TABLE OF CONTENTS
CERTIFICATION……………………………………………………………………………………………………………………………. ii
DEDICATION………………………………………………………………………………………………………………………………. iii
ACKNOWLEDGEMENT…………………………………………………………………………………………………………………..iv
TABLE OF CONTENTS …………………………………………………………………………………………………………………… v
ABSTRACT…………………………………………………………………………………………………………………………………..vii
CHAPTER ONE …………………………………………………………………………………………………………………………….. 1
1.1 BACKGROUND INFORMATION………………………………………………………………………………………………. 1
1.2 STATEMENT OF THE RESEARCH PROBLEM…………………………………………………………………………. 4
1.3 OBJECTIVE OF THE STUDY…………………………………………………………………………………………………….. 5
1.4 RESEARCH QUESTIONS………………………………………………………………………………………………………… 5
1.5 RESEARCH HYPOTHESES………………………………………………………………………………………………………. 5
1.6 SIGNIFICANCE OF STUDY……………………………………………………………………………………………………….. 6
1.7 SCOPE AND LIMITATIONS OF STUDY………………………………………………………………………………….. 6
1.8 ORGANISATION OF THE STUDY……………………………………………………………………………………………… 6
1.9 DEFINITION OF TERMS………………………………………………………………………………………………………….. 7
CHAPTER TWO ………………………………………………………………………………………………………………………….. 9
LITERATURE REVIEW AND THEORETICAL FRAMEWORK……………………………………………………………………. 9
2.1 LITERATURE REVIEW…………………………………………………………………………………………………………….. 9
2.1.1 CONCEPTUALIZATION OF CORRUPTION……………………………………………………………………………….. 9
2.1.2 NATURE OF CORRUPTION…………………………………………………………………………………………………. 11
2.1.3 CHARACTERISTIC AND FORMS OF CORRUPTION………………………………………………………………….. 12
2.1.4 FORMS OF CORRUPTION IN NIGERIA………………………………………………………………………………….. 13
2.1.5 CAUSES OF CORRUPTION IN NIGERIA…………………………………………………………………………………. 15
2.1.6 IMPACT OF CORRUPTION ON DEVELOPMENT IN NIGERIA……………………………………………………. 17
2.1.7 THE ENABLING ENVIRONMENT FOR CORRUPTION ………………………………………………………………. 19
2.1.8 THE ECONOMIC AND FINANCIAL CRIMES COMMISSION (EFCC)…………………………………………….. 20
2.1.9 FUNCTIONS OF EFCC………………………………………………………………………………………………………… 21
2.1.10 THE STRUCTURE OF EFCC………………………………………………………………………………………………… 22
2.1.11 ACTIVITIES OF EFCC SINCE CREATION……………………………………………………………………………….. 22
2.1.13 CHALLENGES FACING THE EFCC……………………………………………………………………………………….. 26
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2.2 THEORETICAL FRAMEWORK ……………………………………………………………………………………………….. 27
2.2.2 THE SYSTEM THEORY ………………………………………………………………………………………………………. 29
CHAPTER THREE………………………………………………………………………………………………………………………… 30
RESEARCH METHODOLOGY ………………………………………………………………………………………………………… 30
3.0 RESEARCH DESIGN ……………………………………………………………………………………………………………… 30
3.1 RESEARCH METHODOLOGY …………………………………………………………………………………………………. 30
3.2 POPULATION OF THE STUDY………………………………………………………………………………………………… 30
3.3 SAMPLE SIZE AND SAMPLING TECHNIQUES …………………………………………………………………………… 31
3.4 DATA COLLECTION AND DATA INSTRUMENT …………………………………………………………………………. 31
3.5 VALIDITY AND RELIABILITY OF INSTRUMENT…………………………………………………………………………. 31
3.6 QUESTIONNAIRE DESIGN…………………………………………………………………………………………………….. 31
3.7 M ETHOD OF DATA ANALYSIS………………………………………………………………………………………………… 32
CHAPTER FOUR…………………………………………………………………………………………………………………………. 34
DATA PRESENTATION AND ANALYSIS…………………………………………………………………………………………… 34
4.0 INTRODUCTION………………………………………………………………………………………………………………. 34
4.1 PRESENTATION AND ANALYSIS OF DEMOGRAPHIC CHARACTERISTIC…………………………………………. 34
4.2 Data Analysis…………………………………………………………………………………………………………………. 44
CHAPTER FIVE …………………………………………………………………………………………………………………………… 50
5.0 SUMMARY FINDINGS, CONCLUSION AND RECOMMENDAION……………………………………………… 50
5.1 SUMMARY OF FINDINGDS………………………………………………………………………………………………….. 50
5.2 CONCLUSION……………………………………………………………………………………………………………………….. 52
5.3 RECOMMENDATIONS …………………………………………………………………………………………………………… 53
BIBLIOGRAPHY ………………………………………………………………………………………………………………………….. 54
APPENDIX…………………………………………………………………………………………………………………………………. 58
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ABSTRACT
Corruption is a complex and persistent cancerous global phenomenon, which bedevils Nigeria.
Corruption in the form of misappropriation, bribery, embezzlement, nepotism, money laundering
etc. by public officials has permeated the fabric society. Major political parties’ office seekers
top the list of corrupt officials. Elected officials of high position and public officers use their
position of authority to actively engage in corrupt activities. For several years Nigeria has been
at the bottom of the Transparency International (TI), Corrupt Perception International (CPI)
ranking. In 2002, the Nigerian government created the EFCC to investigate and prosecute cases
of corruption and financial crimes. This project reviews the political economy of corruption and
the efforts by the Nigerian government to combat it by examining the types and forms of
corruption and the various perspectives for understanding the causes of corruption, The study
while recognizing the importance of the various perspectives, employed structural
functionalism and system theories to offer deeper insights into the systemic corruption activities.
Finally, the project examines the activities of the EFCC since its creation as well as the activities
of the EFCC in post Obasanjo era and notes that it faces serious challenges.
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CHAPTER ONE
1.1 BACKGROUND INFORMATION
INTRODUCTION
Corruption is a complex and multifaceted phenomenon, which characterize the global economy.
Although a global problem the attitude of many countries, especially developed countries was to
bemoan the practice of corruption in developing countries and ignore the role of foreign officials
who gave bribes and public officials who laundered corrupt proceeds in foreign financial
institutions (Harsh, 1997). Until recently many industrial countries except the United States
considered bribe given by national companies operating overseas a legitimate business practice,
and therefore tax deductible (Harsh 1997). In Nigeria, as in African countries, corruption is a
malaise that inflicts the society. Corruption drains African countries over $140 billion per year
(Ribadu, 2007). Corruption deters investment because it is a distinctive to potential investors; it
distorts public expenditure, increases the overheads of running businesses, and diverts resources
from poor to rich countries.
Corruption undermines the process of globalization. Accordingly, states and many supranational
governmental organizations have initiated and established anti-corruption regimes and advocacy
programs to combat corruption. For example, the organization of Economic Cooperation and
Development, the council of Europe, the Organization of American States, the African Union
(AU), the United Nations (UN), the United Nations Development Program (UNDP), the
International Monetary Fund (IMF), and the World Bank has introduced conditions, policies, and
measures to deal with corruption. For example, the Organization for Economic Cooperation and
Development (OECD) was instrumental in recommending the cessation of the practice of
making bribes paid by foreign businesses tax deductible and criminalizing officials involved in
bribery, creating the Anti-Corrupt Network Action Plan, and establishing the convention on
combating (Bribery of Foreign Public Officials); the UN created the UN Convention Against
Corruption (UNCAC) with 140 signatories. The AU established the African Union Regional
Anti-Corruption Convention, and the United States uses anti-corruption measures as threshold
criteria for selecting countries for assistance under the millennium challenge account (Brianard,
2003). Other non-governmental international organizations have also been active in the fight
against corruption. For example, the German based Transparency International (TI), which has
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provided strong leadership not only in the areas of research and publications but in advocacy and
sensitization of the public against the evils of corruption.
Corruption has been a major problem in Nigeria since independence. Perhaps, it may be that we
even inherited the problem from our colonial masters. Numerous state institutions have become
dysfunctional because of large-scale corrupt practices. Projects are routinely abandoned, and no
one is brought to book, public goods and resources are diverted to private ends. Corruption
endangers the good governance and the democracy we see today. Corruption was cited as one of
the more prominent reasons for Nigeria‟s first military coup by the coupists of January 15, 1966
military putsch.
Massive corruption and resources brigandage also were cited as one of the reasons for military
takes over by Buhari/Tunde Idiagbon on December 31st 1983. Due to the pervasive nature of
corruption in Nigeria, Nigeria‟s former President Olusegun Obasanjo in his inaugural speech on
May 29, 1999 affirmed that corruption, the single greatest bane of our society today would be
tackle head on, at all levels. No society can achieve its full potentials if it allows corruption to
become a full blown cancer as it has become in our nation. According to the World Bank
(1997:5)
Corruption, thrives when economic policies are poorly designed, education levels or standards
are low, civil society participation is weak, public sector management is poor, and
accountability of public institutions are weak.
Corruption has become the order of the day in our public institutions, and because Government
business is nobody‟s business, the country continues to suffer (Nzemeke and Erhagbe: 2002:
131).
Corruption has been cited as the major reason why developmental prescription, aids and policies
imposed on Nigeria by international financial organizations have inexplicably failed. Thus,
corruption is indeed, to the society and the polity what HIV/AIDS is to the human body, while
manifestation of the acquired immune deficiency syndrome caused by a socio-virus (corruption).
As HIV/AIDS breaks down our immune system thereby making it susceptible to ills and
sicknesses, so also corruption breaks down the law and order, structure of the economy, thereby
3
making it easy for the nation to be infested with all sorts of deficiencies and crimes. Sam Adesua
(1987: 8-9) noted that
In Nigeria,…corruption is a well – organized and well entrenched social malady bestriding the
nation, but which tends to have the tacit approval of almost every Nigerian in the social ladder.
This is an opposite description of the corruption status in the Nigerian nation. Corruption is no
doubt pervasive in the country. It permeates all strata of both public and private life. It is not
peculiar to any regime or government in the country. Honesty seems to have taken flight, and
corruption has in the meanwhile tremendously gained ground and become very rampant.
According to Familoni (2005:51), becoming corrupt in the Nigeria is almost avoidable, as
morality is lax because to survive, people have to make money. The 1996 study of corruption by
Transparency International (TI) and Goettingen University ranked Nigerian as the most corrupt
nation, among the fifty-four (54) countries listed in the study with Pakistan as the second most
corrupt country. Also in the 1998 Transparency International corruption perception index (CPI),
the image of Nigeria dipped further as she was ranked ninety (90) out of the ninety one (91)
countries pooled – Bangladesh came first in the ranking, the country retained its position in
2003. In 2006, the Transparency International perception index ranked Nigeria one hundred and
forty-two (142) out of one hundred and sixty-three (163) countries with Haiti as the most corrupt
country in the world.
4
1.2 STATEMENT OF THE RESEARCH PROBLEM
One of the pertinent issues in Nigeria today is the focus on one of the greatest impediment to
good governance and sustainable development which is corruption. In recent times, corruption
has as an issue taken the front burner in development discourse worldwide.
Since 1996, the World Bank has supported more than six hundred (600) anti-corruption
programs and governance initiative developed by its member countries. In 1999, the World Bank
budgeted, a whopping sum of $7.5million to fight corruption (Polzer, 2000:2; Tesh, 1991).
Ironically, the global financial body was embroiled in scandalous dealings that led to the removal
of its chairman. This goes to show the negative effects corruption has on sustainable growth and
development. Accountability is typically weak in Nigeria because the country is ripe for
corruption and rife with it. The motivation to earn extra income is extremely strong, worsened by
poverty and low declining civil service salary structure. Thus, corruption has become a
cankerworm in the political system, stifling it of its potential sustainable growth. It is as a result
of the effects of corruption on the Nigeria society that lead to the establishment of an agency
known as EFCC to combat corruption in public offices.
The post Obasanjo EFCC on its establishment has over the years amidst the changing economic,
and political situation, recorded a significant success and has helped in tackling corruption in the
public and even, the private sectors as in the recent investigation into banking sector. In
December, 2008, the Commission also introduced a proactive approach geared towards curbing
corruption by launching the Anti-Corruption Revolution (ANCOR) which is primarily a public
enlightenment project with the slogan “SEE SOMETHING, SAY SOMETHING, DO
SOMETHING”. The idea being to urge the citizenry to be both facilitators and beneficiaries of
the corruption-free Nigerian by rising out of their indifference and nonchalant attitude to
SEEING and obvious aberration indicative of corruption, SAYING/REPORTING such acts, and
DOING something positive to ensure that such acts are exposed and punished. It avails Nigerians
the opportunity to take up full control of the War Against, Corruption (WAC).
The strategy has so far kicked off with public enlightenment campaigns in the geopolitical zones
of Nigeria and it has been warmly embrace by the wider public. Since the establishment of
EFCC in 2003, it has been involved in the investigation of cases ranging from high profile
5
corruption cases, advanced free fraud, money laundering, tax evasion, contract scams, identity
theft, illegal oil bunkering, bribery, looting, to foreign exchange malpractices. Under the
previous EFCC Chairman Nuhu Ribadu the Agency attacked financial corruption by prosecuting
and setting conviction against a number of high-profile corrupt individuals, ranging from
Nigeria‟s former chief law enforcement officer to several bank chief executives (Cecilia Ibru and
co). By 2005, the EFCC arrested government officials including, Diepreye Alamieyesiegha onetime Governor of Bayelsa State.
1.3 OBJECTIVE OF THE STUDY
The Objectives of the study are as follows:
1. To appraise the activities of EFCC in post Obasanjo era
2. Assess the effect of corruption on Nigeria development
3. To ascertain if the EFCC has succeeded or failed in its quest to wipe out corruption in
Nigeria in post Obasanjo era
1.4 RESEARCH QUESTIONS
1. What are the activities of EFCC in post Obasanjo era
2. What are the effects of corruption on development in Nigeria?
3. Has the EFCC succeeded or failed in its quest to wipe out corruption in Nigeria in post
Obasanjo era?
1.5 RESEARCH HYPOTHESES
H1: The EFCC activities in post Obasanjo era has been effective.
H0: The EFCC activities in post Obasanjo era has not been effective
H1: Corruption has negative effect on development in Nigeria.
H0: Corruption does not have negative effect on development in Nigeria
H1: The EFCC in post Obasanjo era has succeeded in its quest to wipe out corruption in
Nigeria.
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H0: The EFCC in post Obasanjo era has not succeeded in its quest to wipe out corruption in
Nigeria
1.6 SIGNIFICANCE OF STUDY
This research study will reveal the negative impact of corruption on the political and economic
development in Nigeria, with the special interest on Economic and Financial Crimes
Commission (EFCC) effort in combating corruption in the Nigerian public and private sector.
Moreover, this will help in to know how corruption has turned to be a cankerworm in the SocioPolitical and economic parlance and in all government ministries and agencies in Nigeria, and
how it brings about significant effects not only on the country‟s politics and leadership but also
on growth and national development. This research work will therefore help the government and
individual citizens in knowing the evil impacts of corruption as well how to address the problems
associated with corruption in Nigeria.
1.7 SCOPE AND LIMITATIONS OF STUDY
The scope and limitations of the study focuses on the Economic and Financial Crimes
Commission (EFCC) in post Obasanjo era. The study also focuses on the effort put in place by
the EFCC in curbing the menace of corruption in Nigerian society. It also focuses on the
successes and achievement made by the EFCC since its creation.
The administration of former President Olusegun Obasanjo was the first to show interest in
combating corruption by initiating the appropriate Agency like EFCC and where selective result
have been achieve towards the fight against corruption in Nigeria.
1.8 ORGANISATION OF THE STUDY
The research would be divided into five chapters. The first chapter discusses the background to
the study, statement of the problem, objective of the study, scope of the study, hypotheses,
research question, definition of terms, and organizations of various chapters.
The second part consist of literature review exhaustively discuss corruption in Nigeria, its nature
and its impact on Nigeria development, follow by theoretical frame work using structural
functionalism and system theory.
7
Chapter three will focus on methodology, chapter four focuses on the analysis of data and lastly,
chapter five focuses on the achievement in the crusade, the summary and conclusion.
1.9 DEFINITION OF TERMS
BRIBERY
Bribery is a form of gratification which involves the promise or offer of any benefit that
improperly affects the action of a public officer. It may consist of cash, gifts, entertainment,
sexual intercourse, and job among other favors. (Okunbo: 2004, p.44) Bribery affects good
governance when it undermines the rule of law and procedures.
EMBEZZLEMENT
Embezzlement is the theft of public resources by a public office holder entrusted with authority
and control over these valuable resources. Embezzlement is one of the common ways of illegal
wealth acquisition in Nigeria. (Alabo: 2006, p. 4) It undermines good governance when
privileged public officials embezzle money meant for developmental purposes.
EXTORTION
Extortion is the unlawful and intentional gain of advantage and material gain from another
person, through illegitimate pressure to force him or her to part with a benefit. (Namiobia: 2008)
It may involve the use of tricks to deprive certain rights of individuals for some personal gain.
This usually portrays the leadership in a bad light.
FRAUD
Fraud is any criminal deception involving some form of tricks, false pretense or representation to
obtain unjust benefit. It encompasses alteration and falsification of document. Fraud damages the
image of any country by preventing the flow of foreign investment.
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NEPOTISM
Nepotism is the granting of undue favors to one family members, relatives and business
associates by a public office holder while making appointments or awarding contracts.
(Namiobia: 2008) Nepotism breeds ineptitude in governance especially where a mediocre is
placed in position of authority.
MONEY LAUNDERING
Money laundering is the concealment of the sources, location, ownership and control of illegally
received proceeds (such as currency and assets) of what is usually an organized crime, by
converting them to what appears to be legitimate. (Namiobia: 2008) For example, drug dealer
launder large sums of money from drugs trafficking into buying properties with the intention of
concealing the sources. Governance in such country of money laundering is portrayed in bad
light.
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