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Title Page Political Economy of Corruption And i TITLE PAGE POLITICAL ECONOMY OF CORRUPTION AND REGULATORY AGENCIES IN NIGERIA: A FOCUS ON THE ECONOMIC AND FINANCIAL CRIME COMMISSION (EFCC), 2000-2010 ii APPROVAL PAGE This is to certify that this research work has met the requirements of the Department of Political of Science, for the Award of a Masters of Science (M.Sc.) Degree in Political Science of the University of Nigeria, Nsukka, and is approved. BY -------------------------- -------------------------- Prof. Jonah I. Onuoha Date (Project Supervisor) ------------------------- ------------------------- Prof. Obasi Igwe Date Head of Department -------------------------- --------------------------- Prof. Emmanuel O. Ezeani Date Dean of Faculty External Supervisor --------------------------- Date iii DEDICATION To the Well Being and Good Health of my Parents, Mr. and Mrs. Nkemegbunam Anselem Uzendu. iv ACKNOWLEDGEMENT To the Glory of God. I am immensely grateful to my supervisor, Prof. Jonah I. Onuoha whose effort ensured the success of this work. Prof, your cordial relationship with your supervisees and the students at large, speaks much of your professionalism and kind spirit, I cannot thank you enough. To my parents, Mr. and Mrs. Nkemegbunam Anselem Uzendu, my siblings (Henry Chukwujike, Colombus Udochukwu, David Ifeanyi, Rosemary Ifunanya and Augustine Chimobi), my uncles and aunt, (Boniface Uzendu, Okezie Uzendu and Marcy Ndu, nee Uzendu and their respective families) etc, I appreciate all of you for seeing me through to the end of the turnel, as the light shines upon me now. To my room-mates, friends and well-wishers: Ukanwa Oghajie E., Ogbu Ejike C., Adibe Raymond C., Eze Ojukwu Onoh, Okoye Kingsley E., Anya Okoro Ukpai, Ukeka Chinedu D., Dickson Agwuabia, Chris Onyekachi Omenihu, Sampson Eziekeh, Ogochukwu Nnaekee and host of others whose influences have helped to shape my life to better. I appreciate the communal living and mutual understanding that exist amongst us. Your company provides me comfort and, makes me feel at home away from home. Thanks to all of you for helping me overcome part of my greatest life challenges. I cannot still forget my special friend, Miss. Roseline Akuabia Emoh, please thanks for everything. All the 2009 Post Graduate Students of the University of Nigeria, particularly those from the Department of Political Science, I wish all of you the best. I extend my gratitude to all the lecturers and staff of the political science department as well as all the staff of Nnamdi Azikiwe Library, University of Nigeria, Nsukka for their big assistance. Please bear with me if your name does not appear on this page, our space is limited. Always remember that you will remain on the limitless page of my heart till eternity. Uzendu Anselem Chinedu. Department of Political Science. University of Nigeria, Nsukka. v LIST OF TABLES Table 1. Logical Data Framework (LDF) for the Study--- --- --- --- 26 Table 2. Abacha’s Loot Profile--- --- --- --- --- --- --- 38 Table 3. Individual Loot Profile in Naira--- --- --- --- --- --- 41 Table 4. Nigeria’s Position in Transparency International Perception Index --- 78 Table 5. Twenty-One Wire Transfer by Nnamani in Foreign Banks--- --- 83 Table 6. Loot by Public Officials Discovered in Foreign Accounts --- --- 86 Table 7. EFCC’s High Profile Cases in Nigeria--- --- --- --- --- 96 vi ABSTRACT This study is concerned with the political economy of corruption and regulatory agencies in Nigeria. It focused on the critical assessment of the performance of the Economic and Financial Crimes Commission (EFCC) in its fight against political corruption in Nigeria since its creation. Thus, this study is guided by the following research questions: (1) Has the EFCC accomplished its statutory mandate in terms of reducing the rate of political corruption in Nigeria between 2000 and 2010; (2) To what extent does dual legitimacy of criminality influence the performance of the EFCC in Nigeria. To achieve our objectives of this study, we relied on the observational technique and documentation as our method of data collection. This implied that data were generated from the secondary sources, which were analyzed with the use of qualitative descriptive analysis as well as table presentations and percentages. We adopted the theory of social production and reproduction as the viable framework of analysis that explained how the activities of the EFCC have been constrained by certain environmental conditions. We observed that the EFCC has remained a tool of social and economic domination of the ruling class over the rest of the society. The study concluded that political corruption will remain unabated in this current social structure of dependence of the EFCC on the ruling class and that EFCC has not accomplished its statutory mandate in terms of reducing the rate of corruption in Nigeria. Unless these environmental conditions change, the EFCC will not accomplish its statutory obligation. However, we recommend that there is need to review the penal codes in our constitution, which will stipulate in clear terms the procedure and punishments for all categories of corrupt practices especially within the public sector. vii TABLE OF CONTENTS Title Page--- --- --- --- --- --- --- --- --- --- --- i Approval Page--- --- --- --- --- --- --- -- --- --- ii Dedication --- --- --- --- --- --- --- --- --- --- iii Acknowledgement --- --- --- --- --- --- --- --- --- iv Abstract --- --- --- --- --- --- --- --- --- --- v List of Tables --- --- --- --- --- --- --- --- --- --- vi Table of Contents --- --- --- --- --- --- --- --- --- vii CHAPTER ONE: INTRODUCTION 1.1 Background to the Study --- --- --- --- --- --- --- 1 1.2 Statement of Problem --- --- --- --- --- --- --- --- 6 1.3 Objective of Study --- --- --- --- --- --- --- --- 8 1.4 Significance of Study --- --- --- --- --- --- --- --- 8 1.5 Literature Review --- --- --- --- --- --- --- --- 9 1.6 Theoretical Framework --- --- --- --- --- --- --- 20 1.7 Hypotheses --- --- --- --- --- --- --- --- --- 24 1.8 Method of Data Collection --- --- --- --- --- --- --- 24 1.8.1 Method of Data Analysis --- --- --- --- --- --- --- 25 1.8.2 Logical Data Framework for the Study --- -- ---- --- --- 26 CHAPTER TWO: A HISTORICAL OVERVIEW OF CORRUPTION AND THE ORIGIN OF ECONOMIC AND FINANCIAL CRIME COMMISSION (EFCC) IN NIGERIA. 2.1 Introduction --- --- --- --- --- --- --- --- --- 28 2.2 A Historical Overview of Corruption in Nigeria --- --- --- --- 28 2.3 The Origin of EFCC in Nigeria --- --- --- --- --- --- 42 viii 2.4 Establishment of the EFCC Act 2002 --- --- --- --- --- --- 44 2.5 The Institutional Structure of the EFCC --- --- --- --- --- 47 CHAPTER THREE: EFCC AND POLITICAL CORRUPTION IN NIGERIA: THE JOURNEY SO FAR. 3.1 INTRODUCTION --- --- --- --- --- --- --- --- 51 3.2 EFCC and Political Corruption in Nigeria --- --- --- --- --- 52 3.3 EFCC and Obasanjo’s Anti-Corruption in Nigeria --- ---- --- --- 55 3.4 EFCC and Yar’dua War Against Corruption in Nigeria --- --- --- 60 3.5 EFCC and Plea Bargain Issue in Nigeria --- --- --- --- --- 62 CHAPTER FOUR: DUAL LEGITIMACY OF CRIMINALITY AND THE PERFORMANCES OF THE EFCC IN NIGERIA. 4.1 INTRODUCTION --- --- --- --- --- --- ---- --- 72 4.2 Dual Legitimacy and Political Corruption in Nigeria --- --- --- --- 72 4.3 The Performance of EFCC in Nigeria --- --- --- --- --- --- 76 4.4 The Ineffectiveness of EFCC in fighting Corruption in Nigeria --- --- --- 91 4.5 The EFCC’s high Profile Cases in Nigeria --- --- --- --- --- 95 CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION 5.1 Summary --- --- --- --- --- --- --- --- --- --- 113 5.2 Conclusion --- --- --- --- --- --- --- ---- --- 116 5.3 Recommendation --- --- ---- --- --- --- --- ------ --- 117 BIBLIOGRAPHY --- -- --- --- --- --- --- --- 120 1 CHAPTER ONE 1.1 BACKGROUND TO THE STUDY The Economic and Financial Crimes Commission (EFCC) is one of the most acclaimed anti-corruption agencies in Nigeria saddled with the responsibility of fighting and reducing the rate of political corruption (financial crimes) in Nigeria. Over the years, their activities and performance have raised unending debate and intellectual controversies on whether they have actually performed or not based on the accomplishment of their statutory mandate since their creation. Hence, there is no agreement among scholars and commentators on the performance of EFCC. Consequently, two contending intellectual divided or schools of thought have emerged to explain the nature and character of the EFCC and how their performance have affected the state over the years in terms of reducing the rate of corruption or not. The first is the bourgeois school while the second is the radical school of thought. Essentially, the bourgeois scholars believe that the EFCC is instituted to curb the menace of corruption in Nigeria. According to them, EFCC has succeeded in accomplishing its statutory mandate by fighting and reducing the rate of corruption involving financial crimes in Nigeria. One of the proponents of the bourgeois scholars, Babafemi, in Alli (2010:1) observed that the EFCC is an enduring institution that is better equipped to deal with all forms of economic crimes in a way that will impact and enhance positively a sustainable national development. He further observes that since June 2008, when Mrs. Farida Waziri assumed office, she had been doing a lot with her team to break records and surpass past records. That in both administrative and operational angles, EFCC has placed 2 several measures and strategies to chart a new course for the anti-graft agency, but has
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