Official corruption and the dynamics of money laundering in Nigeria

Abstract

Purpose

This paper aims to examine the interface between official corruption and money laundering in Nigeria and suggest ways of curbing these crimes.

Design/methodology/approach

The relevant laws dealing with these offences were examined to assess the adequacy or otherwise of the statutory provisions. The key provisions of the Criminal and Penal Codes were discussed in addition to the new enactments dealing with these crimes, namely, the Independent Corrupt Practices and Other Related Offences Act, the Economic and Financial Crimes Commission Act, the Money Laundering Act as well as the Code of Conduct Bureau and Tribunal provided for in the 1999 Constitution.

Findings

It was found that these recent enactments have gone much further than the earlier provisions dealing with these crimes. They contain some far‐reaching innovations such as the provision for the appointment of an Independent Counsel to investigate allegations of corruption against the president, vice president, governors and deputy governors. It was also found that a number of problems could, if not properly handled, hinder the effective enforcement of these enactments.

Practical implications

The implication of these findings is that the aforesaid statutory provisions can only be effective if the identified problems of enforcement are adequately tackled and the monitoring mechanism strengthened.

Originality/value

The paper demonstrates in a unique manner, the close relationship that exists between official corruption and money laundering and suggests a fundamental re‐structuring of the social and economic basis of the Nigerian society to minimize the temptation by public officers to engage in official corruption and money laundering.

Citation

Okogbule, N.S. (2007), "Official corruption and the dynamics of money laundering in Nigeria", Journal of Financial Crime, Vol. 14 No. 1, pp. 49-63. https://doi.org/10.1108/13590790710721800