IMPROVEMENT OF FINANCIAL ACCOUNTABILITY AND TRANSPARENCY THROUGH THE ACTIVITIES OF EFCC IN NIGERIA (2009 – 2012)

ABSTRACT

Several years of military misrule and mismanagement had weakened the economic management processes and institution in Nigeria. There was no transparency and accountability in government (Public Sector) and private sector and Nigerians becomes notorious for endemic corruption. The result was the inability of government to deliver services to the Nigerian public. Most private companies both in the oil and non-oil sector have constantly evade taxes and have collided with official to evade custom duties and payment of taxes .In addition, widespread preparation of economic and financial crime like advance fee fraud (419), money laundry, cyber crime, banking fraud and endemic corruption have had severe negative consequences on Nigeria, including decrease direct foreign investment in the country. Consequently, the economic and financial crimes commission (EFCC) was establish as one of the mechanism for prevention, investigation and prosecution of corrupt practices and economic and financial crime in the public and the private sector. Finally, this research work is aim at looking the various activities of the Economies and financial crime commission (EFCC) and how they can improve financial crime accountability and transparency.

CHAPTER ONE

INTRODUCTION

1.1  BACKGROUND OF THE STUDY

Nigerians inability to consolidate her democracy is blamed largely on the high level of corruption in the country. Corruption generally has eaten deep especially in the area of economic and financial crime which seems like a societal norm. People have imbibed the belief that hard work, honesty and integrity are not worthy principles since one can do very little to earn so much. Thus this pervades in all aspect of human life, beginning from the home to both public and private institution.

This fraudulent activity, economic mismanagement, lack of accountability and transparency fraud and criminality which brought about inefficiency pervades in all aspect of human life beginning from the home to the public and private institution.

More so, the economic crime includes embezzlement, over invoicing, cyber crime money laundry, illegal currency manipulation, corporate crime and large scale banking etc. All these and more has made Nigeria to be black listed by transparency international in their 2004 report as a third most corrupt country.

As a result of these, the federal government inaugurated economic and financial crime commission (EFCC) in 2002 and was established as an Act into law in 2004 in order to sanitize the Nigerian economic environment by enforcing all economic and financial crime laws. This includes:

a. Fighting the advanced free fraud and related offences as amended in the act.

b. Money laundering amendment Act 2003, No7;1995 No3 c. Miscellaneous offences Act 1983.

d. The bank and other financial institution Act 1991 as amended.

e. Financial malpractice on bank act 1994 as amended and failed bank (recovery of debts).

f.  Carrying out and sustain rigorous public and enlightenment campaign against economic and financial crime within and outside Nigeria.

g. Laws or regulations relating to economic and financial crime which includes criminal code and penal code.

1.2  STATEMENT OF PROBLEM

Any nation, be it developed or developing that is experiencing economic and financial crimes will find it difficult to attain growth, development and economic stability. In a country like Nigeria both the public and private sectors have continued to suffer inefficiency and ineptness due to financial and economic irregularities which includes money laundry, falsification of financial information, lack of transparency and accountability, corruption, fraud, criminality etc. Thus these lead to the study o f the Topic: Improvement of financial accountability and transparency through the activities of EFCC in Nigeria from  “2009 to 2012” aim at looking at the different categories of financial fraud, the various strategies EFCC has adopted in controlling and combating them in order to improve financial accounting and transparency.

1.3      OBJECTIVE OF THE STUDY

This research work is designed to critically asses how EFCC can be effectively utilized to improve financial accountability and transparency in Nigerian economy.

Also to review and ascertain the operations of the commission in discharge of her duties and to collaboration EFCC with other financial regulations to bring financial sanity into the Nigerian system.

1.4  RESEARCH QUESTIONS

The following are the questions this research work intends to address scientifically:

•  What are the responsibilities of EFCC?

•   How far has EFCC gone in detecting and controlling fraud in Nigeria from 2005 – 2011?

•  What are the challenges facing EFCC in execution of her duties?

•   How effectual has EFCC’s activities benefited Nigerian public and private sectors since inception?

•  What are the sources of finance and how are they financed?

•  What are the powers and limitation of EFCC?

•  What are the achievement and success of EFCC from 2009 – 2012?

1.5  RESEARCH HYPOTHESIS

Ho:  The activities of EFCC cannot enhance financial accountability and transparency.

Ho:    EFCC as a machinery cannot effectively detect and control financial and economic irregularities in Nigeria.

1.6 SIGNIFICANT OF THE STUDY

The research work will be useful and equally be a source of information to the following:

•  Academic

•  Government

•  Public and private sector

•  Research scholars

ACADEMIC:  This research work to the academic will serve as a reference for a researcher as a reserved knowledge and equally a basis for them to formulate more theories and strategies that will promote the effectiveness of EFCC in ensuring financial accountability and transparency.

GOVERNMENT: To the government, the research will serve as a yard stick in determining the extent the activities of EFCC has contributed towards the administration and controlling of fraud in Nigeria. And also as a basis in determining their Weakness so as to improve them for effective regulation of fraud in Nigeria.

RESEARCH SCHOOLARS:  To the research scholars, this research work will serve as a foundation for further research.

PUBLIC SECTOR: Is the part of the economy that is owned and controlled by the government. This pieces of work all government parastatalls, institutions, ministries, corporations etc, all their activities will be exposed to the operations of EFCC.

PRIVATE SECTORS:  Refers to the part of the economy where by the resources used for production of goods and services are privately owned by individuals and corporate bodies. This pieces of work will ensure that they operate their business within the stipulated law and legislature governing their operations.

1.7  SCOPE AND LIMITATION OF THE STUDY

The scope of this research work tends to critically view and analyze the activities of EFCC in Nigeria, how it can enhance financial accountability and transparency. It also treats the operations of both public and private sectors with the aim of enhancing financial efficiency.

LIMITATIONS

This research work suffered many set back due to some constraint which includes:

The restriction being made on the part of dissemination of information from the EFCC office due to security conscious and unwillingness t o disclose information and plans to the public; and also some write-ups and journals were not made available for this research work. Ideally, the work should have involved more states but due to some inherent restrictions such as inadequate time and money. But efforts would be made at least to touch a great number of states to have a balance view of this research.

1.8 DEFINITION OF TERMS

EFCC:  This is an acronomy for economic and financial crime commission. It is a commission created by an Act in 2002 by the National Assembly charged with the responsibility of fighting and investigating and enforcing all law against economy and financial crime. This Act was later amended by EFCC (established) Act of 2004.

CORRUPTION: Is defined as “abuse of authority or trust for a private benefit and is a temptation indulged in not only by public officials but also by those in position of trust or authority in private enterprise or non-profit organization”.(IMF 2000).

FRAUD: Is a crime that involves the use of deceits to obtain pecuniary advantage (oxford dictionary 7th edition). It also means a person that pretends to have qualities and abilities skill etc. that he or she does not really have to deceive another.

NIFU:  This refers to an acronym for Nigerian financial intelligent unit, it is an autonomy central national agency, domiciliary within EFCC with sole responsibility of receiving and analyzing financial information.

INVESTIGATION:  this refers to an official examination of the fact about a situation (oxford dictionary 7th edition). It is equally a special kind of inquiry or examination of accounts carried out by an investigator with the predefined purpose (Chika Nwoha 2003:33).

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