White-Collar Crime in Nigeria

White-collar crime is not a standalone offence recognised under Nigerian legislation. It is an umbrella expression covering several categories of criminal conduct, including fraud, bribery, embezzlement, money laundering, corruption, financial manipulation and certain forms of cybercrime.

The distinction is important because conduct that appears dishonest or commercially improper does not automatically constitute a criminal offence.

Section 36(12) of the Constitution of the Federal Republic of Nigeria 1999 (as amended) provides that a person shall not be convicted of a criminal offence unless the offence is defined and its penalty prescribed in a written law. Written law includes an Act of the National Assembly, a State law and subsidiary legislation or an instrument made under a law.

This constitutional requirement is central to the prosecution of financial and corporate offences. Investigative authorities must identify the particular statutory provision allegedly violated rather than rely on general descriptions such as financial misconduct, abuse of office or economic sabotage.

In Aoko v Fagbemi (1961) 1 All NLR 400, the High Court emphasised the constitutional principle that a person cannot be convicted for conduct that has not been made an offence under written law. The decision illustrates the prohibition against creating criminal liability through custom or moral disapproval where the applicable written law does not prescribe the offence.

A similar principle was considered by the Supreme Court in Bode George v Federal Republic of Nigeria (2014) 5 NWLR (Pt 1399) 1. The case arose from allegations involving contract splitting and other conduct relating to the administration of the Nigerian Ports Authority. The Supreme Court's decision reinforced the need for the prosecution to establish that the conduct charged constituted an offence under written law at the material time.

The decision should not be interpreted as granting immunity for procurement irregularities or misuse of public resources. Rather, it establishes that an accused person cannot be convicted merely because conduct is considered improper where the specific criminal offence and its punishment have not been established under the applicable law.

The practical implication is that an investigation must distinguish between administrative misconduct, civil liability, breach of contract and conduct that satisfies the elements of a criminal offence.

Nigeria's regulation of white-collar crime is distributed across several statutes. Their application depends on the nature of the alleged conduct.

2.1 Economic and Financial Crimes Commission (Establishment) Act 2004

The EFCC Act establishes the Economic and Financial Crimes Commission and provides its statutory functions and enforcement powers.

Section 6 identifies the Commission's functions, including the investigation of financial crimes, examination of reported cases, identification of individuals and corporate bodies involved in such offences, and measures for tracing and recovering proceeds of financial crimes.

Section 7 provides additional powers, including investigation of assets and properties where a person's lifestyle and property holdings appear inconsistent with their known sources of income.

Section 46 defines economic and financial crimes for the purposes of the Act. Its definition includes fraud, money laundering, embezzlement, bribery, looting, tax evasion and other specified forms of illicit economic activity.

The Act is therefore an important institutional and enforcement framework. However, the existence of investigative powers does not dispense with the need to establish the substantive offence and the Commission's legal competence in each prosecution.

2.2 Corrupt Practices and Other Related Offences Act 2000

The ICPC Act addresses corruption and specified abuses involving public officers and other persons.

Sections 8, 9 and 10 address different forms of corrupt gratification and the giving, receiving or facilitating of corrupt advantages. Section 19 addresses the use of office or position to confer corrupt advantages, while section 22 addresses specified corrupt practices relating to public contracts.

The Act is relevant to public procurement, the handling of government resources and transactions involving public officers.

In Attorney-General of Ondo State v Attorney-General of the Federation (2002) 9 NWLR (Pt 772) 222, the Supreme Court considered the constitutional basis of federal anti-corruption legislation and upheld the validity of the Corrupt Practices and Other Related Offences Act.

The decision remains important in understanding the constitutional foundation of federal anti-corruption measures.

2.3 Money Laundering (Prevention and Prohibition) Act 2022

The Money Laundering Act provides the principal legislative framework for preventing, detecting and prosecuting money laundering in Nigeria.

Section 2 restricts cash payments exceeding ₦5 million for individuals and ₦10 million for corporate bodies, except in transactions conducted through a financial institution.

Section 3 addresses reporting obligations relating to international transfers and transportation of funds, securities and cash.

Section 4 establishes customer identification obligations, while sections 7 and 8 address suspicious transaction reporting and preservation of records. Section 10 provides for internal procedures, policies and controls.

Section 18 criminalises specified money laundering activities, including the conversion, transfer, concealment, acquisition, use, retention and control of proceeds of unlawful acts, subject to the statutory requirements and applicable mental elements.

These provisions are particularly relevant to financial institutions and designated non-financial businesses and professions.

Importantly, a compliance failure and the substantive offence of money laundering are not necessarily the same thing. A reporting or recordkeeping breach must be assessed under its applicable statutory provision, while a laundering charge must satisfy the elements prescribed by section 18.

2.4 Advance Fee Fraud and Other Fraud Related Offences Act 2006

The Advance Fee Fraud and Other Fraud Related Offences Act addresses obtaining property and other benefits through false pretences.

Section 1 criminalises obtaining property, inducing another person to deliver property or inducing another person to confer a benefit through false pretences and with intent to defraud.

The provision applies even where the transaction is conducted through a contract.

This is particularly significant in commercial transactions because the existence of a written agreement does not automatically prevent criminal liability where the agreement was induced through fraudulent representations.

Section 10 also provides for offences involving bodies corporate, making corporate liability an express consideration under the Act.

2.5 Cybercrimes (Prohibition, Prevention, etc.) Act 2015, as amended in 2024

The Cybercrimes Act addresses criminal conduct involving computer systems, networks, electronic communications and digital infrastructure.

Section 13 addresses computer-related forgery, while section 14 addresses computer-related fraud.

Section 14(2), for instance, criminalises the sending of an electronic message that materially misrepresents facts, with intent to defraud, where reliance on that representation causes another person damage or loss.

These provisions are relevant to electronic payment fraud, manipulation of digital records, fraudulent electronic communications and other computer-enabled financial misconduct.

The 2024 amendment must also be considered when determining the applicable statutory framework. The original 2015 Act should not be relied upon in isolation where an amended provision applies.

2.6 Proceeds of Crime (Recovery and Management) Act 2022

The Proceeds of Crime Act establishes a framework for identifying, preserving, recovering, managing and disposing of proceeds of unlawful activities.

It provides for both conviction-based and non-conviction-based recovery procedures.

The Act is significant because asset recovery does not always depend on the conclusion of a criminal trial. However, the relevant statutory procedure, evidential threshold and rights of affected third parties must be observed.

2.7 Companies and Allied Matters Act 2020

The Companies and Allied Matters Act provides the framework for corporate administration, directors' duties, financial reporting and corporate accountability.

Sections 65 and 66 address the attribution of acts to a company and the circumstances in which acts of officers or agents may be treated as acts of the company.

The Act is relevant to corporate governance and accountability. Nevertheless, a breach of directors' duties or an accounting obligation should not automatically be described as a criminal offence. The applicable provision must create the relevant offence and prescribe its penalty.

2.8 Evidence Act 2011, as amended in 2023, and Administration of Criminal Justice Act 2015

These enactments are important to the investigation and prosecution of financial offences.

Section 135 of the Evidence Act addresses the standard of proof in criminal proceedings. Section 84, as amended, regulates the admissibility of computer-generated evidence, while sections 84A–84D introduce additional provisions concerning electronic information, electronic records and digital signatures.

Section 270 of the Administration of Criminal Justice Act 2015 regulates plea bargaining in proceedings within its application.

Together, these provisions affect how financial records, electronic communications, digital transactions and other documentary evidence are presented and tested in court.