Department of Political Science and International Studies

Faculty of Social Science

Ahmadu Bello University

Course Title: Corruption and National Development

Course Code: POLS330

Name: Egbeyemi Olawale Timothy

Matric No: U21PS2009

Assignment

Question: Identify and examine any anti-corruption

institution established in Nigeria to fight corruption and
promote good governance or otherwise

Lecturer: Prof. Isah Mohammed Abass

The Economic and Financial Crimes Commission (EFCC) is one of Nigeria's foremost anti-

corruption agencies, with a specific mandate to combat financial and economic crimes. It was

established in 2003, partially in response to pressure from the Financial Action Task Force on

Money Laundering (FATF), which named Nigeria one of 23 countries non-cooperative in the

international community's efforts to fight money laundering. Here is an in-depth examination of

the commission, highlighting its structure, history, achievements, and most importantly its key

functions, and responsibilities in fighting corruption and promoting good governance in Nigeria.

Establishment and Legal Framework

The Economic and Financial Crimes Commission (EFCC) was established on the 10th of April,

2003 by former President Olusegun Obasanjo through the EFCC Establishment Act 2004, which

was first enacted in December, 2002 and amended on June 4, 2004. The Act enables EFCC to

oversee the investigation of financial and economic irregularities against individuals, corporate

bodies, and national communities. The commission was established with the mandate of

educating, enlightening, and sensitizing the public against corruption and economic crimes.

Before the establishment of EFCC economic and financial crimes constituted a great challenge to

the Nigerian economy and its image profile. This high rate of fraudulent activities, economic

mismanagement, money laundering, and other forms of corrupt practices have over the years

caused the Nigerian people and the government losses. However, the Nigerian government

becoming resolute in curbing the high rate of financial crimes led to the establishment of the

Economic and Financial Crimes Commission (EFCC) in April 2003 under the administration of

Olusegun Obasanjo.
Key Functions and Responsibilities

As stated in the explanatory memorandum of the EFCC Establishment Act 2004, the commission

was set to combat economic and financial crimes, thereby enabling it to prevent, investigate,

prosecute, and penalize economic and financial crimes.

To sanitize the system, the agency is also charged with the responsibility of executing the

provisions of other laws and regulations that are related to economic and financial crimes. These

laws as embedded in Section 7(2) of the Establishment Act 2004 are:

● The Money Laundering Act of 1995

● The Money Laundering (Prohibition) act 2004

● The Advance Fee Fraud and Other Fraud Related Offences Act 1995

● The Failed Banks (Recovery of Debts) and Financial Malpractices in Banks Act 1994

● The Banks and other Financial Institutions Act 1991

● Miscellaneous Offences Act, 1985

● The Criminal Code and the Penal Code

● Terrorism Act, 2011

In the broader sense, the EFCC is tasked with investigating complex financial crimes, including

corporate fraud, tax evasion, and banking fraud. It targets corruption in both the public and

private sectors, including high-profile cases involving government officials. It is also empowered

to prosecute offenders in the courts. It has a legal team that handles the prosecution of cases,

often leading to convictions and sentencing of offenders

The EFCC also has the power to trace and confiscate assets acquired through illegal means. This

includes properties, funds, and other assets both within Nigeria and internationally. The

commission works with international partners to repatriate stolen funds laundered abroad.
Additionally, the EFCC is also charged with conducting public education campaigns to raise

awareness about the dangers of economic and financial crimes. It is also expected to collaborate

with relevant bodies and organizations to promote transparency and accountability.

Structure and Organization

The EFCC is structured to efficiently tackle its mandate, with a hierarchical organization that

includes the following

● Board

● Management

● Directorates and Units

The Board provides policy direction for the operations of the Commission and it is composed of

twenty-two (22) members, including the Executive Chairman, Secretary to the Commission, and

members representing various interests and institutions. The Executive Chairman is appointed by

the President and confirmed by the Senate, for four years and may be re-appointed for a further

term of four years.

The Management of the Commission has the Executive Chairman as the Chief Executive,

assisted by the Secretary to the Commission. Others are Heads of Departments and Units. The

Departments and Units are established to ensure the smooth running of the Commission. These

include the Department of Operations, Legal and Prosecution Department, Financial Intelligence

Unit, and several other specialized units. The Commission also has several zonal offices across

Nigeria to enhance its reach and operational effectiveness

Achievements

Since its Inauguration on April 10th, 2003, EFCC has recorded several significant achievements.

The commission has secured numerous convictions against individuals involved in Money

laundering, advance fee fraud, bank fraud, and other economic and financial crimes.

Notable examples include the convictions of former governors such as Joshua Dariye, of Plateau

State, James Ibori of Delta State, and Diepreye Alamieyeseigha of Bayelsa, all of which were

convicted of misappropriation of public funds and abuse of office. Prosecuting these high-profile

individuals has sent strong signals about the commission’s commitment to fighting corruption.

The EFCC has also recovered billions of dollars in stolen assets and returned them to the

Nigerian government. The commission recently recovered N30 Billion of looted funds, allegedly

laundered by the Ministry of Humanitarian Affairs in the last administration. The commission

recovered sums of N178 Billion, and $185 Million of looted funds in 2016 and N152 billion,

$386 million, and more in 2021.

Additionally, Through EFCC’s rigorous awareness and sensitization, Nigerians have become

more informed about economic and financial crimes. The commission has also gained

recognition from international bodies for its efforts in combating financial crimes.

Challenges

Despite its successes, EFCC is enveloped by a myriad of intricate challenges - most of which are

politically motivated, problems and inadequacies which in one way or another has affected its

operations and its role as the almighty anti-corruption bulldozer in Nigeria thereby making

society perceive them as inactive.

There are allegations of political interference in the operations of the EFCC as the commission

sometimes engages in selective prosecution, influenced by political considerations. During the

administration of former President Olusegun Obasanjo, the performance of the Commission was

adjudged by some public analysts to be marred by the fact that the presidency sometimes used

the Commission to victimize political opponents and perceived enemies. This creates the need

for greater operational independence from the executive branch to ensure unbiased operations.

Limited financial resources and delays in the judicial process also impact the commission’s

ability to effectively carry out its mandate. This often leads to inadequate manpower to handle

sophisticated financial crimes, untimely prosecution, and conclusion of cases. Other challenges

include internal compromise and intrinsic discord from the onus of the agency’s modus

Operandi. There is also a degree of public skepticism regarding the EFCC’s operations

References

Chioke S.C., Nwankwo B.C., and Okonkwo I.V. ‘Economic and Financial Crimes Commission
And War Against White-Collar Crimes in Nigeria. 2023. Journal of Public Administration,
Finance and Law, University of Nsukka. [Link]

Matthew F.B. ‘The role of Economic and Financial Crimes Commission (EFCC) in Combating
Corruption in Nigeria’ 2022. Musamus Journal of Public Administration, Gombe State
University. DOI: 10.35724/mjpa.v5i1.4354

Obara, O. O., ‘An appraisal of Economic and Financial Crimes Commission (EFCC) and the war
against corruption in Nigeria: 2002 – 2008.’ [Link] Thesis submitted to the department of Public
Administration and Local Government, University of Nigeria, Nsukka, 2010.

Ugwuja, D. I., ‘The Economic and Financial Crimes Commission (EFCC) and the fight against
corruption in Nigeria,’ 2016, Journal of Research and Method in Education, pp.74-79

Umar, I., Samsudin, R. S. and Mohamed, M., ‘Ascertaining the effectiveness of Economic and
Financial Crimes Commission (EFCC) in tackling corruptions in Nigeria,’ 2018, Journal of
Financial Crime, Vol.25 no.3 pp.658-668 [Link]