Page 1 of 25

Journal for Studies in Management and Planning

Available at

http://edupediapublications.org/journals/index.php/JSMaP/

ISSN: 2395-0463

Volume 03 Issue 10

September 2017

Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 1

The Dilemma of Financial Illicitness, Insecurity and the Fate of

Democratic Good Governance in Nigeria

Badmus Bidemi. G (Ph.D)

Independent National Electoral Commission, (INEC), Oyo state Headquarters, Nigeria

Distance Learning Centre, University of Ibadan, Nigeria

badmus.bidemi@dlc.ui.edu.ng

Abstract

Given the perpetual weakness of

governmental institutions, prevalence of

informal economies, and undemocratic

nature of African democracy particularly

Nigeria. This study argues that illicit

financial flow (IFF) has become pervasive

and it has undermined Nigerian

government’s effort to reduce poverty and

bridge the gap between the few rich and

poor majority, the study also stressed that

the inability of the government to prevent,

trace, and recover the illicit financial flow

has worsen the security situation,

retarding developmental programmes and

tamed the prospect for democratic good

governance in Nigeria. However, IFF

become widespread due to the high

preference given to democracy promotion

particularly, by the advanced democracies

irrespective of high level corruption that

pervaded African democracies: this kind of

democracy promotion has continued to

gained more priority at the expense of

genuine support for Nigeria to prevent,

investigate, trace and recover illicit

financial flow.

Keywords: Corruption, insecurity,

democratic governance, illicit financial

flow, Nigeria

Introduction

Some of the major challenges

confronting many African states,

particularly Nigeria in the 21st century, are

the issues of illicit financial flow and

insecurity which has their root in the

nature of African economy and the

reconfiguration of post independence

African states by emerging political

leaders. According to Elhiraika (2014) in

the highlight of HLP Report on Combating

Illicit Financial Flow from Africa,

approximately 50billion US dollars was

estimated as monetary loss through illicit

financial flow annually: this constitute

immense depletion on African resources

given the increasing rate of poverty,

unemployment and continue rise in the

population of youth in most African states.

Similarly, The

Global Financial Integrity (December

Page 2 of 25

Journal for Studies in Management and Planning

Available at

http://edupediapublications.org/journals/index.php/JSMaP/

ISSN: 2395-0463

Volume 03 Issue 10

September 2017

Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 2

2008) released its most celebrated

analysis on Illicit Financial Flows from

Developing Countries: 2002–2006: where

the illicit financial flows from all

developing countries were

calculated at $859 billion to $1.06 trillion

every single year. However, the increasing

level of illicit financial flow in Africa and

its detrimental effects on African

development and global economic has

become a huge concern for international

community, developmental partners, UN

and African Union. Thus, enormous

human and material recourses have been

committed to profound strategies to curtail,

investigate, and control illicit financial

flows from Africa.

It is instructive to note that,

corruption through illicit financial flow

become pervasive in Nigeria as a result of

the interwoven nature of corruption and

political stability and the priority that

international community placed on

democratisation above the genuine efforts

to help Africa overcome the syndrome of

corruption, particularly, the illicit financial

flow. According to Badmus, (2017:194)

Nigerian political stability and democratic

transition has been hugely nurtured

through corruption: for instance, the will to

transform from military authoritarian

regime to democratic rule as witnessed in

May, 1999, and acceptance of electoral

defeat and eventual conceding power to

the opposition by then incumbent

government as experienced in May, 2015

irrespective of the ‘corrupt status’ of the

government involved: these political

outcomes were widely celebrated and

given more priority by both Nigerian

government and international community

than the will to curb corruption and

improve well being of Nigerians citizens.

In the same vein, scholars like

Ndikumana and Boyce (2008), have argue

d that pervasiveness of illicit financial flow

have transformed Africa as a continent into

a creditor to the rest of the world at the

detriment of African development and

wellbeing of their populace.

Given the nature of Nigerian

politics pervaded by primordial economic

structures, personal aggrandisement,

conspicuous abuse of the rule of law,

predominantly weak institutions,

prevailing politicization of critical socio- economic and political issues and

mordacious quest for state resources and

power among political elites... The

manifestation of the aforementioned

pathologies in Nigeria has led to

corruption particularly; the widespread of

Page 3 of 25

Journal for Studies in Management and Planning

Available at

http://edupediapublications.org/journals/index.php/JSMaP/

ISSN: 2395-0463

Volume 03 Issue 10

September 2017

Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 3

illicit financial flow (IFF) crimes among

the political elites in Nigeria’s Fourth

Republic. The resultant effects of IFF have

provoked the surge of poverty, economic

crisis, disunity and gross inequality...

which constitute the primary ingredients of

insecurity and impediment to democratic

good governance in Nigeria. This study

argues that widespread illicit financial

flow have worsen the government’s efforts

in reducing trans-boarder crimes,

alleviating poverty, promoting unity,

engenders development, addressing

security challenges and fostering

democratic good governance in Nigeria.

This study is divided into six

sections; introduction, methodology,

conceptual clarification, the study

examines the dynamic nature of illicit

financial flow in Nigeria, the interplay

between illicit financial flow and

insecurity was similarly interrogated,

attempt was made to investigate the

implications of illicit financial flow and

insecurity on democratic governance in

Nigeria, conclusion and suggestions were

also made on how to prevent, trace recover

and re-invest the illicit financial flow for

economic growth and to boost the agenda

for good governance in Nigeria.

Methodology

Qualitative research method was

utilized. Using historical antecedents, the

study investigated the dynamic nature of

illicit financial flows (IFF) in Nigeria with

the intention to examine how IFF has

engendered insecurity and the implications

for good governance in Nigeria.. The data

utilized for this study were basically

sourced from secondary method of data

collection such as: reports of anti graft

institutions on illicit financial flows, extant

literature, media reports on the subject

matter, journals, textbooks and internet

resources. The data collected were

contently analyzed based on the nature and

practical experience of how illicit financial

flow impacted on governmental

institutions and how to prevent, trace,

investigate, recover and reinvest the IFF to

enhance good governance in Nigeria

Conceptual Clarification

Corruption

Attempt at providing succinct

definition of corruption as a concept has

generated more controversies particularly,

on its nature, scope, causes and

consequences among scholars. Several

scholars have defined corruption in