companies including the Chaouris, a
notorious oil bunkering company. Abacha perfected on what IBB started with the oil industry.
Things actually went off-hand that investigators preferred to refer to the then number one
Nigerian family as “the Abacha’s criminal organization”. Abacha’s wife Maryan took after
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Mirian Babangida and looted without sympathy the national treasury when some of her fellow
women could hardly afford one meal a day.
In terms of external debt and its management, external creditors put debt owned by
Nigeria at $34.7 billion. Like his predecessor Babangida, “the loans were either diverted or
utilized for projects which were unable to generate funds for servicing the debt. The magnitude
of the swindling in Nigeria became clearer when we examine critically the federal ministry of
finance appraisal of the 145 projects in the then 30 states for which the sum of 513. 150 billion
was borrowed from the Paris Club and London club. It reveals that out of the 145 projects, 18
projects were described as failed projects; engulfing $836.17 millions were not executed. 44
projects, categorized as distressed and financed with $4.811 million were implemented up to
the commissioning stage.
Shortly after Abacha’s death, officials were reported to have identified $1.8 billion
placed by the late dictator in Brazil, Lebanon, Britain and Switzerland. On 9th Nov. 1998,
Mohammed Haruna, press secretary to the head of the state announced that $675.2 million,
£75.3 million and N 22 million of funds had been recovered from the family of Abacha.
Indeed Abacha’s corrupt practices cannot be exhaustively discussed in a small chapter
as this. Meanwhile the table below shows why Nigeria is poor as a nation while some
individuals in it are richer than some countries of the world including Nigeria itself.
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INDIVIDUALS LOOT PROFILE IN NAIRA
NAME AMOUNT LOOTED
IBB N2462.35 billion
Abubakar N493.85 billion
Mike Akhigbe N549.645 billion
Jerry Useni N805.9 billion
Ismalia Gwazo N517.0 billion
Umaro Dikko N894.65 billion
Paul Oguwma N53.00 billion
Sani Abacha N1218.137 billion
Mohammed Abacha N210.7 billion
Abdulkadir Abacha N338.42 billion
Wada Nas N237.4 billion
Tom Ikimi N252.553 billion
Dan Etete N327.43 billion
Dan Etiebet N567.47 billion
Al-Mustapha N199.793 billion
Anthony Ani N688.95 billion
Bashio Dachatu N555.49 billion
Gen. Wushishi N228.695 billion
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Hassan Adamu N130.5 billion
T.Y Danjuma N342.7 billion
Ishayi Bamayi N94.0 billion
Total N1.130657 trillion
SOURCE CORRUPTION IN NIGERIA: CRITICAL PERSPECTIVE, EDITED BY DR. C.O UGWU (2002) P-125.
The table above shows that apart from Umaru Dikko others are military made
billionaires, the offshoot of bad leadership. The military has indeed done the nation much
disservice for roughly 30 years. Fundamentally, Nigeria needs ethical revolution to check this
ugly trend and to the extent other subsequent regimes aims to achieve this, we shall be
examining in subsequent chapters.
2.3 THE ORIGIN OF EFCC IN NIGERIA
The enthronement of a democratic government in 1999 after more than two decades of
military rule in Nigeria has posed a formidable challenge particularly along the direction of
combating national development. The Obasanjo’s administration appeared to have a full
awareness of the disturbing nature of the enigma. The first bill proposed to the national
assembly within a few months of its assumption of office was the corruption practices and
other related offence bill 1999, which later was passed and became the corrupt practice and
other related offence (ICPC) Act 2000. However, despite the ICPC Act and other legislation to
regulate the conduct of both public officers and the private sectors for corrupt practices, the
vices were still very much within the system. Bank fraud were in the upsurge, forex abuse and
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manipulation were still the stock in trade of many banks, 419 still bloomed large, money
laundering from corrupt proceeds were still visible and apparent. It was in these circumstances
that Nigeria was pressurized especially by the international community to update her laws and
steps to check the perpetration of economic and financial crimes. Acknowledging that all these
have contributed in keeping investors away, it is for this reasons and the international
dimension which these crimes had assumed that the promulgation of the Economic and
Financial Crimes Commission (EFCC) Act 2000 became inevitable (Ribadu, 2004:2-3).
WHAT IS EFCC?
EFCC is an acronym for Economic Financial Crimes Commissions. The commission is
charged with the responsibility of investigating and the enforcement of all laws against
economic and financial crimes in all its ramifications. The commission is also the designated
financial intelligence unit (FIU) in Nigeria, which is charged with the responsibility of
coordinating the various institutions involved in the fight against money laundering and
enforcement of all laws dealing with economic and financial crimes in Nigeria.
The EFCC Act, which was re-enacted in 2004 is revolutionary in three (3) basic aspects:
1. Power of co-ordination and enforcement of varied but related economic and financial
crimes laws are vested in one body.
2. Because the nature of the crimes handled by the commission is at the heart of the
economy, all critical stakeholders including security, law enforcement agencies and
apex financial regulations are made members of the commission.
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3. Apart from the offences created by the responsibility to specially enforce the provisions
of other principal laws bordering on economic and financial crimes including:
a. The money laundering Act, 2004.
b. The advance fee fraud (and other related offence) Act, 2005.
c. The failed banks (recovery of debts and financial malpractices in banks) Act, 1991.
d. The banks and other financial institution Act, 1996.
e. The miscellaneous offence Act, 1985.
f. Any other law or regulation relating to economic and financial crimes including the
penal code and criminal code. (see section 7 EFCC Act).
2.4 ESTABLISHMENT OF THE EFCC ACT OF 2002 IN NIGERIA
The EFCC was established by the National Assembly in 2002 under the EFCC Act of
2002; while there was an amendment of the Act in 2004. Section 5 of the EFCC Act 2002,
stipulates the following as the functions of the EFCC:
(i) The investigation of all financial crimes including advance fee fraud, money laundering
an counterfeiting, illegal charge transfers, market fraud, fraudulent encashment of
negotiable instruments, computer credit card fraud, contract scam etc.
(ii) The coordination and enforcement of all economic and financial crimes laws and
enforcement functions conferred on any other person or other authority.
(iii) The adoption of measures to identify, trace, freeze, confiscate, or seize proceeds derived
from terrorist activities, economic and financial crimes related offences or the
properties, the value of which corresponds to such proceeds.
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(iv) The adoption of measures to eradicate the Commission of Economic and Financial
Crimes.
Section 6 of the EFCC’s Act confers the EFCC such special powers as to enforce:
(a) The money laundering Act 1995.
(b) The Advance Fee Fraud and other Fraud related offences act 1995.
(c) The Failed Bank (recovery of debts) and financial malpractises in banks Act 1994 as
amended.
(d) The banks and other financial institution Act 1991 as amended.
(e) Miscellaneous offences act.
(f) Any other law or regulations relating to economic and financial crimes.
(g) Cause investigations to be conducted as to whether any person has committed offence
under this act.
(h) With a view to ascertaining whether it has been in offences under this act, or in the
proceeds of any such offences, cause investigation to be