ANTI-MONEY LAUNDERING AND COUNTER-TERRORISM FINANCING IN NIGERIA: A LITERATURE-BASED ASSESSMENT OF ECONOMIC AND FINANCIAL CRIMES COMMISSIONS (EFCC) EFFECTIVENESS
Alkali Mubarak , Andrew E. Zamani, PhD and Usman A. Yusuf, PhD
Volume 13 Issue 1
Abstract
Money laundering and terrorism financing pose significant threats to Nigeria’s national security, economic stability, and governance structures. Despite major legal and policy reforms, particularly the enactment of the Money Laundering (Prevention and Prohibition) Act 2022 and the Terrorism (Prevention and Prohibition) Act 2022, Nigeria continues to face substantial implementation gaps that weaken its Anti-Money Laundering and Counter-Terrorism Financing (AML/CFT) regime. This paper presents a literature-based assessment of the effectiveness of the Economic and Financial Crimes Commission (EFCC) in combating money laundering and terrorism financing. Guided by Deterrence Theory, the review reveals that the EFCC has made notable progress in investigations, prosecutions, asset recovery, and financial intelligence, yet its overall effectiveness remains constrained by political interference, inadequate technological capacity, weak inter-agency collaboration, poor quality of Suspicious Transaction Reports, and judicial delays. The study identifies several gaps in the literature, particularly the limited focus on terrorism financing, non-financial sectors, and enforcement quality rather than conviction statistics. The paper concludes that while the EFCC plays a vital role in Nigeria’s AML/CTF framework, significant reforms are required to strengthen operational capacity and institutional autonomy. It recommends enhanced investment in modern investigative technologies and improved inter-agency collaboration to promote a more coherent and effective national response to financial crime and terrorism financing. Keywords: Money Laundering, Economic Stability, Anti-Money Laundering, Counter-Terrorism Financing
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