The Economic and Financial Crimes Commission is reportedly investigating around 250 companies and individuals in connection with the alleged misappropriation of funds by Sambo Dasuki. Under Nigerian money laundering legislation, the banks through which the funds were moved were obliged to take a number of steps to enable law enforcement agencies to monitor the movement of funds and prevent misappropriation.
The Criminal Justice Administration Act came into force in May 2015 and was intended to introduce a criminal justice system that promotes efficient management of criminal justice institutions and protects society from crime. However, the media continues to be dominated by stories involving the prosecution of prominent political members that demonstrate that the act has – at least until recently – had no significant effect.
President Buhari's election in 2015 was followed by what appeared to be a spike in enforcement activities relating to alleged corruption, misfeasance in public office and capital market and related infringements. While most of this renewed activity was connected to proceedings and investigations that were ongoing, some was undoubtedly a consequence of the election results.
Since the results of the recent federal elections were announced there has been a spike in enforcement activities relating to alleged corruption, misfeasance in public office and capital markets and related infringements. Most of the action relates to proceedings and investigations that were previously ongoing, but some investigations have presumably been reinvigorated by the election results.
The UK and Nigerian media have reported the arrests of two UK businessmen on suspicion of having bribed a Norwegian official who was allegedly involved in the sale of six ex-Norwegian navy vessels to a private security company in Nigeria. The men are alleged to have paid more than $150,000 to a Norwegian civil servant in order to help secure the sale of the decommissioned vessels by disguising their eventual destination.
The Central Bank of Nigeria's Bank Verification Number (BVN) project requires all bank customers to complete biometric registration (fingerprints and photographs) and obtain a BVN, through which all transactions by that particular customer may be verified. Despite this, however, law enforcement agencies in Nigeria continue to experience serious challenges in dealing with financial crime.
An individual who is currently a member of the federal legislature and had ambitions of becoming the governor of Delta State has reported to the Economic and Financial Crimes Commission that certain "high-ranking members of the ruling People's Democratic Party" demanded bribes in order to arrange for his nomination as the party's candidate for governor of Delta State.
Recent months have seen fraud and bribery return to the headlines. Reports emerged of alleged corrupt payments in a case involving a former oil minister; the High Court cast doubt on the ability of a Nigerian bank to enforce an English fraud judgment obtained against a former bank chief executive; and a former House of Representatives committee chairman on trial for extorting a bribe succeeded in further delaying his trial.
A former speaker of Nigeria's House of Representatives, Dimeji Bankole, was recently acquitted of charges of improperly awarding contracts and embezzling funds while in office. When criminal cases end in this fashion, it is usually because the case was either poorly investigated, poorly presented to the court, or both.
The Supreme Court recently reversed a decision affirming the conviction of a high-profile political appointee for improprieties while in office. The decision has been condemned as "perplexing", likely to "encourage corruption in the country" and "the latest in a long line of judicially orchestrated set-backs for the fight against corruption in Nigeria".
Several significant developments in anti-corruption actions related to Nigeria have occurred outside the country. A prominent case involves four British nationals charged with conspiring to bribe Nigerian officials. However, frustration remains that none of the Nigerian officials who are alleged to have taken bribes have been charged with any offences in Nigeria. In addition, many corruption cases have stalled in the court system.
The Court of Appeal recently overturned the convictions of two former members of Sani Abacha's entourage, who had been accused of involvement in the murder of an enemy of the Abacha regime. This ruling reflects what many consider to be the two biggest obstacles to the adequate investigation and prosecution of criminal cases: lack of capacity in law enforcement agencies and lack of political will to empower such agencies.
In two recent decisions the Federal High Court has held that although the Economic and Financial Crimes Commission has the power to seize assets and seek interim forfeiture orders, it is not entitled to appoint an agent to manage forfeited assets without an express order of the court. However, the validity of these decisions has been questioned and clarification from the Court of Appeal is now awaited.
There have been mixed signals about Nigeria's ability and willingness to address corruption. However, public outcry in response to the lenient punishment handed down to an individual accused of embezzling from the police pension fund seems to have provided impetus for change. The Judicial Council has dismissed corrupt judges and the Bar Association has initiated a challenge to the anti-money laundering law.
The shadow of foreign anti-corruption and anti-money laundering enforcement actions continues to hang heavily over Nigeria. The past few months have witnessed new enforcement activity, all heavily linked to previous action taken in the United Kingdom and the United States and by the Organisation for Economic Cooperation and Development.
The government's fuel subsidy system caused a public outcry when issues of inherent corruption came to light. An investigation was launched, but no one was prosecuted. However, individuals accused of involvement in the fraud - including family members of high-profile politicians - were recently arraigned before the Lagos High Court. Could this indicate an increased effort to address corruption?
It is more than three years since the Central Bank of Nigeria moved to take over a number of banks. Several bank executives were subsequently brought before the courts. Of the seven prosecutions commenced, only one has been concluded. Two such pending cases have generated interest recently, demonstrating the problems encountered by judges, prosecutors and defence counsel alike.
An English court's recent conviction of James Ibori, former governor of Delta State, on charges of fraud and money laundering is just one of several instances in which fraud committed in Africa has resulted in convictions outside Africa. The case adds justification to the perception that the Nigerian authorities – for whatever reason – are content to leave fraud and corruption prosecution to other jurisdictions.