FORENSIC ACCOUNTING AND THE WAR AGAINST CORRUPTION IN NIGERIA: A NEXUS

FORENSIC ACCOUNTING AND THE WAR
AGAINST CORRUPTION IN NIGERIA:
A NEXUS
Prof. Godwin Emmanuel, Oyedokun
HND (Acct.), BSc. (Acct. Ed), BSc (Acc & Fin), MBA (Acct. & Fin.), MSc. (Acct.), MSc. (Bus &
Econs.), MTP (SA), PhD (Acct), PhD (Fin), ACA, FCTI, ACIB, MNIM, CNA, FCFIP, FCE, FERP,
CICA, CFA, CFE, CIPFA, CPFA, ABR, CertIFR, FFAR
godwinoye@yahoo.com
+2348033737184, +2348055863944 & 08095491026
CITN Council Member/Chairman Education Committee,
Senior Lecturer, Nasarawa State University &
Chief Technical Consultant/President, OGE Group
Being an Alumni Convocation Lecture Presented at the 6th Convocation
Ceremony of Osun State College of Technology, Esa-Oke, Osun State
Held at the College Multipurpose Hall on October 10, 2019

CONTENTS
This presentation will cover the followings among other :
 Protocol and Appreciation
 Introduction
 Methodology
 Concepts of Forensic
 Concept of Forensic Accounting
 Concept of Corruption
 Corruption in Nigeria
 Fight against Corruption
 Political and Financial Corruption in Nigeria
 Forensic Accounting and war against Corruption in
Nigeria
 Conclusion and Recommendation

PROTOCOL
 The Rector
 Deputy Rector
 Registrar
 Bursar
 Coordinator of Library
 Supervisor of Works and Services
 The Chairman, Committee of Deans
 Deans of Faculties
 Directors of Programmes
 All Heads of Departments and Units
 President Alumni Association
 Teaching and Non-Teaching Staff
 Distinguished Guests here present

INTRODUCTION
 Permit me to begin with telling you what we all
know, but this time, in my own language.
Corruption is no man’s relative, but we
intentionally or ignorantly, wine and dine with it.
From the lowest economic unit which is our
individual homes to the largest economic unit, a
country/world economy. Do I need to ask anyone
here what corruption is, and what its elements are?
Forensic accounting on the other hand cannot be
overlooked for the proper communication of this
lecture, our collective purpose of been here is to see
the link that exist between Forensic Accounting and
the war against Corruption in mine and your
country, Nigeria.

INTRODUCTION (CONT.)
 My dear brothers and sisters, distinguished guests
and our indefectible officials of our great college,
permit me to visit some of the concepts and
literatures of reputable scholars that have treated
corruption and forensic accounting in their course of
contributing to knowledge.

CONCEPTS OF FORENSIC
 According to Cambridge Dictionary, forensic means
 (1) related to scientific methods of solving crimes,
involving examining the objects or substances that are
involved in the crime
 (2) using the methods of science to provide information
about a crime.
 Merriam-Webster Dictionary Online defined
forensic as: belonging to, used in, or suitable to courts
of judicature or to public discussion and debate.
 : relating to or dealing with the application of scientific
knowledge to legal problems

CONCEPTS OF FORENSIC (CONT.)
 Forensic, in a general sense, means "related to or used in courts of
law" or "used for formal public debate or discussion". The word is used
in several ways in information technology, including:
 Network Forensics : the capture, recording, and analysis of network
events in order to discover the source of security attacks or other
problem incidents.
 Computer Forensics : (also called cyberforensics) the application of
computer investigation and analysis techniques to gather evidence
suitable for presentation in a court of law
 Forensic Animation : the use of full-motion computer graphics to
recreate an event such as an automobile accident, the collapse of a
building, an assault, or the workings of a mechanical device from a
variety of perspectives
 Forensic Watermark : (also called a digital watermark) a sequence
of characters or code embedded in a digital document, image, video or
computer program to uniquely identify its originator and authorized
user.

DEFINITION OF FORENSIC ACCOUNTING
 Oyedokun (2018) give a comprehensive definition of forensic
accounting “as a scientific accounting method of uncovering,
analyzing, resolving and presenting fraud and white-collar
crime matters in a manner that produces admissible evidence
which is capable of providing or disproving fact in issue
suitable in the court of law.
 Owojori and Asaolu (2009) concluded that forensic accounting
is the bests ever growing areas of accounting that enables in
enhancing the chances of success in day to day life of corporate
firm by surmounting all the vexing and critical problems of
corporate field as panacea. It is the investigation of a fraud or
presumptive fraud with a view to gathering evidence that could
be presented in the court- litigation support.
 Forensic accounting has risen to prominence because of
increased frauds are popularly known as white collar crimes.

TYPES OF FORENSIC ACCOUNTING
Below are some of the most common example:
 Financial theft (customers, employees, or outsiders)
 Securities fraud
 Bankruptcy
 Defaulting on debt
 Economic damages (various types of lawsuits to recover damages)
 Tax evasion or fraud
 Corporate valuation disputes
 Professional negligence claims
 Money laundering
 Privacy information
 Divorce proceedings
 Forensic Accounting Careers

PROFESSIONAL ACCREDITATION BODIES
FOR FORENSIC ACCOUNTANTS
Various professional accreditations that accountants can obtain to further a career
in forensic accounting
 Chartered Financial Analyst® (CFA®) certification
 Certified Public Accountant (CPA) certification
 Chartered Alternative Investment Analyst (CAIA®) designation
 Certified Financial Planner® (CFP®) designation
 Financial Risk Manager (FRM®) certification
 Financial Modeling & Valuation Analyst (FMVA)™ certification
 Association of Forensic Accounting Researchers (AFAR®)
certification

1
4
IMPORTANCE OF FORENSIC ACCOUNTING
 Complex Litigation
 Government Investigations
 Prevention and Risk Management
 Minimized Losses
 Improved Efficiency
 Reduced Exploitation Risk
 Avoidance of Legal Problems
 Improved Brand Reputation and Authority

1
5
SCOPE OF FORENSIC ACCOUNTING
 Forensic Accounting in Culture
 Forensic Accounting in Education
 Forensic Accounting in Management
 Forensic Accounting in Government and
Legislation

THE ROLE OF FORENSIC ACCOUNTING
The Role of Forensic Accounting in Solving the Vexed Problem of Corporate World
according to Owojori and Asaolu (2009) are as follows:
 Giving preliminary advice as an initial appraisal of
the pleading and evidence available at the start of
proceedings.
 Identifying the key documents which should be made
available as evidence is important when the forensic
accountant is acting for the defense and lawyers are
preparing lists of documents to tender in court.
 Preparing a detailed balanced report on quantum of
evidence, written in a language readily understood by
a non-accountant and dealing with all issue,
irrespective of whether or not they are favorable to
the client.
 Reviewing expert accounting reports submitted by the
other party which may have impact on the quantum
of evidence and advising lawyers on these reports.

1
7
THE ROLE OF FORENSIC ACCOUNTING
(CONTD.)
It is observed by Adegbite and Fakile (2012) that:
 Forensic Accounting will provide litigation support service
with appropriate provision of professional services in the
law courts.
 Forensic Accounting will institute good corporate
governance in the public sector which will instill public
confidence in the government and the entire system.
 The traditional auditing has limitation in detecting
fraudulent practices which the forensic accountants will
effectively fill.
 They have the professional ability back up by law to break
into the organization system and examine the books, make
discoveries and present the documentary evidences in the
law courts.

1
8
SKILLS OF FORENSIC ACCOUNTANT
Oyedokun (2018) identified the following skills and/or knowledge are
necessary to serve as an effective forensic accountant:
 Ability to identify frauds with minimal initial
information
 Ability to interview
 Critical mindset
 Knowledge of evidence
 Ability to communicate
 Knowledge of investigative techniques
 Investigative skills
 Ability to identify financial issue
 Ability to interpret financial information

1
9
CONCEPT OF CORRUPTION
Webster's Dictionary Online define Corruption as:
 a dishonest or fraudulent conduct by those in power, typically
involving bribery.
Corruption could also be described as dishonesty, dishonest
dealings, unscrupulousness, deceit, deception, duplicity, double-
dealing, fraud, fraudulence, misconduct, lawbreaking, crime,
criminality, delinquency, wrongdoing, villainy etc

2
0
DEFINITION OF CORRUPTION
 Transparency International (TI) defines
corruption as the abuse of entrusted power for
private gain.
 Corruption can be a challenge, it takes many forms,
and perpetrators are skilled in developing new ways
to be corrupt and cover their tracks.
This definition captures three elements of Corruption:
a. Public and private Sectors
Corruption occurs in both the public and private sectors.
This includes media and civil society actors.
 Actors can be individuals, companies, or organisations such as
a political parties.

2
1
DEFINITION OF CORRUPTION (CONTD.)
b. Abuse of Power
 Corruption involves abusing power held in a state institution
or a private organisation.
c. Benefit
 Both sides involved in the corrupt act benefit, either in terms
of money or undue advantage.
 Sometimes the ‘advantage’ gained may not be ‘undue’ or clear-
cut, but is nonetheless an advantage.
 For example, in some corrupt societies people can only secure
access to public health or education if they pay bribes.
 In such situations, those who can afford to pay have an
advantage over those who cannot.
 The bribe-giver's ‘benefit’ is merely that which his or her
rightful due is anyway.
 Bribe-takers receive an advantage for carrying out functions
that are anyway their duty to perform.

2
2
SCALES OF CORRUPTION
Corruption ranges from small favours between a small number of people
to corruption that affects the government on a large scale
 Petty corruption
 Grand corruption
 Systemic corruption

2
3
CONDITIONS THAT FACILITATE CORRUPTION
Corruption can grow in the following political and economic
environments.
 Imperatives and incentives
 Opportunities for personal enrichment
 Means of corruption – access and control
 Limited risk of detection and
punishment

AIDS TO CORRUPTION
Wikipedia identifies the following conditions to be favorable for corruption:
 Information deficits;
 Lack of investigative reporting in the local media;
 Contempt for or negligence of exercising freedom of speech and
freedom of the press;
 Weak accounting practices, including lack of timely financial
management;
 Lack of measurement of corruption;
 Lacking control of the government;
 Lacking civic society and non-governmental organizations which
monitor the government;
 An individual voter may have a rational ignorance regarding
politics, especially in nationwide elections, since each vote has
little weight;
 Weak civil service, and slow pace of reform;
 Weak rule of law;
 The media;

AIDS TO CORRUPTION (CONTD)
 The size of the economy;
 Weak legal profession;
 Weak judicial independence;
 Lacking protection of whistleblowers;
 Government Accountability Project;
 Large, unsupervised public investments;
 Pay disproportionately lower than that of the average citizen;
 War and other forms of conflict correlate with a breakdown of
public security;
 Social conditions;
 Self-interested closed cliques and "old boy networks“;
 Family-, and clan-centered social structure, with a tradition of
nepotism/favouritism being acceptable;
 A gift economy, such as the Soviet blat system, emerges in a
Communist centrally planned economy;
 Lacking literacy and education among the population;
 Frequent discrimination and bullying among the population.

FORMS OF CORRUPTION
Corruption in Nigeria takes the following forms:
 Political Corruption
 Electoral Corruption
 Police Corruption
 In different sectors
 Human Right Abuse
 Government/Public Sector
 Judicial Corruption
 Corruption in the Education System
 Within Labour Unions
 Corruption in Religion

FORMS OF CORRUPTION (CONTD)
 Corruption in Philosophy
 Corporate Corruption
 Political Party Funding
 Corruption within Political Parties
 Corruption Related to Power Preservation
 Political Party Funding
 Corruption within Political Parties
 Corruption Related to Power Preservation
 Money Laundering (Illegal Proceeds)
 Layering
 Placement
 Integration
 Extortion
 Black mail
 Threat
 Cyber extortion

TYPES OF CORRUPTION
 Bribery
 Types of bribery
 Bribery by public officials
 Bribery by witness in court
 Sporting bribery
 Bank bribery
 Bribing a foreign official
 Bribery in industry
 Causes of Bribery
 Lower salaries of government officials
 The wiliness of citizens to pay bribe for expediting their work
 Wide gap between demand and supply of government services.
 Lack of adequate punishment system for inefficient and corrupt officials.
 Slow justice delivery system in courts
 Use of black money by political parties during campaign
 Inadequate anti-corruption machinery to investigate and prosecute corrupt
officials.
 Lack of performance linked pay in government system.
 Collusions of citizens and government officials to obtain illegal benefits.
 Socially acceptances of corrupt public servants in the country.
 Examples of Bribery
 Active bribery
 Passive bribery

TYPES OF CORRUPTION (CONTD)
 Embezzlement
 Conflict of Interest
 Kickbacks
 Electoral Corruption
 Theft and Fraud
 Graft
 Blackmail
 Influence Peddling
 Networking
 Abuse of Discretion
 Favoritism, Nepotism and Clientelism

CAUSES OF CORRUPTION
According to a 2017 Survey Study by Dimant, Eugen Tosato, Guglielmo, the following
factors have been attributed as causes of corruption:
 Greed of money, desires.
 Higher levels of market and political monopolization
 Low levels of democracy, weak civil participation and low
political transparency
 Higher levels of bureaucracy and inefficient administrative
structures
 Low press freedom
 Low economic freedom
 Large ethnic divisions and high levels of in-group favoritism
 Gender inequality
 Resource wealth
 Poverty
 Political instability
 Weak property rights
 Contagion from corrupt neighboring countries
 Low levels of education
 Lack of commitment to the society.
 Extravagant Family.

CONSEQUENCES OF CORRUPTION
Effects of corruption affect us all, not only the current users of the surface
earth, but also the generation yet unborn. Below are some of the effects:
 Corruption impedes development
 Financial costs of corruption
 The cost of corruption to society
 Human lives
 Trust
 Human rights
 Inequality
 Gender
 Crime and conflict
 Environment

CORRUPTION IN NIGERIA
 According to Wikipedia in July 2015, political corruption is a
persistent phenomenon in Nigeria;
 The rise of public administration and the discovery of oil and
natural gas are two major events believed to have led to the
sustained increase in the incidence of corrupt practices in the
country;
 Efforts have been made by government to minimize corruption
through the enactment of laws and the enforcement of
integrity systems but with little success;
 In 2012, Nigeria was estimated to have lost over $400 billion
to corruption since independence;
 Greed, ostentatious lifestyle, customs, and people's attitudes
are believed to have led to corruption;
 Another root cause is tribalism;
 Friends and kinsmen seeking favor from officials can impose
strains on the ethical disposition of the official as these
kinsmen see government officials as holding avenues for their
personal survival and gain;

CRITERIA OF CORRUPTION FEASIBLE IN NIGERIA
The twenty Criteria can appear in the form of questions — who, how, why
and how often?
Five types of corruption in Nigeria by subject (who):
 Political corruption (subjects: politicians)
 Judicial corruption (subjects: judges and other litigants)
 Commercial (business) corruption (subjects: entrepreneurs)
 Central government corruption (subjects: senior officials)
 Local government corruption (subjects: lower-level officials)
Fifteen types of corruption in Nigeria by the forms
(how):
 Bribery, receipt of illegal proceeds (extortion, kickbacks);
 Theft and privatization of public resources and funds;
 Illegal appropriation (forgery, falsification, embezzlement;
 misappropriation of money, property);
 Abuse of state funds, waste;

CRITERIA OF CORRUPTION FEASIBLE IN
NIGERIA (CONTD)
 Nepotism, favoritism (appointment to the posts of relatives
and friends);
 Promotion of personal interests;
 Collusion (granting preferences to individuals, conflict of
interests);
 Taking gifts to speed up problem-solving;
 Protection and covering up events;
 Abuse of power (intimidation or torture);
 Manipulation of regulation (falsification of elections, decision-
making in favor of one group or person);
 Electoral violations (buying votes, rigging election results);
 Extortion (civil servants illegally set a fee for services or
artificially create a deficit);
 Clientelism and patronage (politicians provide material
services in exchange for citizen support);
 Illegal contributions to election campaigns (transfer of gifts to
influence the content of the policy).

REGULATORY FRAMEWORK/GOVERNMENT AGENCIES
INVOLVED IN FIGHTING CORRUPTION IN NIGERIA
The followings are some of the regulatory framework and government Agencies put in
place to fight corruption;
 The Constitution
 Nigerian Police Force (NPF) Act 1979
 The Independent Corrupt Practices and other related offences
Commission (ICPC) Act
 Economic and Financial Crimes Commission (EFCC) Act
 National Drug Law Enforcement Agency (NDLEA)
 National Agency for Prohibition of Traffic in Persons and other
related Matters (NAPTIP)
 Code of Conduct Bureau (CCB) Act 1979
 Code of Conduct Tribunal (CCT) 1989
 Public Complaints Commission (PPC) Act 1975
 The Criminal Code
 The Penal Code
 National Intelligence Agency Decree (1986)
 National Identity Management Commission (NIMC) Act 2007
 Nigerian Financial Intelligence Unit (NFIU) Act 2018
 Freedom of Information (FOI) Act 2011

FIGHT AGAINST CORRUPTION
Whistleblower Policy
 The Whistle Blowing Policy in Nigeria was been created by the
Federal Ministry of Finance and approved by the Federal Executive
Council in December 2016.
 The policy is targeted at encouraging patriotic citizens to report
criminal acts such as mismanagement or misappropriation of public
funds and assets, like properties and vehicles; diversion of revenues:
financial malpractice or fraud; collecting/soliciting bribes;
procurement fraud; corruption: unapproved payments: kickbacks and
over-invoicing, It also includes violation-of-law regulation, of a
company's policy, or a threat to life. Public interest or national
security.
 Two months after the inauguration of the whistleblowing policy, in
February 2017 the Minister of Information, Alhaji Lai Muhammed
announced it had recovered US$151 million and eight billion naira
(US$26,143.790).
 In January 2018, the chairman of the EFCC announced that the
commission had recovered N473billion in 2017 ($153,744,336). The
amount includes US$43 million recovered from an apartment in
Osborne Towers in Lagos, and money recovered from the former
Minister of Petroleum, Allison Madueke. In April 2018, the EFCC
announced it had recovered 473 million naira (US$1,545,751) from a
former Minister. Senator Musiliu Obanikoro and a former Senator,
Chief lyiola Omisore.

THE NEED FOR GOOD GOVERNANCE
 How on earth do we talk about corruption without the
administration that made or mar the practice? Adherence
to good governance creates an environment where
corruption struggles to flourish.
 Failure to adhere to the practices of good governance
means stakeholders increasingly demand accountability.
 Mass action and strikes are organised in protest as
citizens begin to lose faith in the ability or willingness of
their elected officials.
 Political instability increases. Investment declines. The
sale of shares by investors decreases the value and rating
of companies.
 Their regulators can deny those licences, a stock exchange
listing or the ability to sell products and services.
 Other organisations refuse to do business with them. And
donors or economic organisations grant fewer loans or aid
to nations whose governance is murky.

THE NEED FOR GOOD GOVERNANCE (CONTD)
Key principles of good governance include:
 Honesty
 Transparency
 Responsiveness
 Management independent of governing
bodies
 Rule of law
 Effectiveness and efficiency
 Fairness
 Just
 Accountability

POLITICAL AND FINANCIAL CORRUPTION
IN NIGERIA
Political corruption will be examined more in this current dispensation otherwise known as the
Fourth Republic
Corruption in the Presidency and Federal Executive Council
 The Presidency is the highest political office in Nigeria and it has
been enmeshed with corrupt tendency.
 During the reign of Obasanjo from 1999-2007, the presidency was
involved in a corruption scandal.
 For example, the former vice president, Atiku Abubakar was indicted
by Senate committee set by the Senate Chamber to investigate the
vice president role in the activities of the Petroleum Technology
Development Fund (PTDF).
 Aside the vice president, Obasanjo also used his influence as the
president of the country to acquire shares at Transcrop.
 Further to this, Obasanjo used his political power to persuade the
economic elite of the country to build a presidential library for him in
Abeokuta.
 In addition, the 16 billion dollars that was budgeted for power
generation in the 8-year reign of Obasanjo cannot be accounted for
since there is still erratic power supply in Nigeria. Yar’Adua
succeeded Obasanjo in 2007.

POLITICAL AND FINANCIAL CORRUPTION IN
NIGERIA (CONTD)
Financial Corruption in the National Assembly
 The National Assembly is the watchdog of the executive arm of
government.
 The separation of power in the presidential system of government
allows the National Assembly to checkmate the excess of the
Executive which include financial monitoring of Budget spending.
 However, since the installation of democracy in Nigeria in 1999,
some members of the National Assembly have used the legislative
power bestowed on them to enrich themselves illegally.
 Take for instance, two former Senate presidents, Chuba Okadigbo
and Adolphus Wabara were involved in a corruption scandal.
 Other Senators and honorable members of the national assembly
that have been engulfed in corruption scandals include
Chimaroke Nnamani, Iyabo Obasanjo, Dimeji Bankole and his
deputy, Patricia Etteh and her deputy, Farouk Lawal, Boniface
Emanalo, Ndudi Elumelu and Herman Hembe.
 However, the likes of former speaker Dimeji Bankole and his
deputy, and Edudi Elumelu have been exonerated by the civil
court of corruption charges (Awojobi, 2014).

POLITICAL AND FINANCIAL CORRUPTION IN NIGERIA (CONTD)
Financial Corruption at the State Level
 Corruption at the federal level is also being replicated at the state level.
The immediate past Minister of Finance, Mrs. Kemi Adeosun tasked
Nigerians to ask their governors what they are doing with the federal
allocation they do receive from the federation account.
 This indicates is that most of the governors are using allocation to these
states for their personal gain. That was the reason the former EFCC
chairman Nuhu Ribadu 2006 once said that 31 state governors have
corruption cases to answer.
 However, when Ribadu was replaced by Farida Waziri, she let Nigerians
know that the case files of the 31 governors were missing up to this
present moment. Among the former and present governors in the fourth
republic that have been convicted and have corruption cases with EFCC
are Diepreye Alamieyesigha, James Ibori, Uzor Kalu, Genga Daniel,
Alao Akala, Rashid Ladoja, Samimu Turaki, Jolly Nyame. Others are
Lucky Igbinedion, Boni Haruna, Attahiru Bafawara and Adamu
Abdullahi (Awojobi, 2014).

Manifestation of Corruption in the Nigeria’s Upstream Petroleum
Sector
 Award of licenses for oil exploration and production in the upstream
petroleum sector in Nigeria disregard the due process, whereby create
opportunities for corruption in the sector (Olujobi and Oyewunmi 2017).
 The Petroleum Act gives the Minister of Petroleum and Energy Resources
absolute power to grant oil licenses for oil exploration without any legal
procedure entrenched in the Act to regulate the exercise of such powers and
to prevent abuse of such powers by the minister (Obioma 2012).
 Majority of the petroleum licenses were awarded on a discretionary basis by
the Minister. For instance, in 2011 Eni and Shell Petroleum Companies
were alleged to have paid $1.1 Billion as bribe for the award of oil block OPL
245 to Malabu, the Company purported to be own by the former Nigeria’s
petroleum minister, Dan Etete.
 The Nigeria’s upstream petroleum sector regularly award contracts and
these contracts are characterized with procurement abuses such as tender
rigging and price inflation among others.
 For instance, Halliburton Company admitted to have paid about One
Hundred and Eighty Million Dollars a bribe to the officials of the Federal
Government to secure contract worth over Six Billion Dollars to build the
Liquefied Natural Gas facilities in Nigeria (George and Lacey 2006).

Corruption in the Local Government System: Causes and
Effects
 Corruption is the greatest bane of local government
administration in Nigeria. At the grassroots level, corruption
has been canonically accommodated, entertained, and celebrated
within the system.
 In the local government setting, corruption is misnomerly
labeled and euphemistically referred to as “EGUNJE” (a slogan
which means “illegal offer” in Nigeria). Regrettably, democracy,
which is assumed to be the antidote to corruption, is not well
practiced at the grassroots level.
 Consequently, the level of apathy, cynicism, and poverty is high
among the rural dwellers. Kolawole (2006) laments this
situation when he opines that “in spite of the establishment of
the Independent Corrupt Practices and other related Offences
Commission (ICPC), corruption still thrives in our society”.
 In his analysis, Kolawole was of the view that the lack of funds
was no more a constraint on local government performance, but
a mismanagement and misappropriation of the funds accruable
to it (Kolawole, 2006).

HOW POLITICAL CORRUPTION UNDER-
DEVELOPED NIGERIA IN THE FOURTH REPUBLIC
 Corruption is a by-product of underdevelopment. In
Nigeria, funds that are allocated to the development
of the country after the installation of democratic
governance in 1999 are mismanaged by political office
holders.
 Financial corruption undermines democracy and the
legitimate of the state, reduces the potential for
economic growth, and threatens the freedom and
security of citizens, altogether constitutes hindrances
to national development. Political corruption hinders
development in the new democratic dispensation in
Nigeria:
 Poor social welfare
 Loss of public trust and legitimacy by the government
 Increase insecurity
 Increased poverty and unemployment
 Low investment

SOME OF NIGERIA BOLD STEPS IN FIGHTING CORRUPTION
In May 2018, President Muhammadu Buhari of Nigerian signed
Executive Order 6 of 2018 on the preservation of suspicious assets
connected with corruption and other relevant offences. The
highlights of the Order include:
 any government official, or any person acting directly or
indirectly acting for such official, who engages in corrupt
practices or misappropriation of government assets, will be
subject to disciplinary action under the Public Service Rule and
Code of Conduct Bureau, and such asset shall be forfeited;
 this will henceforth prevent persons guilty of corruption from
continuously holding or controlling assets acquired from the
proceeds of corruption:
 any official found circumventing or preventing the
implementation of the order or perverting justice shall be
prosecuted: and
 Ministries, Departments, and Agencies of the Federal
Government, in consultation with the Attorney General of the
Federation, are to identify and adopt best practices and develop
strategies for the implementation.

SOME OF NIGERIA BOLD STEPS IN FIGHTING CORRUPTION(CONTD)
 The government published a list of fifty (50) individuals currently undergoing
trial for different corruption-related cases and barred from travelling outside
Nigeria. The act of name-publishing was challenged before a Federal Capital
Territory High Court. Moreover, in March 2018, through the office of the
Minister of Information, the Nigerian government published a list of looters.
 The list contained the names of prominent Nigerians. Consequently, some
individuals on the list challenged it in court for violating their fundamental
human rights. This was also followed by libel cases instituted against the
government. In October 2018, a Federal Capital fundamental human rights. This
was also followed by libel cases instituted against the government. In October
2018, a Federal Capital Territory High Court ruled that the looters' list did not
constitute an infringement of human rights.
 In October 2018, the President also issued Executive Order 8 of 2018 on the
Voluntary Offshore Asset Regularization Scheme, (VOARS). The order is
expected to stem the tide of tax offences and money laundering and also bring
more Nigerians under the government's tax net.
 The Federal Government of Nigeria, as part of its anti-corruption fight,
constituted the Presidential Advisory Committee Against Corruption (PACAC) in
August 2015. PACAC has the mandate to promote the reform agenda of the
government on the anti-corruption effort, and to advise the present
administration on the prosecution of the war against corruption and the
implementation of required reforms in Nigeria's criminal justice system. The
establishment of special anti-corruption court has also been mooted.

SOME OF THE CORRUPTION CASES CURRENTLY UNDER
INVESTIGATION OR INVESTIGATED AND UNDERGOING
PROSECUTION OR BEEN PROSECUTED
 In October 2016, some judges' houses were raided by operatives
of the Department of State Security (DSS). This led to their
investigation and prosecution.
 A serving judge of the Supreme Court, the judge was acquitted of
an eight-count charge including money laundering and passport
fraud.
 In February 2017, the EFCC announced it had recovered N3.04
billion (US$9,803,921) in a house in Kaduna State belonging to
the former Group Managing Director of Nigerian National
Petroleum Corporation (NNPC), Andrew Yakubu. Mr Yakubu is
currently being investigated by the EFCC.
 Two ex-governors, Joshua Dariye and Jolly Nyame, of Plateau
and Taraba States respectively, were each convicted and
sentenced by a Federal Capital Territory High Court to 14 years'
imprisonment. However, it is the first time that an ex-governor
has been successfully prosecuted and sentenced in Nigeria.

PROSECUTION OR BEEN PROSECUTED (CONTD)
 In January 2017, Justice Latifat Okunnu of Lagos State High Court
gave judgment against Ontario Oil and Gas Limited and two of its
directors, in the infamous 'subsidy probe' cases, the directors were
charged on six counts and sentenced to a total of 69 years'
imprisonment to run concurrently, for obtaining money from the federal
government by false pretenses. The company was also directed to make
restitution of 754 million naira {US$2,464,952} to the government.
 In March 2017, a High Court in Lagos State convicted Jubril Rowaye
and his firm Brilla Energy Limited in relation to a N963.7 million
subsidy scam (US$3,147,058): Rowaye was sentenced to 10 years'
imprisonment.
 In April 2017, a Federal Capital Territory High Court convicted Jubril
Rowaye and two firms, Brilla Energy Limited and Ai-Arninnur
Resources Limited, of fraud in connection with a N1.05 billion
(US$3.284,313) fraud perpetrated under the petroleum subsidy fund
scheme. The court sentenced Jubril to a further 10 years' imprisonment.

PROSECUTION OR BEEN PROSECUTED (CONTD)
 The former Secretary to the Government of the Federation (SGF),
Babachir Lawal was suspended by the President in 2018 for various
offences bordering on corrupt practices. According to the Federal
Government, the SGF is currently under investigation.
 The formal Director of the Nigeria Intelligence Agency (NIA) was also
suspended and is currently being investigated along with his wife, for the
discovery of US$43 million at a property in Lagos.
 The EFCC is involved in an ongoing criminal trial against a former
Minister of the Federal Capital Territory, Jumoke Akinjide, a former
Senator, Ayo Adeseun, and Olanrewaju Otti for an alleged N650million
(US 2,124,183) fraud-related offence.
 Huge sum of money was recovered and some forfeited permanently to the
Federal Government from the former Minister of Petroleum, Allison
Madueke, Dame Patience Goodluck Jonathan, a former Minister Senator
Musiliu Obanikoro and a former Senator, Chief lyiola Omisore among
others.

SOME SEEMS TO BE FORGOTTEN CORRUPTION
CASES IN NIGERIA
 NNPC missing $20Billion
 $15 million private jet arm scandal
 Abba Moro Immigration recruitment scandal
 Kerosene subsidy scam
 Police pension fund fraud
 Stella Oduah car purchase scandal
 Malabu Oil Scandal
 Farouq Lawan $3m bribery Scandal
 Ekiti Gate

ECONOMIC DEVELOPMENT ISSUES IN NIGERIA
Nigeria is a middle-income country, with emerging market
and mixed economy. It has expanding manufacturing, service,
financial, technology, communications, and entertainment
departments.
Below are 10 issues of economic development in Nigeria:
 Lack of interaction between the government and the
society
 Corruption
 The Macro Economy
 The Human Development
 The market
 Crime and Terrorism
 Unemployment
 The education and University Systems
 The Environment and Health Issues
 The Infrastructure

FORENSIC ACCOUNTING AND WAR AGAINST
CORRUPTION IN NIGERIA
Forensic accounting is relatively new to the Nigeria
system as government at different levels, industries,
political parties, business owners and lawyers among
others hardly required its techniques to fight crime
and criminalities in their domain. But for the few that
found Forensic Accounting techniques useful, we all
witness their success stories.
Oyedokun (2014) recalled the political and electoral
case of the State of Osun, Nigeria in the year 2007,
where the immediate past Governor, Ogbeni Rauf
Aregbesola utilized forensic Accountants in proving his
case up to the Court of Appeal and thereby reclaim his
mandate as the Governor of the State. He called 100
witnesses and tendered 168 exhibits in his quest.

CORRUPTION IN NIGERIA (CONTD)
Also in 2013, the then Governor of Central Bank of Nigeria
and now the Emir of Kano, Mallam Lamido Sanusi came up
with some allegations that the Nigerian National Petroleum
Corporation (NNPC) has not remitted 49.8 billion dollars
generated from crude oil. This unremitted crude oil fund
figure was finally agreed to be 10.8billion dollars. To
investigate this, a forensic audit was carried out by one of
the “Big Four” audit firm by name Price Waters Coopers
(PWC). At the end of the audit, the forensic auditors
concluded that contrary to the belief that 10.8billion dollars
was unremitted, the actual amount unremitted was
1.48billion dollars. This hereby shows how important the
forensic accountants are in solving the problem of corruption
in Nigeria.

Corruption can also affect the various components
of sports activities (referees, players, medical and
laboratory staff involved in anti-doping controls,
members of national sport federation and
international committees deciding about the
allocation of contracts and competition places).
Cases exist against (members of) various types of
non-profit and non-government organizations, as
well as religious organizations. Ultimately, the
distinction between public and private sector
corruption sometimes appears rather artificial, and
national anti-corruption initiatives may need to
avoid legal and other loopholes in the coverage of
the instruments.

 Enofe, Okpako & Atube (2013), argued that Forensic
Accounting have a strong relationship with fraud detection
for public confidence and eradication of crime and
corruption in Nigerian economy. Practically, forensic
accounting, as mentioned by Skousen and Wright (2008)
and Skousen and Wright (2009), is concerned with
discovering the ways of accounting fraud, forensic auditing,
compliance, diligence and risk assessment; detection of
financial misrepresentation and financial statement fraud.
 Bhasin (2007) notes that the objectives of forensic
accounting must include the assessment of damages caused
by an auditor’s negligence, fact finding to see whether an
embezzlement has taken place, in what amount, and
whether criminal proceedings are to be initiated; collection
of evidence in a criminal proceeding; and computation of
asset values in divorce proceedings.

 The goal of forensic accounting, as demonstrated by
Renzhou (2011), is to provide advices to experts as
instruments to determine whether or not the
defendant has to bear legal responsibilities. In that,
the target of forensic accounting refers to court or
lawsuit accounting. Empirical evidence from a study
by Boritz, Kotchetova and Robinson (2008) confirms
that forensic accountants could detect significantly
higher number of fraud than auditors. Srivastava,
Mock and Turner (2003) in their study found that
forensic audit procedures significantly lowered fraud
risks.

SOME NOTABLE NEWS OF CORRUPTION
AND MONEY LAUNDERING IN THE DAILIES
 Abdulrasheed Maina, a former chairman of pension
reform task team, who was arrested in Abuja on Monday,
the 30th Sept., 2019 by the Department of State Service
on the request of the DSS for alleged money laundering,
obtaining money, obtaining money by false pretence,
breach of trust, cheating, official corruption,
embezzlement of public fund and abuse of office.
 The EFCC on Thursday October 3, 2019 arraigned the
duo of Brigadier General Tarelah Paul Boroh (Rtd) and
Hanafi Musa Moriki on a nine count charge, bordering on
the criminal breach of trust to the tune of N974,768,466
and $ 1,914,000. The defendants are said to have on
different occasion, dishonestly converted the sum of
N8,601,571, N106,288,445, N12,078,450, N382,800,000,
N450,000,000, N9,000,000 and more while being public
officers.

SOME NOTABLE NEWS OF CORRUPTION AND
MONEY LAUNDERING IN THE DAILIES (CONTD)
 The Late Chief of Staff, Alex Bade had his properties forfeited
to the Federal Government for the role his played in the
military arms procurement scan while in office.
 The economic and financial crimes commission (EFCC) on
September 30, 2019 arrested 6 suspected internet fraudster
during a raid at their apartment in life camp extension estate,
Abuja. The arrested suspects were identified as Raphel
chibuzor, Oyewumi Adewale, Richard Ayo Abiodun, Onyeogheni
Isioma Progress, Oloyede Faith Damilare and Ibrahim Yusuf
Waziri. Some of the items recovered from the suspects who will
soon be charged to court include mobile phones, laptop
computers, a Toyota Highlander SUV and Toyota corolla car.
 The suspended Chief Justice of the Federation, Walter Onoghen
was investigated, tried and recommended for suspension by the
CCT for under-declaring assets as a public office holder among
other several corruption allegations. The formal CJF was
quoted to have forgotten that such properties and bank
accounts exist.

THE NEW ABODE
 Several politicians cut across different party lines
accused and/or investigated for corruption
allegations includes and not limited to the under
listed
 Notable among them made the nation’s National
Assembly especially the upper arm their abode
 The table below are summarized some of these
politicians, fund alleged
mismanaged/diverted/laundered and their
current political office.

THE NEW ABODE (CONTD)
S/
N
Names Corruption Charges Current
political office
1. Danjuma Goje Accused of mismanaging N25bn
state funds by the EFCC
Senate
2. Stella Oduah Accused of diversion of N3.5bn by
the EFCC
Senate
3. Orji Uzor Kalu Accused of mismanaging N7.65bn
Senate
4. Rochas
Okorocha
Accused of mismanaging state
funds by the EFCC
Senate
5. Gabriel Suswan Accused of mismanaging N3.1bn
Senate
6. Ike
Ekweremadu
Accused of conspiracy, money
laundering and other illicit
dealings by the EFCC
Senate
7. Ifeanyi Ubah Accused of N43bn subsidy fraud
by the EFCC
Senate

THE NEW ABODE (CONTD)
8. Ibrahim
Shekarau
Accused of N950m GEJ
Campaign fund
mismanagement by the EFCC
Senate
9. Theodore Orji Accused of mismanaging N27bn
state funds by EFCC
Senate
10. Abdul Aziz Yari Accused of questionable payment of
N19 billion from the London-Paris
Club refund; N35 billion spent on
Internally Displaced Persons
(IDPs); Ecological and Stabilisation
Fund and mismanagement of
N151,190,477,572.02.
Won election into
the Senate but his
victory was
nullifies by the
court for violating
some electoral
laws
11. Ibikunle Amosun Accused of stockpiling 1,000 AK47
and 4 million bullets
Senate
12. Godswill
Akpabio
Accused of mismanaging N100bn
Federal Minister
13. Chimaroke
Nnamani
Accused of mismanaging N5.3bn
Senate
14. Dino Melaye Accused of illegal possession of
arms, gun-running and sponsoring
hoodlums in Kogi State.
Senate

CONCLUSION AND RECOMMENDATION
Distinguished ladies and gentlemen here present, the
war against corruption would have been properly fought
and won if the government had effectively employed the
techniques of forensic accounting.
 Corruption threatens sustainable economic
development, ethical values and justice;
 it destabilizes our society and endangers the rule of
law.
 It undermines the institutions and values of our
democracy.
 Because public policies and public resources are
largely beneficial the people, it is they who suffer the
harmful effects of corruption most grievously.
 Many acts of corruption deprive our citizens of their
constitutional and their human rights.

CONCLUSION AND RECOMMENDATION (CONTD)
The following suggestions are posited inform of recommendations and if
properly implemented will assist in aiding the war against corruption
in Nigeria.
 Reorientation of the Nigerian citizens and residents,
mindset of our people must change for better,
solidarity rallies for corrupt people must stop.
 Nigeria should effectively adopt forensic accounting
programme to beat down corruption as a social and
state phenomenon.
 Whistle-blower should be rewarded as government
do so promised.
 Our law should be amended to make forensic
accounting a priority.
 Ministries, departments and others offices of the
government should have their financial accounts
scrutinized by forensic auditors before publishing.
 Court orders should be obeyed and adhere strictly
to.

As we can all see, corruption is not a mythic
character that cannot be fought. But to do so,
there is a huge need for cooperation between
citizens and government, and forensic accounting
will be our best option in the regard.
Professor Godwin Emmanuel Oyedokun, PhD
October 10, 2019

MY CONTRIBUTION TO THE DEVELOPMENT
OF THE COUNTRY
AUTHORSHIP LOCAL
PUBLICATION
INTERNATIONAL
PUBLICATION
INTERNATIONAL
CONFERENCE
LOCAL
CONFERENCE
BOOK
PUBLICATION
CHAPTERS IN
BOOKS
TOTAL
Single
Author
1 - - - 10 2 13
Lead
Author
13 18 4 - - 2 37
Co-
Author
26 8 - 15 1 1 51
TOTAL 39 26 4 15 11 5 100
Publication Statistics

CONTRIBUTION TO NATIONAL DEVELOPMENT
VIA NATIONAL NEWSPAPER INTERVIEWS
1. Thisday Newspaper: September 28, 2019 5:36 am Be Strategic with New
Taxes, ACFE Charges Govt.
https://www.thisdaylive.com/index.php/2019/09/28/be-strategic-with-new-taxes-
acfe-charges-govt/
2. Thisday Newspaper: February 16, 2019 12:36 am AFAR Holds First Induction,
Charges Members on Ethics.
https://www.thisdaylive.com/index.php/2019/02/16/afar-holds-first-induction-
charges- members-on-ethics/
3. Guardian Newspaper: 12 February 2019 AFAR collaborates with professional
bodies to achieve fraud-free business environment.
https://guardian.ng/appointments/afar-collaborates-with- professional-bodies-
to-achieve-fraud-free-business-environment/
4. Thisday Newspaper: December 8, 2018 AFAR Elects Chairman of Governing
Council, Others. https://www.thisdaylive.com/index.php/2018/12/08/afar-elects-
chairman-of-governing-council- others/
5. The Nation Newspaper: Lucas Ajanaku February 13, 2019 AFAR: technology
critical to forensic accounting research. http://thenationonlineng.net/afar-
technology-critical-to-forensic-accounting- research-2/
6. Guardian Newspaper: Kehinde Olatunji 14 November 2018 Africa’s $148b
yearly loss to financial crime not well investigated’.
https://guardian.ng/news/africas-148b-yearly-loss-to-financial-crime- not-well-
investigated/

7. Leadership Newspaper: Bukola Idowu November 13, 2018 Africa $148bn
Annual Loss to Financial Crime Not Well Investigated- AFAR Published 3
https://leadership.ng/2018/11/13/africa-148bn-annual-loss-to-financial-crime-
not-well- investigated-afar/
8. December 03, 2015In: Be quick in reporting scam – Chief Executive, Association
of Fraud Examiners. http://sundiatapost.com/2015/12/03/be-quick-in-
reporting-scam-chief-executive- association-of-fraud-examiners/
9. The Nation Newspaper: Nneka Nwanerion: December 25, 2016 The Nation
Newspaper‘Blame corporate fraud on insider abuse’
http://thenationonlineng.net/blame-corporate-fraud-insider-abuse/
10. Businessday Newspaper: September 18, 2017 CITN moves to award certificates,
diplomas in taxation. https://nnn.com.ng/business/business-day/citn-moves-to-
award-certificates-diplomas-in- taxation/
11. Guardian Newspaper: Kingsley Jeremiah | 13 July 2016 Corruption campaign lacks
seriousness, says ACFE President. http://guardian.ng/business-services/corruption-
campaign-lacks-seriousness- says-acfe-president/
12. Thisday Newspaper: Omolabake Fashogbon 05 Dec 2015 Thisday newspaper
Experts Blame Wrong Appointments for Fraud.
http://www.thisdaylive.com/articles/experts-blame-wrong- appointments-for-
fraud/227117/
13. Punch Newspaper: Nike Popoola December 7, 2018 Experts proffer solutions to
financial frauds. https://punchng.com/experts-proffer-solutions-to-
financial-frauds/

14. Businessday Newspaper: Experts uphold forensic accounting as key to combat
fraud, corruption in Nigeria. https://businessdayonline.com/2016/05/experts-
uphold-forensic-accounting-as-key-to- combat-fraud-corruption-in-nigeria/
15. Punch Newspaper: Oyetunji Abioye May 11, 2016 Forensic accounting vital to anti-
corruption campaign – Experts. http://www.punchng.com/forensic-accounting-vital-
anti-corruption- campaign-experts/
16. Guardian Newspaper: Kingsley Jeremiah 11 April 2017 Fraud examiners bemoan
Nigeria’s yearly loss to financial hoax. https://guardian.ng/business-services/fraud-
examiners-bemoan-nigerias- yearly-loss-to-financial-hoax/
http://nigeria.shafaqna.com/EN/NG/4570517
17. Vanguard Newspaper: MARCH 8, 2016 Fraud examiners commend Buhari on fight
against fraud, corruption. http://www.vanguardngr.com/2016/03/fraud-examiners-
commend-buhari-on-fight- against-fraud-corruption/
18. APRIL 22, 2016 Fraud examiners urge FG to probe Nigerians named in Panama Papers.
http://pulse.ng/local/panama-papers-fraud-examiners-urge-fg-to-probe-nigerians-
named-in-report- id4949891.html
19. Thisday Newspaper Godwin Oyedokun August 11, 2018 My Wife Has the Keys, She
Knows How to Get What She Wants from Me.
https://www.thisdaylive.com/index.php/2018/08/11/godwin- oyedokun-my-wife-has-
the-keys-she-knows-how-to-get-what-she-wants-from-me/

20. Gardian Newspaper: Kingsley Jeremiah 26 October 2016 Good governance crucial
to capital inflow, fraud reduction- ACFE Lagos Chapter.
http://guardian.ng/business-services/good- governance-crucial-to-capital-inflow-
fraud-reduction/
21. Thisday Newspaper: November 13, 2018 Group Seeks Adoption of Forensic
Investigations. https://www.thisdaylive.com/index.php/2018/11/13/group-seeks-
adoption-of-forensic- investigations/
22. The Nation Newspaper: Nneka Nwanerion: April 03, 2017 How money launderers
sponsor terrorism – fraud experts. http://thenationonlineng.net/how-money-launderers-
sponsor-terrorism- fraud-experts/
23. The Nation Newspaper: Nneka Nwanerion: November 03, 2016 How to reduce fraud in
organisations, by experts. http://thenationonlineng.net/reduce-fraud-organisations-
experts/
24. Guardian Newspaper: Kingsley Jeremiah 21 April 2017 ‘How to tackle fraud, corruption
to salvage Nigeria’s economy’. https://guardian.ng/business-services/how-to-tackle-
fraud-corruption-to- salvage-nigerias-economy/

25. Thisday Newspaper: September 29, 2018 ICTRD Appoints First Executive
Director. https://www.thisdaylive.com/index.php/2018/09/29/ictrd-appoints-
first-executive-director/
26. Guardian Newspaper: 27 September 2018 ICTRD appoints Oyedokun first
executive secretary. https://guardian.ng/appointments/ictrd-appoints-oyedokun-
first-executive-secretary/
27. Guardian Newspaper: Joke Falaju, Abuja 11 August 2016 Institute to train 40,000
in forensics. http://guardian.ng/news/institute-to-train-40000-in-forensics/
28. Punch Newspaper: Ife Ogunfuwa November 28, 2018 New AFAR chairman plans
journal of forensic accounting. https://punchng.com/new-afar-chairman-plans-
journal-of-forensic- accounting/
29. Bunmi Adesanya 30.11.2015: Nigerian government urged to fight fraud with
technology. http://hub.smafrica.com/nigerian-government-urged-to-fight-fraud-
with-technology/
30. Thisday Newspaper: April 6, 2017‘Organisations Lose
$6.3bn to Fraud Annually’
https://www.thisdaylive.com/index.php/2017/04/06/organisations-lose-6-3bn-to-
fraud-annually/
31. Punch Newspaper: October 3, 2018 Oyedokun becomes ICTRD’s first executive
secretary. https://punchng.com/oyedokun-becomes-ictrds-first-executive-secretary/

FORENSIC ACCOUNTING AND THE WAR AGAINST CORRUPTION IN NIGERIA: A NEXUS

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to FORENSIC ACCOUNTING AND THE WAR AGAINST CORRUPTION IN NIGERIA: A NEXUS

Similar to FORENSIC ACCOUNTING AND THE WAR AGAINST CORRUPTION IN NIGERIA: A NEXUS (20)

More from Godwin Emmanuel Oyedokun MBA MSc ACA ACIB FCTI FCFIP CFE

More from Godwin Emmanuel Oyedokun MBA MSc ACA ACIB FCTI FCFIP CFE (20)

Recently uploaded

Recently uploaded (20)

FORENSIC ACCOUNTING AND THE WAR AGAINST CORRUPTION IN NIGERIA: A NEXUS