This Day (Lagos)

Nigeria: 'Corruption's Nigeria's Biggest Devt Hurdle'

Abimbola Akosile

8 April 2008


(Page 2 of 2)

For others, lack of transparency and oversight and the immunity clause mean that monies allocated to state and local government budgets do not filter down to those they are meant to. This is also an issue of lack of capacity - funds are also misused as there may not be the personnel necessary at the local level of government to manage and monitor budget lines.

This is likely to continue under the president for the foreseeable future. Tackling the constitutional reform would make a difference. Capacity building among communities and in local government is also important however.

TW: In February, Vice President Jonathon Goodluck attributed the persistent poverty in Nigeria to a culture of corruption within the petroleum sector. Would you agree?

ED: To an extent - it is true that there is a culture of corruption within the petroleum sector, but the culture of corruption exists beyond this and it is all linked. Nigeria's problems are often attributed to the petroleum sector because oil can be a corrupting commodity. It is low-labour intensive and delivers super-profits.

Nigeria has earned perhaps $400 million in oil revenues in the last thirty years, and the high oil prices of recent years have brought a windfall, particularly to the oil producing states, yet this has done little to improve the lives of millions of Nigerians. It is the job of government to rid the petroleum sector and others of corruption.

There is a great deal of finger-pointing and portioning out of blame that goes on in Nigeria, but in the end it is the government that is responsible for creating higher standards of conduct for everyone, including oil companies. The success of the Nigerian Extractive Industries Transparency Initiative (NEITI) is an encouraging sign.

TW: What official measures have been taken to tackle the problem of corruption in the oil sector?

ED: Nigeria has gone further than most countries with the Extractive Industries Transparency Initiative. It was the first country to pass a bill on EITI into law and it is one of only two countries (Azerbaijan is the other) to have published a fully audited and reconciled EITI report. The president now needs to take Nigeria forward into its second audit.

TW: Are the Nigerian anti-corruption commissions independent?

ED: There is a lack of clarity regarding the independence of the anti-corruption agencies, the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC). Their legal status with regards to their independence is unclear.

The role of the Attorney General and his part in the fight against corruption has raised questions on this issue. While the establishment act of the EFCC grants it full powers to investigate and prosecute a case, and it has proven itself to be quite robust, for example with the arrest of several former state governors, the Attorney General is empowered to 'make rules or regulations with respect to the exercise of any of the duties, functions or powers of the Commission under the Act'.

President Yar'Adua has focused attention on this directive and many have interpreted this as reducing the powers and independence of the EFCC. The independence of the agencies is also impacted by the politics and power relations of Nigeria.

During the time of President Obasanjo, many argued that the EFCC was only going after his opponents. But I would say that given the political interests, maneuverings and personal risks their staff must confront, the agencies still try to exert as much independence as possible.

TW: Following their visits to Nigeria and subsequent research, what recommendations has the British All Party Parliamentary Group (APPG) on Nigeria made to further the fight against corruption in the country?

ED: The APPG believes that showing international support for the president is important as this will strengthen his position to take reforms forward. The group has also recommended that there be more cooperation within the European Union and with the United States to take action on money laundering within their borders.

The links between the UK and Nigeria are strong and this is why so much of the stolen money from Nigeria has ended up in bank accounts in London. However, if it becomes too difficult for corrupt individuals to launder money in the UK they may simply go elsewhere, this is why greater cooperation is important.

The Group has also recommended strengthening links between relevant institutions and government departments in the UK. The EFCC and Metropolitan Police have a good relationship and good communication, but making progress on corruption also involves the Treasury, the financial institutions, and Nigerian government departments that can share information on individuals' identities.

TW: To what extent does the APPG work or share information with civil society organisations in Nigeria?

ED: The Group attaches great importance to its relationship with civil society in Nigeria. It is dependent on its meetings with civil society members, along with business, political and religious leaders, to gain insights into Nigeria, and so it is vital that every level of Nigerian society is represented as much as possible.

For example, on the Group's last visit to Nigeria it met with members of Save the Children to learn of the daily challenges faced by women and children. The group is always keen to meet with members of civil society in Nigeria and encourages interested parties to contact them so that possible meetings can be planned for future visits.

TW: In a report on their visit to Nigeria in November 2007, the APPG strongly agrees with the Nigerian EFCC's assertion that "the best assistance that the UK can give to Nigeria is not in the form of aid, but assistance to help them clean up Nigeria." What sort of assistance could the UK potentially provide?

ED: The UK can help by working harder to reduce corrupt activities of British citizens and companies. There have not yet been any prosecutions of British parties complicit in corruption. Sharing of data and information would be of direct assistance to the anti-corruption agencies.

Less directly, but most importantly, the biggest difference could be made through support in capacity building: of communities to demand greater accountability; of local government for more effective management; of the National Assembly; and of the anti-corruption agencies.

TW: What does Great Britain already do to support the fight against corruption in Nigeria?

ED: The Metropolitan Police has a Proceeds of Crime Unit, empowered by the 2002 Proceeds of Crime Act. A lot of the money stolen in corrupt activities in Nigeria finds its way into bank accounts in London, so this is why the Metropolitan Police are engaged in fighting financial crime in Nigeria.

The unit shares information with the EFCC and also provides training to EFCC personnel and technical assistance. For its part, the EFCC provides information and evidence to the Metropolitan Police to support investigations in the UK.

The Department for International Development also puts money into programmes in Nigeria to have an impact on corruption, such as building the capacity of the legislature and capacity building of communities to seek greater transparency and accountability of elected officials.

The All Party Parliamentary Group (APPG) on Nigeria was originally established as the APPG on the Niger Delta in February 2005, but a year after its founding the Group expanded its focus to include the whole of Nigeria.

The Group describes its aims as: "to create a better understanding in the UK of Nigeria and the challenges it faces, to build good relations and to support efforts to promote development and social justice in the country."

In order to improve its understanding of Nigeria, the issues affecting it and to hear different perspectives, the Group meets with representatives from the business, NGO and government sectors from both countries.

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