1. Nigeria : Corruption in
Country
Group 16:
Tarun Tyagi(71) ;Vijay Yadav(72) ; Rajani Choudhary(73) ;Amit Makhija(75) ;Himanshu Shekhar() ;

2. Overview
 Background : a few facts
 Administrative system
 Pre and Post Independence
 Performance on Global Indicators
 Effects of Corruption
 Efforts to reduce & recent preventive measures
 Challenges ahead in tackling corruption
 Similarities & Dissimilarities with India
 Suggestions to improve

3. A few facts about Nigeria
• POPULATION: 167 million (47% of the West
African Sub-Region)
• GDP: 7.68% (real growth rate); $2,600 (per
capita)
• Most populous country in Africa
• Seventh most populous country in the world
• Population in 2009 (154,729,000)
• 250 ethnic groups
• Gained independence from Britain in October
1963
• 12th largest producer of petroleum in the world
and 8th largest exporter
• Mineral resources include natural
gas, coal, bauxite, tantalite, gold, tin, iron
ore, limestone, niobium, lead and zinc
Data based on 2011 census

4. System in Country
• Corruption perceived to be • Large labor force
at high levels Natural resources
• Weak policies that deter • Coast line and ports
investment • String private sector
• Political Instability • High stake of FDI
• Weak Infrastructure
• Complex tax system
PROS
CONS

5. Nigeria : Pre and Post Independence
• Nigeria’s corruption rating by Transparency
International in the last six(6) years witnessed
an improvement in 2008 and thereafter
suffered, a steady decline
• Coincidentally, the last six years also witnessed
the reinvigoration of enforcement actions by the
various anti-corruption agencies
• The seeming contradiction can be explained
within the context of the legacy corruption cases
that are yet to be resolved and also fresh
investigations that have been launched into new
cases
• Overall, corruption remains a major governance
challenge in an emerging economy such as
Nigeria. Consequently, it is only with sustained
enforcement actions and extensive governance
reforms over time that will improve the situation

6. Performance on Global Indicators
6 years Scorecard on the
Transparency International
CPI

7. Effects of corruption in Nigeria
 Revenue from Hydro carbons/oil & gas continue to provide
a major opportunity for corrupt practices particularly in the
public sector with a strong private sector conspiracy and
facilitation
 Procurement contract abuses either through
bribes, inflation or bid rigging using
 Outright embezzlement by senior public officials managing
agencies or departments with huge revenues or budgets
 Abuses relating to the management of security votes
 Utilization of complex web of Special Purpose Vehicles
(SPVs)
• The corrupt seem to be shifting destination from the safe
heavens in Europe to Asia and the middle east in hiding
their proceeds of corruption
• Others choose to invest part of the proceeds of crime in
expensive real estates domestically

8. Efforts to reduce corruption
• Nigerian is a signatory to the UNCAC
• UNCAC has been domesticated through the
creation of the Independent Corrupt Practices &
Other Related Offences Commission
(ICPC)Act, 2000 and the Economic & Financial
Crimes Commission (EFCC) Act, 2004
• There is also the Code of Conduct Bureau (CCB)
created under the Constitution of Nigeria, 1999 to
manage declaration of assets by public officers
• Other complimentary anti-corruption bodies
include the Nigerian Financial Intelligence Unit
(NFIU) and the Bureau of Public Procurement
(BPP), 2007
• The Nigerian Extractive Industries Transparency
Initiative (NEITI) Act, 2007
• Nigeria is also signatory to the African Union (AU)
Convention against corruption and the Economic
Community of West African States (ECOWAS)
Protocol on Good Governance
• The above anti-corruption laws/instruments are
collaboratively enforced by the national anti-
corruption authorities

9. Preventive Measures
• Further to the provisions of UNCAC and
other international instruments, Nigeria Investigation/Prosecution/Asset Recovery
has responded by:
• Criminalizing corruption/Money laundering DSP Alameyesiegha Case - Involved in looting
of the Bayelsa State treasury and money
• Embarking on sustained investigation and laundering in the UK. Successfully investigated
prosecution of offenders particularly PEPs by the EFCC in collaboration with the MET
• Tracing and recovering tainted assets Police, tried, convicted and sentenced. Assets of
• Institution of prevention measures through over USD$40 Million recovered domestically
wide institutional reforms and internationally
• Approaching the anti corruption fight as
part of its national economic and political Tafa Balogun’s Case- Looting of public treasury
reforms strategy-the transformational and money laundering. Investigated/Prosecuted
and sentenced in Nigeria. Assets of over USD$5
agenda
Million recovered domestically.
• Ongoing effort to strengthen existing
legislation Prosecution of illegal oil bunkerers in the Niger
Delta region and the confiscation and recovery of
several vessels worth millions of Dollars

10. A few more Preventive Measures
 Enhanced enforcement actions against PEPs in
particular is serving as a preventive tool, reminding
senior public officials that nobody is above the law
 Enforcement actions has also ramped up public
awareness which has triggered a flurry of whistle-
blowing on corrupt practices particularly by civil
societies
 The institution of due process by the Bureau of
Public Procurement has also helped reduce contract
frauds and bid rigging
 The enactment of the freedom of Information
Act, 2011 empowering civil society as an effective
anticorruption watchdog
 The establishment of a Transaction Clearing
Platform (TCP)by the EFCC has equally helped
prospective foreign investors from falling into
fraudulent business proposals and demand for
facilitation payments which are unknown to Nigerian
law

11. Challenges ahead
• The bulk of evidence in foreign bribery cases
is not locally available. Most of the
negotiation and payments were made
abroad and many jurisdictions are not
disposed to sharing such evidence even on
intelligence basis. Those that are
disposed, insist that the normal MLAT
process must be followed
• The slow justice system is a major challenge
making prosecution of corruption cases
windy and frustrating
• The legal framework today recognizes only
conviction based system making asset
recovery a difficult task.

12. Challenges ahead…
• Safe financial heavens abroad have also made the problem of fighting corruption challenging for law
enforcement Agencies in victim States. Proceeds of crime stashed in foreign Banks are never
spontaneously reported until a criminal investigation is launched at which time a lot of the proceeds
have been dissipated or layered and moved to yet other jurisdictions making tracing even more
difficult
• The 2010 Global Witness Report chronicled how British Banks – HSBC, RBS, NATWEST and USB
facilitate corruption and money laundering in Nigeria and Equatorial Guinea.
• Victim States including Nigeria are not involved in the settlement of foreign bribery cases and there is
emerging discourse that seem to confuse who the real victim is in a bribery case and the principle of
‘direct proximate harm’
• The drive for revenue by countries enforcing anti bribery laws on the supply side seem to be
gradually whittling down the real value of international cooperation with countries on the demand side
where transactions for these bribes took place
• There is equally emerging the argument on double jeopardy canvassed by multinational companies
who consider the payment of fines/compensation in several jurisdictions as double punishment.

13. Nigeria: State Potential if corruption was
eradicated

14. Corruption in India: similarities

15. Corruption in India : Differences

16. Suggestions for controlling Corruption
• Sustaining the investigation and prosecution of corrupt
officials and their collaborators in the private sector
• Combine the settlement and the criminal conviction option
to recover assets
• Push for the passage of a non-conviction based
legislation to compliment the conviction based system
• Collaborate with countries whose multinationals are
involved in bribery of Nigerian public officials to bring
them to justice in accordance with the spirit of UNCAC.
• Ensure the enforcement of transparency codes by
Multinationals
• The supply and demand sides are still largely working in
silos and even in cases where they collaborate, there is
mutual suspicion which prevent the exchange of vital
information. This is a negation of the spirit of UNCAC.
The gap must be closed if the global fight against
corruption must succeed.