Assessment Of Organizational Effectiveness Of Economic And Financial Crimes Commission (EFCC) In Combating Financial Crimes In Nigeria, 2003-2012

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Assessment Of Organizational Effectiveness Of Economic And Financial Crimes Commission (EFCC) In Combating Financial Crimes In Nigeria, 2003-2012


Abstract


This study was carried out on the assessment of organizational effectiveness of economic and Financial Crimes Commission (EFCC) in combating financial crimes in Nigeria, 2003-2012. The researcher in this study employed the survey research design to collect and gather data. The target population for the research constitutes the staff of Economic and Financial Crimes Commission (EFCC) Abuja, being the organization under study. Simple random sampling is adopted. The sample were drawn from each class of the EFCC staff and the general public. Questionnaire was the main research instrument used for the study to gather necessary data from the sample respondents. Despite the pervasive corruption in Nigeria, which led to the underdevelopment of its institutions and economy. There still some impediments on its effective administration and tackling of these menace. Which the economic and financial crimes commission (EFCC) is established to tackle it.

The research work attempt to examine the viability of economic and financial crimes commission in combating financial crimes in Nigeria and implications for improvement as its scope, the research work was prompted by some major problems affecting economic and financial crimes commission in Nigeria such as poor administration corruption, political interference, etc, the objective is to evaluate the viability of economic and financial crimes commission on the elimination of corruption in Nigeria, identify significant measures taken by the economic and financial crimes commission in combating financial crimes in Nigeria and implication for improvement. The study employed the survey method and data was obtained from primary source using questions, the analyses were based on simple percentages and the hypothesis were analyzed using chi-square, the findings revealed that the activities of economic and financial crimes commission (EFCC) have significantly reduce the rate of corruption in Nigeria. The study concluded that corruption will be reduced if economic and financial crimes commission is made effectively and efficiently in its activities. The study recommended that the economic and financial crimes commission from the executive, promptly prosecution of perpetrator of corrupt practices, adequate finding, independence of the judiciary should be available in addressing the issue of corruption in Nigeria.


Table Of Contents


Preliminary Page(s)

  • Title Page
  • Declaration
  • Approval
  • Dedication
  • Acknowledgement
  • Abstract
  • Table of Content

Chapter One:

Introduction

  • 1.1 Background to the Study
  • 1.2 Statement of the problem.
  • 1.3 Research Questions
  • 1.4 Objectives of the study
  • 1.5 Research Hypothesis
  • 1.6 Significance of the study
  • 1.7 Scope and limitations of the study
  • 1.8 Definition of Key Terms
  • 1.9 Plan of the chapters

Chapter Two:

Literature Review and Theoretical Framework

  • 2.1 Introduction
  • 2.2 Literature Review
  • 2.3 Theoretical Framework
  • 2.4 Empirical review

Chapter Three:

Research Methodology

  • 3.1 Research Design
  • 3.2 Population of the Study
  • 3.3 Sample Technique and Size
  • 3.4 Source of Data
  • 3.5 Instruments of Data Collection
  • 3.6 Reliability
  • 3.7 Validity
  • 3.8 Method of Data Analysis

Chapter Four:

Presentation, Analysis and Interpretation of Data

  • 4.1 Introduction
  • 4.2 Presentation of Data of the Respondent
  • 4.3 Test of Hypothesis
  • 4.4 Summary of major Findings

Chapter Five:

Summary, Conclusion and Recommendations

  • 5.1 Introduction
  • 5.2 Summary
  • 5.3 Conclusion
  • 5.4 Recommendations
  • References
  • Appendix
  • Questionnaire

Chapter One


Introduction

1.1 Background to the Study

The issue of the upsurge of corruption in Nigeria undoubtedly remains one of the most pressing and unresolved problems facing Nigeria as a nation. The prevalence of corruption and corrupt practices in Nigeria particularly among the leaders is absolutely deplorable and troubling, considering its astronomical damages on Nigerian polity (Dike, 2002). The peril of corruption could be felt from the slow movement of files in offices, police perennial extortion points along our major and indoor roads and tollgates, slow traffics on the highways, port congestion, queues at the passport offices and gas stations, ghost workers syndrome and election irregularities. The chaos caused by corruption in this country could be recognized even by a newly born baby (Obayelu, 2007). The funds allocated for their welfare disappear into the thin air. Thus, it is believed by many that in the society that corruption is a bane of Nigeria.

Consequently, the issue keeps reoccurring in every academic and informal discussion in Nigeria. Some writers on corruption argued that corruption is endemic in all governments, and that it is not peculiar to any continent, region, ethnic and racial group. In a statement made by Dike, (2002) and Obuah (2004), corruption cuts across faiths, religious denominations and political systems affecting both the young, the old, man and woman alike.

Corruption is one of the oldest and most perplexing phenomenon that exist in every human society. It is the most dangerous social ills of any society. This is because, corruption like a deadly virus, attacks the vital structures that make for society’s progressive functioning thus putting its very existences into serious peril. It will take a novice to deny that corruption is by far the greatest problem of governance in Nigeria. Hardly a day passes by in Nigeria without the subject being discussed as the greatest obstacle to the socio-economic development. Between 1980 and 2005, Nigeria almost became a pariah nation in the global community. Many nations, especially among the most highly industrialized ones, tried to severe socio-economic, financial, cultural and political ties with Nigeria. Some of them even treated some Nigerians in their domains with sheer contempt and gross disrespect as well as high suspicion. Their common expressed reason is not farfetched, it is corruption.

Corruption in all its forms has gone deep into the socio-economic, administrative, political, religious, cultural and educational fabrics of our nation. It is not uncommon to find a policeman extorting money from motorists on the high ways, management of financial institutions manipulating their balance sheets, some administrative staff of our higher institutions collecting tip-offs from desperate admission seekers, politicians looting government treasury, student’s involvement in examination malpractices, rigging of elections, giving 10% commission on public contractors etc. In fact, corruption has been institutionalized in Nigeria.

Since 1995 the Transparency International (IT) a global anticorruption body started its rating of the most corrupt countries, Nigeria has regularly been rated among the most corrupt countries (1997 and 2000) or the second most corrupt nation (1999, 2001, 2002, 2008 and 2004) on the earth. However, with the establishment of the domestic anti- graft bodies like E.F.C.C and I.C.P.C, Nigeria’s ranking has consistently improve since 2006 where Nigeria was ranked 153rd out of 180 countries, ranking 147th out of 180 countries sampled in 2007, 121st out of 180 countries in 2008, 130th out of 180 countries sampled in 2009, 134th out of 178 nations in 2010, 143rd out of 183 nation in 2011, 139th out of 176 countries in 2012, 144th out of 175 countries in 2013 and the latest ranking 136th out of 175 countries surveyed. This means that corruption is a major threat facing humanity; corruption destroys lives and communities, and undermines countries and their institutions. It generates popular anger that threatens to further destabilize societies and exacerbate violent conflicts.

Waziri (2009) lamented that” the preponderances of these crimes have negative consequences on Nigeria, such as decrease in foreign direct investment (FDI), tarnishing of Nigeria’s national image and the collapse of our power and industrial sectors. These crimes reduce the availability of public resources to finance the implementation of development policies.

The late Former Minister of Information and Communication Prof. Dora Akunyili during President Obasanjo regime lamented the Nigerian situation when she said; “pervasive corruption is the bane of our national identity. It was fed for a long time by past government that paid lip service to the fight against it. Because of our reputation as a corrupt country, that Nigerian state has become a liability to its citizens abroad. So we need to rebrand because the current brand as corrupt state is hard to sell.

Against this backdrop, successive governments since the regime of the military government of General Murtala Muhammad and the civilian administration of Chief Olusegun Obasanjo (1999-2007), have set up an impressive array of anti-graft institution such as War against Indiscipline, National Committee on 419, I.C.P.C and latest and most prominent among them is the E.F.C.C

The economic and financial crimes commission (EFCC) was established by an act of parliament in 2008 under the administration of the former Nigerian President Olusegun Obasanjo with the responsibility for the enforcement of all economic and financial crimes laws, among other things. Since its inception, the commission has been discharging its constitutional mandates of investigating and prosecuting any corrupt persons. That commits any corrupt activities that fall in the circle of economic and financial crimes like cybercrimes, money laundering, phone exchange, frauds, bribery etc. It does this by enforcing the following laws; the Anti-money Laundering Act 1995, the Advance Fee Frauds and Other Related Offences Act 2006, the Failed Banks (Recovery of Debts) and Financial

Malpractices in Banks Act 1994; the Miscellaneous Offences Act and so on.
Nigeria’s dream of becoming one of the world twenty (20) biggest economies by 2020 will remain a pipedream unless corruption is addressed. Nigeria has enough human and natural resources to sustain that dream, but ambitious benchmark can only be attained if this country manages to tame corruption. Therefore, this study examines the assessment of organizational effectiveness of economic and Financial Crimes Commission (EFCC) in combating financial crimes in Nigeria, 2003-2012.


1.2 Statement of the problem.

The quest to curb corruption and corrupt practices in order to achieve improved economic discipline in Nigeria remains a daunting task which requires strong political will, institutional reforms, and formation of international partnerships. Several arrest, prosecution and recovery of public properties have been made and yet corruption goes on as if nothing has happened. However, the policy of preventing or protecting public sector corruption is better than the curative approach of curbing the problem posed by corruption. Many Nigerians were of the view that the fighting corruption in Nigeria seems to be selective while some other individuals believed that officials of the Economic and Financial Crime Commission (EFCC) shield some criminals from arrest while others believe that some people can perpetrate corruption without being detected. Some political leaders of the country dodge prosecution in order not to be tamed besides; these officials of Economic and Financial Crime Commission (EFCC) are perceived as being unethical by many in the society making the public lose confidence in the quest to curb corruption and corrupt practices by EFCC (Obuah, 2004).

Like any household name, “corruption” has been a cancer-worm and an inimical issue that has eaten deep into Nigeria fabrics. This seemly problem that been experienced over the years and still in existence today has really been a cub in the wheel of progress of the nation, thereby reproducing itself in all other facets around all sectors of the nation.

Bearing this in mind and the various “indelible ugly marks”, this evil has left the country with reproducing all sort of bad offspring like poverty, economic and financial crimes, unemployment, low standard of living and many more vices, effort has been made by government to establish some institutions and important among them is the Economic and Financial Crimes Commission (EFCC) to carryout laudable functions in order to kick this “evil” from our nation, the E.F.C.C has done a lot in investigating all financial crimes ranging from advance fee frauds, money laundering, counterfeiting etc. co-coordinating and enforcing all economic and financial crimes, adopt measures to identify, trace, freeze, confiscate proceeds derived from related offences, examine and investigate all reported cases of such crimes and even trial victims and if convicted enforce appropriate measure on such person or body in order to set out country free from corruption.

Despite these a whole lot of activities and efforts made by the commission in ensuring to set the country free of corruption and all its facets, what seems still inherent in the society are cases of public embezzlement, bribery, money laundering issues by top government officials and politicians, high level of poverty, massive rigging of election results, internet frauds, political crises and many more. Why these products of corruption and corruption itself are still in existence in our nation, in spite of the numerous effort of the commission is the problems and some ways of tackling it this project tries to look.


1.3 Research Questions

  1. To what extent does the objective of Economic and Financial Crimes Commission (EFCC) help in combating financial crimes in Nigeria?
  2. To what degree has Economic and Financial Crimes Commission (EFCC) so far reduced the rate of corruption in Nigeria?
  3. To what degree does corruption affect the commission while carrying out its statutory role?
  4. To what degree of proportion does Economic and Financial Crimes Commission (EFCC) is more effective in fighting corruption?

1.4 Objectives of the study

The main objective of this study is to examine the assessment of organizational effectiveness of economic and Financial Crimes Commission (EFCC) in combating financial crimes in Nigeria, 2003-2012. Given below are the specific objectives of the study:

  1. The major objective of the study is to critically assess the viability of economic and financial crimes commission in combating financial crimes in Nigeria.
  2. To determine the extent to which the economic and financial crimes commission reduced the rate of corruption in Nigeria.
  3. To measure the extent at which corruption affect the commission while carrying out its statutory role.

1.5 Research Hypothesis

The hypothesis postulated in this research states that;

HO1: The activities of Economic and Financial Crimes Commission (EFCC) have significantly reduced the rate of corruption in Nigeria.

HO2: When carrying out its statutory role, there is no significant effect of corruption on the commission.

HO3: The activities of Economic and Financial Crimes Commission (EFCC) have not reduced the rate of corruption in Nigeria.


1.6 Significance of the study

Researchers and general administrations are expected to benefit from this study as it adopts a pattern of presentation of facts that may provide the need impetus for further research on the topic or other related ones.
Also, it will serve as a source of material to practitioners in both private and public organization as a means of making a complete raid on institutionalized or corporate economic and financial crimes.

This work is expected to contribute towards tackling corruption which has been seen as a major problem of Nigeria and outline measures in which Economic and Financial Crimes Commission can adapt.

Finally, the recommendations made should serve as a means of enlightening the policy makers and general public about the causes and evil of corruption in our society thereby helping to build an economic system or come out with a policy devoid of crimes.


1.7 Scope and limitations of the study

The scope of the study will focus on the assessment of organizational effectiveness of economic and Financial Crimes Commission (EFCC) in combating financial crimes in Nigeria, 2003-2012, with more emphasis on public sector. The reason for this study is to have a critical analysis of the commission as a perceived number one anti-corruption fighter in Nigeria.

This research is committed for the period of eleven (11) years (2008-2019) and was limited to the headquarter office in the Federal Capital Territory (F.C.T) Abuja. The reason for choosing this time frame is to have a proper assessment of the commission and because of high rate of corrupts practices that were experienced during the period. Of course, some factors really serve as hindrance to the research on the basis of sourcing materials. Since some materials are not accessible because of the confidentiality of the information and fear of being quoted.


1.8 Definition of Key Terms

The following are the key terms that will be used most often in this work. Therefore, it is very necessary to defined them;

1. Corruption

Operationally, corruption means action that is perceived to be contrary to public opinion, against the law and against the public interest.

2. Commission

Economic and Financial Crimes Commission (E.F.C.C).

3. Economic Crime

The Economic and Financial Crimes Commission Act of 2004 defines economic crime as that nonviolent criminal and illicit committed with the objectives of earning wealth, illegally either individually or in a group thereby violating existing legislation governing the economic activity of government and its administration.

4. Financial Crime

Financial crime as defined by the Economic and Financial Crimes Commission Act of 2004 is any conduct as malpractices or a criminal act, which is detrimental to the interest or development of the financial sector of the economy which are prohibited and are punishable by laws of the nation.

5. Crime

Ogunsakin, A (2006) defined crime as any conducts acts or omission prohibited by law and backed by punishment or punitive sanctions. This work however, sees it to mean any deviant and as offence by any societal or legal definition punishable by such authority.

6. Cyber-Crime

It is unlawful acts of using the computer as tool or target or both. Those acts are engaged through network of computers (internet) with different technologies that operate beyond the traditional territorial boundaries (cyberspace).

7. Money Laundering

Money laundering (prohibition) Act 2004, defined it as a process of passing (or transferring) illegal acquired money through a legitimate business or bank account in order to disguise it illegal origins. It is used in this work to mean the process of criminal activities, by concealing their true origin and ownership and introducing them into the stream of legitimate commerce and finance.


1.9 Plan of the chapters

The study is divided into five chapters, chapter one is an introductory one and encompasses the background to the study, statement of the problem, research questions, objectives of the study, hypothesis of the study, significance of the study, scope and limitations of the study and definition of terms. The second chapter is dedicated to the review of literature while in chapter three research methodology will be discussed, which comprises introduction, research design, population of the study, sampling technique and size, source of data, administration of questionnaire, method of data analysis, and hypothesis testing method. While chapter four will covers data presentation and analysis. Chapter five discusses the summary, conclusion and recommendations.


Chapter Five


Summary, Conclusion and Recommendations

5.1 Introduction

It has been an interesting, though challenging to conduct a research on the assessment of the viability of EFCC in combating financial crimes in Nigeria, Implication for improvement. This last chapter then summarizes the major finding of the research as well as recommendations on how to effectively strengthen the commission in order to perform more efficiently and given herein to precede the conclusion.


5.2 Summary

This research work is aim at examining the assessment of organizational effectiveness of economic and Financial Crimes Commission (EFCC) in combating financial crimes in Nigeria, 2003-2012. The research is divided into five chapters, chapter one dealt with introduction, background of the study, statement of research problems political interference, poor administration and findings, the objective of the study which is to look at the viability of economic and financial crimes commission in combating financial crimes in Nigeria and its implications for improvement. Also the factors that bring about corruption in Nigeria and solution through which EFCC activities can be enhanced. The chapter also dealt with hypothesis, significance and other important part of the study which emphasizes the possibilities and capabilities of the research in future researches.

In the chapter two, the study reviewed the concept of corruption by different scholar observed and overview of economic and financial crimes commission. It can be also put forward that the use of some of the human behavior theories can be immensely important to the issue of corruption in Nigeria.

In chapter three the research focused on the method of collecting the various data for the purpose of qualifying the validity of research. It is through the use of sample size, population of the study that we know the number of workers and general public and the samples that we used in distributing our questionnaires. Also the sampling procedure and instrument that we used for the collection of data are included in this study.

Chapter four of this study is the data presentation and analysis. In this chapter, the questionnaires collected in the field were analysed using sample percentage. Also the hypothesis put forward guide us in our research were tested and the results discussed.

Chapter five is the summary, conclusion and recommendations of the result discussed.


5.3 Conclusion

From the findings of the study, it can be concluded that though the activities of the Economic and Financial Crimes Commission (EFCC) have significantly reduced the rate of corruption in Nigeria, it is ineffective on its combat against corruption and the punishments that exist for the perpetrators are inadequate to serve as a deterrent to those wishing to engage in the acts. Hence, the commission need to be reformed to enhance their operational and financial independence.


5.4 Recommendations

Based on the findings reported on this research, the following suggestions were offered as recommendations.

  1. It is imperative that more prosecution powers be granted to the commission so that it will be independent and not to be use for witch-hunting political opponents.
  2. The punishment for the perpetrators of corrupt practices should be commensurate with the degree of the offences committed, to serve as a deterrent to those wishing to engage in the acts.
  3. The challenge of the commission is inadequate funding of the commission, the government to legislate a law that would enable such commissions to source their funds directly from the Federation Accounts.
  4. The Nigeria judicial process/system should be restricted in such a way as to allow for a speedy but impartial administration of justice as regards criminal and corrupt cases.
  5. The crackdown on political office holder’s especially state governors by EFCC should be extended to other levels of government. Not only that, the EFCC’s search light should equally be beamed on top civil servants who aids the chief executives in looting public funds.
  6. The government must fine tune its machinery with the view of looking into those factors and the leadership must demonstrate the willingness to track and punish corrupt officials and citizens should help in providing the commission with useful information.

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