The Project addresses the need for Nigerians to deal decisively with the menace of Financial misconduct at all levels of the national life if significant development would be made. Financial crimes and Misconducts have been identified as the singular bane to Nigeria's dvelopment

1. 1
Arinola Sobowale Okinbaloye
Ola.grace@yahoo.co.uk

2.  Profound appreciation to theWorld Bank Group for the immense
privilege to be a part of this life impacting course.
 Special mention of the dedicated CoordinatingTeam, Susan McAdams,
ScottWhite, Julius Gwyer, Marco Scuriatti, Demet Cabbar.
 And all the Contributing Experts from theWorld Bank Group, the
United Nations, IMF, Foundations, Private Sector and various
development experts drawn from every corner of the Universe.
 The experience would not be complete without the over 25,000
participants drawn from all nations of the world; the discussion forum
particularly proves that theWorld can actually come together to pursue a
common goal devoid of any divisiveness.
 Appreciation to my husband and kids for support and understanding
through the several hours of devouring volumes of invaluable resources

3. Through the period of the course, learning about Financing for Development, vis-à-vis :
1.The financial requirements for funding the very ambitious Sustainable Development Goals
SDGs (estimated to require about $1 trillion per annum globally) over the next 15 years
2.The Current realities that Global Development efforts have hitherto relied on Official Development
Assistance from Donor Countries (Less than 30 countries) which has plateaued in the last few
years to about $135Billion following the Global Economic recession.
3. It translates that, when the 17 SDGs kick off by 2016, there would be a deficit of $871.7Billion
except the Global Development Community (All Nations, Institutions and Individuals) come up
with innovative ways to finance Global Development.
4. Effective Domestic Resources Mobilization has been identified as having a major potential to
significantly contribute, through Public Domestic Finance (BetterTax Administration, increase
productivity etc), Domestic Private funds (Banks, Bonds etc), Foreign Direct Investments,
Remittances, as well as the International Finance Institutions (MDBs, IMF) enhancing their roles in
leveraging available funds as well as offering technical support among other options

4. 2 critical issues inures for Nigeria to meet the SDGs and
consciously avoid the enormous shortfalls of the MDGs
1. The obligation to generate substantial development funds in
addition to the ODA
2. The duty to ensure that every Dollar is spent effectively to yield
maximum development returns
The Project focuses on the 2nd issue as highlighted above.
Without the challenge of Financial Impropriety, Nigeria would have no
challenges generating needed funds to drive its development policies.
The challenge has been and still remains The duty to ensure that every
Naira (Dollar) yields maximum development returns.
Hence theTitle: NO FISCAL RESPONSIBILITY, NO DEVELOPMENT

5.  Nigeria has all the indicators of a wealthy nation and has indeed
generated a lot of revenue over the years which has not translated to the
wellbeing of the populace or any significant development indicators.
 As long as financial impropriety remains the highest perpetrator of
underdevelopment in Nigeria, there is no hope for any meaningful
development in any sector or at any rate until the stifling menace is
significantly curtailed.
 To design any beautiful project without addressing this challenge would
only end up in frustration: several great ideas have been destroyed by
financial malpractices, while others have been rejected where there is no
prospect of kickbacks. Some of the Best Policies have been drafted but
failed woefully at implementation due to corruption.
 This project serves to orientate the consciousness of Nigerians to
embrace good financial practices that would translate to collective
national development.

6.  International Businessman, Sir Richard Branson’s bad experience is case in point
of many businesses gone bad in Nigeria due to the alarming rate of corruption,
and financial impropriety .
This Day Newspapers quote copiously on 8 November 2015 a statement by the
International Entrepreneur in 2012 in reaction to the failed Virgin Nigeria project, which
it partnered The Nigerian Government to establish.
“We fought daily battle against government agents who wanted to daily
make fortune from us, politicians who saw the government 49 per cent as
a meal to seek for all kinds of favor…watchdogs (regulatory body) that
didn’t know what to do and persistently asking for bribes at any
point…Nigerian people are generally nice but the politicians are very
insane…that may be irony because the people make up the politicians.
“But those politicians are selfish…we did make N3 billion for the
Federal Government of Nigeria during the joint venture…realizing that
the government didn’t bring nothing to the table/partnership except
dubious debts by the previous carrier, Nigeria Airways…The joint
venture should have been the biggest African carrier by now if the
partnership was allowed to grow, but the politicians killed it…Nigeria
is a country we shall never consider to doing business again.”
-Sir Richard Branson of Virgin Group

7.  The losses of that single enterprise can be viewed in the overall economic
impact; the government revenue, the job losses, the complimentary
businesses that serve the airline and more.There are sevral businesses
both local and foreign that have been slain on the altars of Nigeria’s
institutionalizedGreed & Corruption
 The Media buzzes on a regular basis of unbelievable sums “lost”, Stolen,
reckless spendings, extra-budgetry spending, “waivers”, falsifications,
overpricing, under-invoicing alterations, unremitted revenues among
others, yet there is little or no penalty.
 It therefore remains an effort in futility to continue to devise new sources
of finance when financial recklessness poses a major impediment to all
other efforts.
 Nigeria’s Financial Rut must be fixed, and all other things with proper
planning will fall in place/

8. The SDGs Goal 16. To Promote peaceful and inclusive societies for
sustainable development, provide access to justice for all and
build effective, accountable and inclusive institutions at all levels
Goal 16.4 by 2030 significantly reduce illicit financial and arms flows, strengthen
recovery and return of stolen assets, and combat all forms of organized crime
Goal 16.5 substantially reduce corruption and bribery in all its forms
Goal 16.6 develop effective, accountable and transparent institutions at all levels
Goal 16 in focus addresses the imperative to embrace good
financial practices as a Development Goal in itself, hence the
SDGs cannot be fully realized without eradicating all forms
of Financial Indiscretion that affects the effective spending
of finances for development

10.  GEOGRAPHY -Set on the West Coast of Africa
bordered to the West by Benin, straddled in the East and
north by Cameroun,Chad and Niger.The South melts into
the Gulf of Guinea in the Atlantic Ocean creating a eclectic
mix of climates and vegetation from the fringes of the
Sahara to the Atlantic within a land mass of slightly below
1million Square Kilometers.
(32nd largest landmass in the world)
 POPULATION – 177.5 Million (7th Globally) ( with Over
500 ethnic groups and 300 languages

11.  ECONOMY- largely based on Petrodollars has a very strong showing in
the OPEC (Organization of Petroleum ExportingCountries) – 12th largest
producer of Petroleum products, 8th largest Exporter of Petroleum
Products, and 10th largest proven Oil Reserve
GDP (PPP) 2015 est
Total -$1.109Trillion (20th Global)
Per capita - $ 6,204 (124th Global)
GDP (Nominal)Total - $573,652Billion
Per Capita - $3,298 (121st Global)
GDPGrowth Rate – 6.2% (Citigroup forecasts Nigeria to get the highest
GDP growth rate in theWorld between 2010-2050 due to the enormous
untapped sources of growth potentials and several profitable investment
opportunities
Debt to GDP Ratio – 11% (8% below Average Global Ratio)
Inflation Rate – 9.3
LABOUR FORCE - 74Million (Due to high youth population)
Nigerian Stock Exchange is the 2nd Largest in Africa - $85.4 Billion
3rd Largest Movie Industry in theWorld

12. INTERNATIONAL RELATIONS –
A Regional Power in Africa
A Middle Power in the International Affairs
An emerging Market for FDI
After Petroleum Export, Nigeria’s 2nd largest FOREX
earnings is Remittances at $21Billion with over
17million Nigerians oversea ( An estimated 2million
Nigerian migrants in UK and US respectively)
LANDMARK ACHIEVEMENTS- In2006 Nigeria was the
firstAfrican country to completely pay off its debt
($30Billion), a clear indication that prudence would
solve a lot more development problems

13.  About 20 of the Fortune 500 GlobalCompanies current have business
presence in Nigeria
 The Citigroup forecasts Nigeria to get the highestGDP growth rate in the
World between 2010-2050 due to the enormous untapped sources of
growth potentials and several profitable investment opportunities
 Goldman Sachs’ Jim O’Neill validates Nigeria on the list of the MINT
Countries (Mexico, Indonesia, Nigeria andTurkey) with good economic
prospects.
 Nigeria also features on The Next 11 Countries with strong development
potentials in the next 20 years after the BRICS (Brazil, Russia, India, China
and South Africa) on the Newly Industrialized Countries List .
Sadly, Nigeria’s potentials though apparent to all, would only remain at
potential level except something is done to redress the crippling Financial
Impropriety.

14. •NIGERIA BOAST A GOOD
MARCOECONOMIC
OUTLOOK
o Low debt to GDP ratio
o Low inflation
oStrongGDP growth rate
•NIGERIA ISTHE LARGEST
ECONOMY IN AFRICA BY
GDP (oil-Based)
•All the gains hang in a lopsided
concentration at the Top of the
society, and does not translate to the
microeconomic realities of civil
Servants, the organized private sector,
entrepreneurs and socially-dependent
folks.
•The paradox to the Largest economy
is that SouthAfrica has emerged the
only Newly Developed Country in
Nigeria by 2010
•As of 2015, Recurrent expenditures
have continued to gulp over 70% of
national budget leaving 30% to Capital
Projects, most of which are never
executed
POTENTIALS PARADOX

15. Nigeria has raked in a
whooping $800 Billion in Oil
revenue in the last 50 years (
Former Group Managing
Director, Nigeria National
Petroleum Corporation)
That is not difficult to
believe where 2014 revenue
was $77Billion (OPEC
Revenue Fact Sheet 2014)
Extreme Poverty remains the
realities of a staggering
33.1% Nigerian population with
another over 40% on the fringes of
Poverty.
Potable drinking water, basic
sanitary hygiene,
In 2015, 47% Lack access to Potable
Water, less than 10% connected to
Public Sewage, with an attendant
Children death annually from
Diarrhoea, cholera
Several Communities cannot boost
of Primary Health Centres
No 100km of standard roads
anywhere in Nigeria outside the
FCT
POTENTIALS PARADOX

16. HUMAN CAPITAL:
1 in every 4African is
Nigerian
Nigeria’s largest economic
potential remains her
Human Resources.
Nigeria has over 50% active
population of her
177.7Million people
•7.5% of that population is
unemployed following World
Bank data for Q1, 2015 that
puts at some 6 million
unemployed and a large
preponderance
underemployed.
•18,000 Naira Monthly ( $91 at
official exchange rate)
minimum wage remains
unattainable especially by the
Sub-National Governments.
POTENTIALS PARADOX

17. AGRICULTURE:
Nigeria’sArable Land is put
at 39.53% of the
923,768km2 , majorly food
crops are produced with the
Nigeria dropping off the
Major Exporter list of Major
exporters of Cocoa, Peanut,
Rubber, Palm Oil, Poultry
Nigeria has not only lost
most of the export markets,
but also has a huge
domestic production deficit
in Rice,Wheat, Barley, and
other foods costing Nigeria
a whooping $2Billion and
more annually on Food
Importation excluding
undocumented and under
invoiced imports.
POTENTIALS PARADOX

18. Financial impropriety in Nigeria has been institutionalized to an extent that many malpractices are
now an accepted standard.
Financial misconducts flow from the Government institutions to the everyday man on the street.
It is easier to prosecute a petty thief or burglary through the Criminal Justice system than to secure a
conviction of Corrupt Public Office Holders.
Corruption has become an acceptable way of life as long as you do not get caught, or you do not
belong to the wrong crowd.
The Swiss Government returned $700million of a former Dictator , and the same money has fizzled
without traces.
All the anti-graft measures have failed because laws alone cannot ensure success where the lack of
impetus stems from the Leadership and replicates through the ranks and files
Sharp Practices is hailed and official processes are replete with bottle necks that makes it impossible
to transact without underhand dealings.
The dearth of Information, data, and documents have been deployed as a strong tool to cover tracks
in spite of the enormous resources ploughed into ICT equipments annually.
The Fiscal Responsibility Act 2007 has remained as puny in implementation as other preceding
bodies which have duplicated functions and yet very minute impacts;The Independent Corrupt
Practises Commission, The Economic Financial Crimes Commission , the Code of Conduct
Bureau with aTribunal ,The Due Process policy,The Bureau of Public Procurement

19. OFFICIAL MALPRACTISES
Public Holders, Public Servants and all levels of
Administration include:
•Bribery and Corruption
•Outright Stealing & Diversion of Public Funds,
facilities and equipments
•Project Malpractices : overpricing, Nepotism issued to
Incompetent Contractors for Kickbacks, Poor Evaluation
& Monitoring, Unexecuted or Substandard delivery
•Cost of Administration is grossly escalated
•Open ended and unsupervised spendings at different
levels.
•Frequent frivolous foreign trips plus
•Lopsided remunerations ( Each Nigerian Legislator
takes a total package higher than the US President)
•Policy Abdication & manipulation

20. PRIVATE MALPRACTISES
It takes someone to take Bribe and another to give it.
Nigerian Citizens are neck deep in malpractices and
everyone seems to wait his turn to get a hand into the
National Cake of PublicOffice
•Tax evasion,
•Tampering with meters and government utilities in the bid
to stretch meager resources
•Stealing,
•Sharp Practices (Fraud, Scam)
•Piracy and Copy Right Infringements
• Fake & Substandard Goods
•Money Laundering & Counterfeiting
•Drug Peddling
•Kidnapping
•Oil bunkering
•Corporate malpractices
Etc

21. Nigeria has lost so much more than it has gained; a lot of wealthy Nigerians are now
preys to the underworld that has thrived due to pervasive underdevelopment, and
lopsided resources distribution as we continue to grapple with the realities of:
 The highly unsatisfactory attainment of the MDGs
 Continuous High level of poverty and underdevelopment
 Total breakdown of infrastructure, obsolete facilities and significant socio-economic
deficits in all sectors
 Increased crime rate & heightened insecurity
 Loss of valuable Expertise to other countries
 Reduction in life expectancy to 52
 Loss of international goodwill due to collateral effects of Nigeria’s underdevelopment
 Loss of further development potentials
 Weakened and frail institutions, systems and services
 Nigeria has become a breeding ground for some foreigners of questionable characters to
ply their trade
 Nigeria is a destination for expired goods, toxic wastes, sub standards goods, with little or
no safeguards.
 And several significant consequences
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22. Nigeria must make very deliberate and concerted effort to stem this ugly tide, and
accelerate it development agenda.
 The Criminal Justice System must be strengthened
 There must be a Strong National Reorientation Effort due to the pervasiveness of
the problem.
 There must be a redress of Work ethics; Freedom of Information andWhistle
Blowing must be encouraged, rewarded and Protected
 The Leadership Must begin to set good examples for the citizens
 There must be a Public-Private Collaboration to drive the much needed change
agenda
 The Government must work quickly to address the lopsided distribution of
wealth and opportunities
 The Active Population must be productively engaged, while Civic Education be
introduced in the educational system
 Malpractices going forward must be publicly condemned and given expeditious
attention
 Accountabilty and transparency must be introduced into all official processes
 ICT components must be explore for maximum administration of Government
Revenues.

23. I remain optimistic that Nigeria has all it takes
to rise and lead the next phases of
Development Drive.
____________________________
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24.  www.worldbank.org
 www.un.org
 www.opec.org
 www.Vanguardngr.com
 www.thisdaylive.com
 Noipolls Limited
 Beyond Economic Growth: Meeting the
Challenges of Global Development,Tatyana
P. Soubbotina withKatherineA Sheram
 Course Materials.