EVALUATION OF THE PERFORMANCE OF ECONOMIC AND FINANCIAL CRIMES COMMISSION (EFCC) IN THE NIGERIAN ECONOMY

CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND OF THE STUDY

          Evidence abound that the rate at which corruption especially financial crime like advanced Free Fraud (419), Money Laundering were being committed in Nigeria is alarming. Transparency International (TI) has consistently rated Nigeria as one of the top three (3) most corrupt countries in the whole world over the past years. Nigeria has become notorious in financial crimes.

          According to Adekeye (2003:30) said Advanced Free Fraud (419) has brought disrupt to Nigeria all over the world, Nigeria are treated with suspicious all business dealings. Hones (majority) Nigerians suffer as a result.

          In regard to this, Hassan (2004:1) opined that the Federal Government should try to implement an intensive programme of eradicating the menace in the country. This is because, it has the political will to achieve this objective. The most relevant effort is the creation of Economic and Financial Crimes Commission was established by an Act of parliament on December 13th, 2002 by the Federal Government. They started full operation in 2003.  It has high support from the presidency, the legislation and key security and law enforcement agency in Nigeria.

          The commission is primarily charged with the responsibility of eradicating all the economic and financial primes such as; Advances Fee Fraud, Money Laundering, counterfeiting, future market fraud, fraudulent encashment of negotiable instruments, computer credit card fraud, contrast scan, embezzlement of public funds, illegal acquisition of company shares sales of shares which do not exist to unsustecting investors etc said Adetunji (2002:34)

          According to Ajaero (2004:34), he disclosed that our politicians are also not exempted in this financial crimes in Nigeria today, people see politics as a shortcut to becoming a millionaire. Those voted into power use it as an opportunity of looting the public funds, diverting them into their personal account instead of providing the people with dividends of democracy.

          According to Banjo (2004:12), he stressed that corruption has been continue to be a destructive element in the government of Nigeria and the perception of the country in the community nations. It has resulted a lot problems. Thus, loss government, brain drain, electoral malpractices, absence of law and order etc. The preponderance of crime has discouraged numerous, would be investors leading to decreased Foreign Direct Investment (FDI). Nigeria banks lose viable business economic stability resulting in business failure and unemployment.

1. 1. STATEMENT OF PROBLEM

Since the establishment of the EFCC in 2003, it has been involved in the investigation of cases ranging from high profile corruption cases, economic and financial crime commission has been facing some problems after its establishment in 2003 such as advanced free fraud, money laundering, tax evasion, contract scams, identity theft, illegal oil bunkering, bribery, looting and foreign exchange malpractices, counterfeiting, illegal charge transfers, future market fraud, fraudulent encashment of negotiation instruments, computer credit card fraud so this thesis will evaluate the performance of EFCC in the Nigeria economy and give some recommendations.( Faboyede and Samuel, 2013)

1. 1. AIMS OF THE STUDY

The major aim of the study is to examine the evaluation of the performance of economic and financial crimes commission (EFCC) in the Nigerian economy. Other specific objectives of the study include;

1. To examine the state of the economy before the establishment of economic and financial crimes commission (EFCC)

2. Toexamine the general structure of the economic and financial crimes commission (EFCC)

3. Toexamine the impact of the performance of EFCC on the Nigerian economy.

4.  To examine the mode of operation of economic and financial crimes commission (EFCC) 

5. To examine the relationship between the performance of EFCC and the Nigerian economy.

6. To examine the achievements of economic and financial crimes commission in Nigeria within its years of operation.

1.4 RESEARCH QUESTIONS

1.  What is the state of the economy before the establishment of economic and financial crimes commission (EFCC)?
2.  What is the general structure of the economic and financial crimes commission (EFCC)?
3. What is the impact of the performance of EFCC on the Nigerian economy?
4. What is the mode of operation of economic and financial crimes commission (EFCC)? 
5.  What is the relationship between performance of EFCC and the Nigerian economy?
6. What are the achievements of economic and financial crimes commission in Nigeria within its years of operation?
   1. RESEARCH HYPOTHESES

Hypothesis 1

H0: there is no significant impact of the performance of EFCC on the Nigerian economy.

H1:  there is a significant impact of the performance of EFCC on the Nigerian economy

Hypothesis 2

H0: There is no significant relationship between performance of EFCC and the Nigerian economy

H1: There is a significant relationship between performance of EFCC and the Nigerian economy

1.6 SIGNIFICANCE OF THE STUDY

This study will be of importance in educating the general public on the power of EFCC, EFCC has the power to persecute directly without going through the Attorney General’s office. The independence corrupt practices (ICPC ACT, 2000) on the other hand focus on curbing, bribery and corruption in the civil public service and limited in time of those offences committed from year 2000.This study would also be of immense benefit to students and scholars who are interested in developing further studies on the subject matter.

1. 1. SCOPE AND LIMITATION OF THE STUDY

The study is restricted to evaluation of the performance of economic and financial crimes commission (EFCC) in the Nigerian economy.

1. 1. LIMITATION OF THE STUDY

Financial constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview)

Time constraint: The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

1.8 DEFINITION OF TERMS

Crime: Schmalleger (1996:7) defines crime as behaviour that violates the criminal laws of a state, the federal government or local jurisdiction that has the power to formulate such laws. Tappen (Schmalleger 1996:7) defines crime as “… an intentional act in violation of the criminal law … committed without defense or excuse, and penalised by the state as a felony or misdemeanour”. Sutherland (Schmalleger 1996:8) said of crime that it’s “…essential characteristic is that, it is behaviour which is prohibited by the state as an injury to the state and against the state for which the state may react by punishment”. In the same vein, Reid (2003:5) defines crime as “… an international act or omission that violates criminal statutory or case law and for which the state provides punishment”.