Ribadu's sack has affected our global reckoning on graft war

BACKGROUND My name is Amadiebube Robert Mbama, I am from Ibiasoegbe in Oru West local government area of Imo State. I am a CAMS, CPA, CFF and ACA and also have a consulting business dealing with financial institutions in the USA, helping them to track money laundering and terrorist financing, Bank Secrecy Act and Office of Foreign Access Control of U.S.A, government everything else.

Sir, why is developed countries known to have a more stable economy being worst hit by economic melt down when compared with their developing counterparts with unstable economies?

 You have to understand that the economy of the developed or western countries is market driven, it is the market that determines what goes but in the developing countries, the government intervenes in every aspect of their economy so it does not truly show implications of what the system is going through. A typical example is Nigeria where the Central Bank and the federal government intervene in everything including even the stock market which is being stage managed, while in the advanced countries, the stock market goes up and down depending on the supply and demand of the market forces. So I think if the economy is left on its own to ride out the economic instability, may be Nigeria would have been worst of than is currently been shown. So the government is actually propping up a lot of what is happening here which in the long run may not be in the best interest of the economy. The economy should be allowed to move up and down depending on the forces of market.

 Could you presently see Nigerian economy as improving when compared with the immediate past administration?

 If you look at certain indices that determine whether we are moving forward or backward, it depends where you are coming from. In U.S they say either you believe that a glass is half full or is half empty. It is either you are an optimist or pessimist but if you look at it pragmatically, things may have improved but not that much. Take for example life expectancy that was 60 years in the 1960's, you can agree with me that life expectancy of Nigeria is in the 40's, so that is not a good sign. Furthermore, if you look at child mortality, you will agree with me that the death indices are fallen, showing that the system is going through a lot of strength but if you look at the G.S.M, virtually every Nigerian have four or five different handsets and networks meaning that if you use that as a yard stick to measure progress, may be I would rightly say that Nigeria is progressing. I would be very fair instead of being too pessimistic that i was really impressed when i drove to Enugu and back home during the festive period, the roads seem to be very well kept and I was really surprised. So, that way they have done a little bit on the infrastructure of the road system in Nigeria but outside that everything else is really bad, including the security of lives and property. You can also agree with me that for you to be secured in Nigeria today, you have to provide your own security and that is what government is supposed to provide for everybody. Let me tell you, if you use road, water supply, security and power supply to measure, I can assure you that Nigeria has really gone backwards when compared with the past. I have been in my village for almost two weeks now without an hour steady supply of power while Ghana can boast of years of uninterrupted power supply. So if you are an industrialist and had the choice of either establishing your industry in Nigeria or Ghana where will you prefer to establish it? If you answer the question correctly, you can see where you are going.

 From your assessment, do you see the anti graft agencies as having lived up to their responsibilities, considering the high wave of corruption in Nigeria?

 I must tell you that am disappointed with the outcome so far just like I said at the presentation I made at the Institute of Chartered Accountant of Nigeria (ICAN). When you say that you are fighting corruption and people that are fighting corruption are themselves corrupt and are at the helm of affairs, it is difficult. I have always asked whether it is possible to give a chicken to the fox to hold, I don't know whether the fox will eat it or let it go, it depends but let me give you an example, so many people have been indicted because of corruption and how many of those people have been jailed. I happened to have the opportunity to chat with some of the Nigerian legislators who handle the EFCC side of the whole legislative process and honestly speaking, they have not done the job to the best of their abilities, they are still lacking woefully, especially when you consider what is going on. If you look at a former Governor who is still a legislator and a senator, and the same person from all indications is under indictment. I think that is a travesty of justice.

 Taking a look at the recent ranking by transparency international, it appears the current position of Nigeria is in conflict with yr assessment?

 The ranking by Transparency International is like anything else, they have a time lag or frame and looked at the past strength at the time the former EFCC boss Mallam Nuhu Ribadu was still in power, when the rest of the world were still looking at Nigeria as making progress even though Ribadu himself is not a saint. I must tell you that a Nigerian legislator who was in the U.S. for anti-money laundering conference in Las Vegas told me and you can quote me that the fear of EFCC and Ribadu is the beginning of political wisdom in Nigeria. I was very impressed that at least Ribadu was able to instill fear in our politicians and as soon as that stops happening, I can assure you that things will start taking a return for the worse. As for ranking yes I will agree that it improved but just because they said Nigeria was gradually moving in the right direction but right now, I don't think that the international community is looking at Nigeria that way so let's wait and see next year where Nigeria will be in the ranking.

 Do you support those advocating for life imprisonment on any public office holder found guilty of corruption in Nigeria.

 Life imprisonment may be because of my western orientation I would say yes so that I don't go as far as China that theirs is execution. China executed their second in command for being corrupt and I can make bold to say that the problem we have in Nigeria today is that people commit all manner of atrocities and get away with them. I have continued to tell people all over the world that what happens in Nigeria also happen in any other place in the world but the only difference is that in Nigeria, people get away with whatever crime they commit but once you put effective rules and regulations that should be no respecter of anybody nor matter how highly placed you might be, then these corrupt practices could be stopped. So, life imprisonment is the least we can do to stop this run away corruption that has completely humbled Nigeria and had completely destroyed our economy. The Nigerian economy is completely in shamble and we can watch and see now that oil money has gone down what happens in few months or years.

 As a financial expert, what could you say are the economic implications of this mass movement of our funds out of the shores of Nigeria?

 Well, the worst thing anybody can do to any economy is to take money out of that economy that is supposed to be used to develop the economy. Anybody can pick up economics 101 and read it, one hundred naira can have what is called a multiplier effect and before you know it that one hundred naira will multiply to one thousand naira. For example you give one hundred naira to a market woman and she goes to the market and probably buy a bag of beans, she comes home and sell that one bag of beans to others who process it into either akara or moi moi may in turn sell to other people and it continues in that order. Take the opposite effect by taking out the one hundred naira outside the country instead of giving it to that market woman and you will agree with me that the one thousand naira that would have grown out of the one hundred naira is gone out of the economy, so it can shrink the economy by making life miserable to quite a lot of people. What is your take on this issue of over dependent of the Nigerian economy on oil? There is what we call the welfare mentality in U.S., there are some people in U.S that do not work, government gives them money and as such they become so lazy to the extent that they find it very difficult in the morning to even get up like so many others who by that time should be on their way to work as early as possible. They sleep till ten oclock because at the end of the day they will get paid by the government and as such have remained poor even though they don't care. So, Nigeria has developed sole dependent on oil and has become so lazy to do any other thing except to wait for that oil money to come in. Fortunately, Nigeria is endowed with a lot of natural resources both human and materials to the extent that if Nigerian government is true to its course, we would have transformed this economy into one of the most viable economy in the world, it would have been one of the most potent economy in the world. Unfortunately, the dependency on oil money has ruined Nigeria and the earlier we move away from this over dependent on oil, the better for us. Looking at it politically, if Nigeria had not solely depended on oil, the Nigeria Delta issue wouldn't have existed because the issue wouldn't have existed in the place because there wouldn't have been any basis for holding Nigeria to ransom, but right now, they have the power because all the money that comes into the system is generated from there. Once you move the economy away partly from oil and then diversity for example, in the 60s when there was lots of groundnut and pyramids from the North, and a lot of palm oil and kernel produced from the East, cocoa and all that from the west, Nigeria was almost like a bread basket if not for the whole Africa but to west Africa but what is happening now? We have lost virtually everything. So that is not good and it is as a result of over dependent on one commodity which is oil.

 What do you suggest as the way out of the fast declining economy of Nigeria?

 Nigeria should go back to the basis, first and foremost, there is too much concentration of power at the centre which is the FCT, Abuja should not be the centre of everything just like Lagos in the past. Nigeria should decentralize the economy in such a way that there will be seats of economic power at the various regions or zones in the country just like I advised some of my friends at the EFCC and legislators who are into these areas. First, lets sanitize the system and the best way to do that is to start at the local level. Ten local governments areas each could be taken from each zone especially those that are highly funded and let EFCC go in or even any government auditor that will not take bribe even though most of them are corrupt and if they can swear to do the job to the best of their abilities, they can go in their specifically to review these finances for at least five years and once you do that, give this country one year and you will see a lot of development. The problem like I earlier said is too much concentration of power in Abuja and as such every decision or directive comes from there. However, anything that is too concentrated at least will also be too corrupt. When you decentralize authorities, then you decentralize corruption too. A typical example is my trip to Awka to get my E-passport but surprisingly I could not get it for three days because they said they were waiting for line to go through to Abuja . That kind of situation in the first place shouldn't have arise because Awka ought to be a centre of its own where one could go and get it straight without those stories and process. So you can be rest assured that the person in Abuja by that type of arrangement will capitalize on the opportunity to selfishly enrich himself to the detriment of the economy. The economy is the way it is toady because the system is really bad, if the economy is to be decentralized, it is also important to make sure that those who will be assigned to monitor the system are honest people, of course I know that it is a very tall order in Nigeria because I don't know what else to say than to go the Nigerian way of keeping our fingers crossed and pray to God to change the situation because that is all Nigerians believe in, hence nobody wants to use his brain to change the economy positively except for God to come down from heaven to do it himself. I will like to end this interaction with a funny story I keep telling people I come in contact with somebody was drowning and God sent someone with a very little boat to rescue him and he said go I am waiting for God to come and rescue me, God sent another man with a big ship and he still insisted that he is waiting for God to come and rescue him and eventually died and went to heaven, when he saw God he asked him why didn't you come and rescue me and God said what do you want me to do, I sent you a small boat you refused, I sent you a ship you refused, so you want me to come down and bring you up. So God has given us all the powers, all the resources in the world to be the best country in the world.

CORRESPONDENT JUSTIN OZUZU BARES HIS MIND ON A WIDE RANGE OF ISSUES, EXCERPT

Money laundering is defined as the process of concealing the existence, illegal source, or application of income derived from criminal or illegitimate activity, and the subsequent disguising of the source of that income to make it appear legitimate (Association of Certified Anti-Money Laundering Specialists - ACAMS). Laundered money is like water, it seeks the path of least resistance (ACAMS).  Initially, money laundering was associated with drug trafficking and organized crime, however, it has been expanded to include extortion, terrorism, official bribery and corruption, arms smuggling, white collar crime and many other crimes. Every one of us understands how business is done in Nigeria. Even at the lowest level, for you to see Oga, you must bribe the gateman or receptionist to be able to see Oga. In this article, I will not concern myself with the little guy but the main players who have brought Nigeria to its current pathetic position developmentally.

When it became obvious that money laundering was having a negative effect on the economies of the world, the Group of Seven industrialized nations met in 1989 in Paris and formed the Financial Action Task Force (FATF). Currently, Nigeria is the only country in world which is still on the list of non-cooperative countries and territories (NCCT). The most notable negative effect of being in this list is that financial institutions around the world are warned to take extra due diligence in dealing with any country in the list and the cost of doing business with such a country is astronomical. In other words, there are financial, reputational, and legal risks associated with doing business with a country on the list. (Nigeria was removed from the list on June 23 2006)

The purpose of FATF was to develop a common approach to fight money laundering. In 1990, FATF established and issued its Forty Recommendations that set out a frame work for anti-money laundering efforts in the public and private sectors and designed a process for universal application. The recommendations were revised in 1996 and in 2003 to provide a comprehensive set of counter-measures against money laundering covering the criminal justice system, law enforcement, the financial system and its regulation, and international cooperation. The Recommendations of 2003 now apply also to Terrorist financing. The Terrorist financing part was issued in the aftermath of the 9/11 terrorist attacks in the USA.

The greatest beneficiaries of the post 9/11 terrorist attacks are Africans. Africans are the beneficiaries because their leaders who are very eager to deposit laundered money in the western financial institutions being forced to declare the source of their ill-gotten fortunes, and are finding it difficult to launder these funds to gain respectability. Before the 9/11 terrorist attacks, the banks and other financial institutions looked the other way when African corrupt government officials dumped their ill-gotten wealth in western financial institutions because of the economic beneficial effects those deposits have on their economies. Once at Federal Deposit Insurance Corporation (FDIC) anti-money laundering conference (pre 9/11), I asked why we were concerned only with how money left the U.S. and not how money come in. The response at that time was we didn't care much about money coming in to the U.S., however, that attitude changed immediately after 9/11. Now the U.S. and the other western countries are not only concerned with money coming into their countries but also money leaving the U.S. and other the western financial institutions. This is a self-interest or preservation on the part of the U.S. and other western countries, and it is not done with altruism, rather it is the fear that African leaders are too corrupt and they can be very susceptible and can easily be used by terrorists to launder money. This fear has led to the development of a comprehensive list worldwide of politically exposed persons (PEPs) and financially exposed persons (FEPs). PEPs and FEPs include not only the family members but close friends and acquaintances of public officials. Major financial institutions in the west and financial centers of the world maintain this list and financial regulatory agencies in the U.S. are required to review deposits to make sure that financial institutions are doing their due diligence when it comes to opening new accounts. Financial institutions are discouraged from opening accounts for PEPs and FEPs. Since the private banking section of the financial institutions are more vulnerable to the activities of PEPs and FEPs, they are especially required to perform extra due diligence and apply the know-your-customer procedures. Financial institutions are currently being held to a very high standard and many financial institutions have been fined for taking the anti-money laundering policies and procedures very lightly.

One of the most important of the 40 Recommendations of FATF is for countries of the world to establish financial intelligent units (FIUs). The FIUs are required to keep records of currency transaction reports and suspicious activity reports filed by financial institutions. They are required to cooperate with law enforcement agencies to track money launderers and Terrorists financing activities. The FIUs are also required to cooperate with each other and that is why the Nigerian economic and financial crimes commission (EFCC) is cooperating with the British unit on tracking Nigerian officials that are laundering money. The recent arrest of the governor of Bayelsa is as a result of the cooperation of the FIUs. The problem I have with EFCC is the allegation that it is being teleguided by the presidency and that it is turning into a big stick to witch hunt the enemies of the president. The Nigerian factor is creeping into the activities of EFCC. If the EFCC is allowed to operate like its counterparts in the other parts of the world, corruption will begin to abate.

As a result of the cooperation between the EFCC and other financial institutions around the world, there has been a dramatic drop in the number of foreign trips undertaking by Nigerian officials especially the governors. In many laundering articles and journals, Abacha occupies a dubious position with Marcos of the Philippines and similar money launderers from around the world. Nigeria features prominently because Nigeria is considered the most corrupt country in the world. Bangladesh is now considered the most but in terms of financial impact on the populace, Nigeria is still the most corrupt. I just came back from a Bangladesh non-bank financial institution in New York. This is a company that transmits money to Bangladesh. I could see why the country is one of the most corrupt. This article is not about Bangladesh but Nigeria.

The impact of money laundering on the Nigerian economy is incalculable. For each $1 million dollars taking out of the Nigerian economy, thousands of jobs are lost and many hospitals are left without medicine, many schools are left without text books and the list goes on. On the flip side, the $1 million dollars deposited in a western financial institution, thousands of jobs would be created, hospitals would be filled with medicine, many schools will be filled with text books and the list goes on. As a result of the positive impact the laundered money had on the economies of the west, the western governments and financial institutions looked the other way until the events of 9/11.

In this brief article, I have tried to explain what is money laundering, the development of FATF, FIUs, PEPs and FEPs and its potential positive impact on African economies especially the Nigerian economy. In subsequent articles, I will delve into the types of money laundering engaged by Nigerian officials and what we can do to stop or at least minimize money laundering by Nigerian officials.

Amadiebube Robert Mbama MBA, CPA, CAMS

MBAMA & Associates LLC

Can we meet you sir? Who is Amadiebube Mbama? Amadiebube Robert Mbama is an Anti Money Laundering/Anti Terrorist Financing/Bank Secrecy Act/Office of Foreign Asset Control consultant resident in the United States of America. Amadiebube retired as a Supervisor of Financial Institutions with the State of California. Amadiebube was a former online faculty member of Accounting and Finance classes at the University of Phoenix. He is also currently the Chairman of the Institute of Chartered Accountants of Nigeria USA District Society. The District Society covers United States and Canada. He has BS in Accounting, MBA in Finance and Banking, he is a Certified Public Accountant (USA), an Associate Chartered Accountant (ICAN Nigeria), a Certified Financial Forensic (USA), and a Certified Anti Money Laundering Specialist (USA).

What is the highpoint of your career as an Accountant?

I have had many highpoints as an accountant but the highest one was when I was elected the Chairman of the ICAN USA District Society. It is always a very big honor when your professional colleagues recognize your professional and leadership competence.

Can you give us an insight as to how corruption can undermine economic development in Nigeria in view of the country's experiences since 1999, if possible with the backing of statistics or data available to you?

There is a very strong correlation between high level of corruption and underdevelopment or no development at all. There is also a very strong correlation between indiscipline and high level of corruption. I am not going to bore anybody with the information that has been published by local newspapers such as spending at least $16 billion dollars to improve electricity and yet electricity output did not improve. The economic impact of such a huge waste is catastrophic especially to the manufacturing companies and that is why they are leaving the country. The high level of corruption is attributable to the insecurity in the country which could be traced to the number of secondary school graduates and tertiary institutions graduates that are unemployed. Some of the parents of these unemployed youths borrowed and sold some of their valued property to see their kids through school only for those kids to come out and become unproductive members of the society. There is a saying ‘an idle mind is the devil’s workshop’. Could you imagine the multiplier effect of $16 billion dollars that is injected into the productive sector of the economy? Could you imagine how many jobs that would have been created? We have a proverb that says ‘if you look up and spit in the air, it comes back on your face’. That is exactly what is happening to Nigeria at the moment. The most worrisome aspect of what is happening in Nigeria is that those in power do not see or refused to see the negative consequences of corruption to the economy and to the people. The two statistics below is self explanatory and speak volume. The correlation between very low corruption perceptions index and underdevelopment is self evident. Likewise the correlation between very low corruption perceptions index and low life expectancy is noteworthy. Nigeria ranks 220 out of 222 countries in the 2011 Life Expectancy estimate. Only two countries Afghanistan with 45.02 and Angola with 38.76 performed worse than Nigeria. It is sad that in the 21st century Nigeria does not have a functional rapid response system to help not only in national emergencies but also on individual emergencies especially health emergencies.

This paper was presented by Amadiebube Robert Mbama, MBA, ACA, CFF, CPA, CAMS at the ICAN conference held at the International Conference Center in Abuja, October 13-17, 2008.

This paper traced the historical perspective of global action against money laundering, discussed what is money laundering and stages of money laundering.  It further discussed what is forensic accounting and who is a forensic accountant, who is an expert witness as well as the role of a forensic accountant as an expert witness.  Finally it examined how the ‘Nigerian Factor’ affects the role of a forensic accountant as an expert witness.

The Historical Perspective of Global Action against Money Laundering

When it became obvious that money laundering was having a negative effect on the economies of the world, the Group of Seven industrialized nations met in 1989 in Paris and formed the Financial Action Task Force (FATF).

FATF is an inter-governmental body whose purpose is the development and promotion of national and international policies to combat money laundering and terrorist financing. The FATF is therefore a 'policy-making body' created in 1989 that works to generate the necessary political will to bring about legislative and regulatory reforms in these areas. The FATF has published 40 recommendations and 9 Special Recommendations in order to meet this objective. For details about FATF please see www.fatf-gafi.org. In 1990 FATF established and issued its 40 recommendations. The recommendations were again revised in 1996 and 2003. The 9 Special Recommendations dealt mostly on measures to counter terrorism.

All the recommendations and Special Recommendations are geared towards combating money laundering and terrorist financing. However, I presented four recommendations that are particularly pertinent to my presentation. The four recommendations are Recommendation 1, Recommendation 26, Recommendation 36 and Recommendation 37.

Recommendation 1 states that “Countries should criminalize money laundering on the basis of United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances, 1988 (the Vienna Convention and United Nations Convention against Transnational Organized Crime, 2000 the Palermo Convention).

Countries should apply the crime of money laundering to all serious offences, with a view to including the widest range of predicate offences. Predicate offences may be described by reference to all offences, or to a threshold linked either to a category of serious offences or to the penalty of imprisonment applicable to the predicate offence (threshold approach), or to a list of predicate offences, or a combination of these approaches.

Where countries apply a threshold approach, predicate offences should at a minimum comprise all offences that fall within the category of serious offences under their national law or should include offences which are punishable by a maximum penalty of more than one-year imprisonment.  For those countries that have a minimum threshold for offences in their legal system, predicate offences should comprise all offences, which are punished by a minimum penalty of more than six months imprisonment.

Whichever approach is adopted, each country should at a minimum include a range of offences within each of the designated categories of offences.

Predicate offences for money laundering should extend to conduct that occurred in another country, which constitutes an offence in that country, and which would have constituted a predicate offence had it occurred domestically. Countries may provide that the only prerequisite is that the conduct would have constituted a predicate offence had it occurred domestically.

Countries may provide that the offence of money laundering does not apply to persons who committed the predicate offence, where this is required by fundamental principles of their domestic law.”

Recommendation 26 states that “Countries should establish a financial intelligent unit (FIU) that serves as a national centre for the receiving (and, as permitted, requesting), analysis and dissemination of suspicious transaction report (STR) and other information regarding potential money laundering or terrorist financing. The FIU should have access, directly or indirectly, on a timely basis to the financial, administrative and law enforcement information that it requires to properly undertake its functions, including the analysis of STR.”

 Recommendations 36 and 37 - Mutual Legal Assistance Treaty among countries.

Recommendation 36 states that “Countries should rapidly, constructively and effectively provide the widest possible range of mutual legal assistance in relation to money laundering and terrorist financing investigations, prosecutions, and related proceedings. In particular, countries should:

a) Not prohibit or place unreasonable or unduly restrictive conditions on the provision of mutual legal assistance.

b) Ensure that they have clear and efficient processes for the execution of mutual legal assistance requests.

c) Not refuse to execute a request for mutual legal assistance on the sole ground that the offence is also considered to involve fiscal matters.

d) Not refuse to execute a request for mutual legal assistance on the grounds that laws require financial institutions to maintain secrecy or confidentiality.

Countries should ensure that the powers of their competent authorities required under Recommendation 28 are also available for use in response to requests for mutual legal assistance, and if consistent with their domestic framework, in response to direct requests from foreign judicial or law enforcement authorities to domestic counterparts.

To avoid conflicts of jurisdiction, consideration should be given to devising and applying mechanisms for determining the best venue for prosecution of defendants in the interests of justice in cases that are subject to prosecution in more than one country.”

Recommendation 37 states that “Countries should, to the greatest extent possible, render mutual legal assistance notwithstanding the absence of dual criminality.

Where dual criminality is required for mutual legal assistance or extradition, that requirement should be deemed to be satisfied regardless of whether both countries place the offence within the same category of offence or denominate the offence by the same terminology, provided that both countries criminalize the conduct underlying the offence.”

Recommendation 26 and the evolution of the Economic and Financial Crimes Commission (EFCC)

The EFCC was established in response to recommendation 26. Failure to establish recommendation 26 would have been costly to Nigeria. The economic cost for Nigeria for non-compliance with the FATF mandate would have been astronomical. Even after Nigeria established the EFCC, she remained on the list of non cooperative countries and territories (NCCT) until 2006. For a while the NCCT list had only Nigeria and Myanmar (formerly Burma) until both were removed in 2006. While Nigeria was removed from the list on June 23, 2006, Myanmar was removed on October 13, 2006.

While it is called EFCC in Nigeria, it is called Financial Crimes Enforcement Network (FinCEN in USA), Financial Transactions Reports Analysis Centre of Canada (FINTRAC), Australian Transaction Reports and Analysis Centre. Many other countries have different names for it.

Even before EFCC was established, the Independent Corrupt Practices And Other Related Offences Commission (ICPC) Establishment Act of 2000 was in existence.

Money Laundering

Money laundering is defined as the process of concealing the existence, illegal source, or application of income derived from criminal or illegitimate activity, and the subsequent disguising of the source of that income to make it appear legitimate (Association of Certified Anti-Money Laundering Specialists - ACAMS). Laundered money is like water, it seeks the path of least resistance (ACAMS).  Initially, money laundering was associated with drug trafficking and organized crime, however, it has been expanded to include extortion, terrorism, official bribery and corruption, arms smuggling, white collar crime and many other crimes.

The Three Stages of Money Laundering

Placement

Placement involves physically placing illegally obtained money into the financial system or the retail economy. "Dirty" money is most vulnerable to detection and seizure during placement. (U.S. Financial Crimes Enforcement Network)

Layering

Layering is the separation of illegally obtained money from its source through a series of financial transactions that makes it difficult to trace the origin.

During the layering phase of money laundering, criminals often take advantage of legitimate financial mechanisms in attempts to hide the source of their funds.

A few of the many mechanisms that may be misused during layering are currency exchanges, wire transmitting services, prepaid cards that offer global access to cash via automated teller machines and goods at point of sale, casino services and domestic shell corporations lacking real assets and business activity that are set up to hold and move illicit funds. (U.S. Financial Crimes Enforcement Network)

Integration

Integration means converting the illicit funds into a seemingly legitimate form. Integration may include the purchase of businesses, automobiles, real estate and other assets. (U.S. Financial Crimes Enforcement Network)

Forensic Accounting

Forensic accounting is the specialty practice area of accountancy that describes engagements that result from actual or anticipated disputes or litigation.

"Forensic" means "suitable for use in a court of law", and it is to that standard and potential outcome that forensic accountants generally have to work.

Forensic accountants, also referred to as forensic auditors or investigative auditors, often have to give expert evidence at the eventual trial.

All of the larger accounting firms, as well as many medium-sized and boutique firms have specialist forensic accounting departments. Within these groups, there may be further sub-specializations: some forensic accountants may, for example, just specialize in insurance claims, personal injury claims, fraud, construction, or royalty audits. (Source Wikipedia).

Recently Forensic accountants have started to develop expertise in tracking laundered money. Nigerian Forensic accountants should lead the rest of the world in developing expertise in tracking laundered money. This has urgency written all over it since Nigeria’s economic growth has been hampered by corruption which is a form of money laundering.

Who are Forensic Accountants?

Forensic accountants may be involved in recovering proceeds of crime and in relation to confiscation proceedings concerning actual or assumed proceeds of crime or money laundering. Some forensic accountants are also Certified Fraud Examiners, Certified Public Accountants, Certified Anti Money Laundering Specialists, or Chartered Accountants.

Forensic accountants utilize an understanding of business information and financial reporting systems, accounting and auditing standards and procedures, evidence gathering and investigative techniques, and litigation processes and procedures to perform their work.

Are There Differences Among Forensic Accountants?

The major difference lies in the focus. While some may focus on fraud, others may focus on money laundering. No matter the differences, adequate training and hands on experience will determine the level of expertise.

Forensic accountants are also increasingly playing more proactive risk reduction roles by designing and performing extended procedures as part of the statutory audit, acting as advisers to audit committees, fraud deterrence engagements, and assisting in investment analyst research. (Source Wikipedia)

Who is an Expert Witness?

An expert witness is a witness, who by virtue of education, training, skill, or experience, is believed to have knowledge in a particular subject beyond that of the average person, sufficient that others may officially (and legally) rely upon the witness's specialized (scientific, technical or other) opinion about an evidence or factissue within the scope of their expertise, referred to as the expert opinion, as an assistance to the fact-finder. Expert witnesses may also deliver expert evidenceabout facts from the domain of their expertise. At times, their testimony may be rebutted with a learned treatise, sometimes to the detriment of their reputations.

What is the role of an Accountant as an Expert Witness?

The principal role of a Forensic Accountant is to Analyze, Interpret, Summarize and Present Complex Business and Financial deals in a logical, understandable manner supported with facts.

As an Expert Witness, the Forensic Accountant must (a) Investigate and Analyze Financial information. (b) Develop Computerized applications (if applicable) to Assist in the Analysis and Presentation of Financial information. In addition, an Expert Witness must:

• Communicate Findings in the form of a Report and supporting documents.

• Assist in any Legal Proceedings.

• Assist in obtaining documentation necessary to support or refute a claim.

• Review of the relevant documentation to form an initial assessment of the case and identify areas of loss.

• Assist with Examination for Discovery including the formulation of questions to be asked regarding the financial evidence.

• Attend the Examination for Discovery to review the testimony, assist with understanding the financial issues and to formulate additional questions to be asked.

• Review of the opposing expert's damages report and reporting on both the strengths and weaknesses of the positions taken.

• Assist with settlement discussions and negotiations.

• Attend trial to hear the testimony of the opposing expert and to provide assistance with cross-examination.

Source: Alan Zysman B.Comm, CA·IFA, CFE has been in practice since 1984.  His firm Zysman Forensic Accounting Inc. located in Toronto, Ontario, Canada specializes in the provision of Investigative and Forensic Accounting services.

In addition, the following steps must be taken:

• Meet with key individuals

• Discuss expectations

• Discuss fees and reimbursable costs

• Gather Evidence after meeting with key individuals

• Research

• Discuss with key individuals on information that was obtained after research

• Make any necessary adjustment to the facts, if any, after discussion with key individuals

• Write a formal report supported by evidence

The Nigerian Factor that will affect the Role of an Accountant as an Expert Witness

Environment

Nigeria has a very weak infrastructural base. The road network is poor, the electricity situation is still backwards, the telecommunication system telephone is not secure as a result of reliance on wireless telephones, and the internet is still at a the developmental stage. This weak infrastructural base makes the work of the forensic accountant difficult.

Weak judicial system

Even though the judiciary has improved somewhat recently much more needs to be done. The inability of the court to adjudicate cases timely has led to mistrust and lack of confidence in the court system. In a weak judicial system, property rights and the rights of individuals as well as information may not be vigorously protected.  This gives room for manipulation and unreliability of information.

Weak educational system

There was a time when a Nigerian high school (secondary school) graduate will stand toe to toe with any student from anywhere in the world. Those days are gone. Our tertiary institutions have not fared better. After all the tertiary institutions mirror the secondary schools because the products of those secondary schools end up in the tertiary institutions. Prospective students purchase admissions into the tertiary institutions and once in those institutions students are compromised by forcing them to pay for their papers to be graded. This is not to paint all the institutions with the same brush but this is happening enough to warrant action by authorities. These students are the future workers and if they are not property educated, the information produced by such people as workers may not be reliable.

Indiscipline

Indiscipline retards development. In an environment where rules and regulations are not generally obeyed, the system becomes compromised and weak. When the system is compromised and weak, the evidence may not be completely reliable. This may affect the work of the forensic accountant. Indiscipline creates chaotic social or work environment. Experts needs structured environment to work. Indiscipline work environment creates mistrust and retards development and spiritual growth.

Corrupting Tendencies

In an environment where people are ever willing to compromise their values it is difficult to rely on documents or evidential matter coming from that environment.

Abuse of office and abuse of power

It is very difficult for an expert to work in an environment where those who swore to uphold the law, are the law breakers themselves. In an environment where those in power determine who says what or who gets what, it will be difficult for an expert to make an informed decision based on the fact that whatever decision the expert makes may be tainted because of the fear of those in power.

Rule of Law

The law is no respecter of any person. However, when the law is meant to favor those who have money or those in authority, it becomes difficult to rely on the legal system for justice or relief for the populace which will include the experts most of whom may not be rich or powerful. In addition, if the law is selectively applied or there is insincerity in its application, it makes it difficult for the expert to rely on the legal system. If the law is applied based on religious, ethnic, political, social, or gender sentiment, it also makes it difficult for the expert to rely on the legal system either for relief or expert opinion. In most cases the legal system has been used to delay justice. There is a saying that justice delayed is justice denied. This may make the work of the expert very difficult.

Lack of continuity

In Nigeria, there is no continuity of programs, policies, or procedures. There is a tendency for every new leader to reinvent the wheel. This situation may affect the work of an expert because a situation that was relied upon to make an informed decision during a previous administration may no longer be relied upon because of program, policy, or procedure change.  

Too much centralization of authority

There is a saying that absolute power corrupts absolutely. There is no place where this statement has affected the economy than in Nigeria. Experts who want to get information may have to travel long distances in order to get the information. In many instances when the expert gets to the location, he or she may even be required to wait for hours if not days before getting the information. The cost to the economy for such concentration of authority is unquantifiable. There is no reason why Nigeria cannot decentralize its economic and political decision making centers. This does not only make the economy efficient, it increases productivity.

“Too many Chiefs and not enough Indians”

Humility is a virtue but in Nigeria humility is regarded as a sign of weakness. This phenomenon has resulted in the citizens of the country being title crazy. People are not only title crazy but they want to be regarded and addressed as such. An expert who does not buy into this mentality may have his or her work thrown out or sabotaged.   

Fiscal indiscipline

A budget is a financial road map that guides the preparer to a desired financial goal. However, in Nigeria a budget is a financial road map to individual wealth. The lack of fiscal discipline has brought with it untold hardship on the people. It is difficult to see how an expert especially a forensic account can reconstruct accounts knowing that most of those figures may be made up.   

Lack of transparency

Transparency goes hand in hand with openness and with openness comes accountability. A system that allows an individual to be given enormous amount of money as ‘Security Vote’ and where the receiver is not required to account for the money compromises probity and accountability. An expert especially a forensic accountant may find out that in a system where there is little or no transparency, information especially financial information coming from such system may be suspect.

Institutionalized corruption and institutionalized money laundering

It is very difficult to rely on any information that is produced in a corrupt environment. When people’s values can be easily compromised, reliability of information coming from such environment is questionable. This makes the work of the expert difficult because reliability of information is a key to the success of the expert and his or her ability to render an expert opinion.

In conclusion, the role of a forensic accountant as an expert witness in a money laundering and corrupt environment is a daunting task that will require enhanced due diligence and enhanced investigative skills. With such skills, the forensic accountant will produce enough information to support a client even in a money laundering and corrupt environment.

Economic development is the means through which a society improves its standard of living. According to Joe Summers of Auburn University, it has been defined as “The process by which a community creates, retains, and reinvests wealth and improves the quality of life”. Economic development should be holistic in nature if the desired outcome is to be realized. A community is not developing when the people of that community cannot have access to the following: adequate health facilities, safe and easy access to drinking water, good educational system to produce the brain power needed to create and sustain the development, good transportation network to move people and goods freely, good communication system for efficiency, secured lives and properties (nothing can work against economic development more than insecurity of lives and properties), regulatory and law enforcement environment, impartial judicial system and government that is willing to partner with the people.

The theme of this paper is the role of Ndiigbo in Diaspora in the development of Alaigbo. Alaigbo is blessed with enormous human and material capital. According to Wikipedia, "Human Capital is defined as the stock of competencies, knowledge, social and personality attributes, including creativity, embodied in the ability to perform labor so as to produce economic value." On my way back from Vietnam in one of my international trips I read an article that has kept me thinking about why Africa has not lived up to her potential. That article said that from this 21st century going forward human capital will play more important role compared to material capital in the economic development of a community. When you sit back and think about this concept you will agree that it is already happening. Apple, Google, MTN, etc are all products of human capital before material capital was brought in to complement and actualize the idea.

I have always argued that the major part of Nigeria’s problem is the reliance on material capital as the sole basis for economic development. This has led to politicians assuming god complex. In Nigeria government determines through its action or inaction who benefits financially and economically. I am not going to go into the systemic inadequacies inherent in government being predominantly the sole determinant of who gets what in Nigeria. That is a topic for another day. In this paper I am going to discuss the role of Diaspora Ndiigbo in the development of Alaigbo.

With the above brief introduction, I will now go into today’s discussion “The Role of Ndiigbo in the Diasporas in the Development of Alaigbo.”

This topic will be discussed under the following categories: Human Capital, Technology, Material Capital, Money Remittance/Foreign Direct Investment and Reverse Brain Drain or Human Capital Flight. I shall also discuss some of the mitigating factors towards full realization of this topic under the following categories: Security, Political Will and Infrastructure.

Human Capital

As stated previously, Wikipedia defined Human Capital as the process by which a community creates, retains, and reinvests wealth and improves the quality of life. Fortunately, Ndiigbo in Nigeria are blessed with the highest number of children of school age going to school. The latest result of the 2013 May/June West African Examination released by the Council disclosed that the five Southeast states populated by Ndiigbo were in the best ten performing states in Nigeria. Anambra and Abia States were the first and second performing states respectively.

 Furthermore, information from JAMB also noted that Ndiigbo have continued to lead the rest of the country. The same way Ndiigbo State leads at home in the number of people trying to get into the tertiary institutions is arguably the same way Ndiigbo State leads in the number of Nigeria Diasporas who have finished or in tertiary institution abroad. They have seasoned professionals in virtually every professional group here in the U.S.

I stated previously that the United Nations is projecting that Human Capital will surpass Material Capital as the dominant force in economic development and the above statistics shows that if harnessed properly Ndiigbo State will dominate economic development also. For this projection to be realistic, the issues discussed under the lack of Political will must be avoided or drastically reduced.

A 2011 study from the Federal Reserve Bank of New York examined how the production of university degrees and R&D activities of educational institutions are related to the human capital of metropolitan areas in which they're located. One of Ndiigbo’s goals is to develop a database of Ndiigbo professionals in the U.S. When this is done, it will help the Southeast governments to tap into the database to access the skills needed to develop Alaigbo. My discussion with some of these professionals disclosed that they are not necessarily interested in going home to work for the respective governments or anybody but will be willing to donate their time for specific projects as long as the projects do not interfere with what they do here. The governments of Southeast must seek out these professionals and engage them with minimal or no cost for the progress of Alaigbo.

Technology

The Business Dictionary defines Technology as the purposeful application of information in the design, production, and utilization of goods and services, and in the organization of human activities. In this paper I am limiting my discussion of technology on its business application which is closely related to economic application. The scientific application which incidentally affects economic development is not discussed

Asian countries that achieved tremendous economic growth did so mostly using the Human Capital and most of them leveraged the technological expertise of their Diasporas to augment domestic Human capital. The Southeast governments can borrow a leaf on that synergy to fast track their development. Even though I discussed this topic previously I brought it up here again in this section for emphasis. The saying that there is no need to reinvent the wheel is appropriately applicable to how the Southeast governments can leverage the expertise of her Diasporas to develop Alaigbo. For example, in information technology, Ndiigbo State has many experts here in the Unites States of America and other advanced economies that given the necessary incentives (not necessarily financial) can help develop modern information technology in Ndiigbo State. We also have many people in health technology, education technology and in so many other areas that the governments can leverage their expertise to better the plight of her citizens. Our people at home should not always think that the lighter skin people are smarter because some of our people here are bosses to those lighter skin people based on their knowledge, experience and expertise.

It is very sad that when we visit home we find it difficult to access the internet and even when one has access to internet the speed is so slow that it drives one insane. I am confident that there are many of our people in the Diaspora that could be tapped to bridge this information technology gap. What makes this difficult to achieve are some of the issues such as Political Will that I discussed elsewhere in this paper. It is sad that our students in the primary, secondary and tertiary institutions have limited or no access to internet. Even primary school children here in the U.S. can access information in the internet to aid their learning process. The saying that information is power is becoming more evident in the present information technology age. Take for example the GPS technology that makes it possible for people to go to places that they have not been before just by knowing and inputting the destination address. One western writer said that Africa missed out in the technological breakthrough that ushered in unprecedented prosperity not only in the western hemisphere but also in Asia and parts of South America. He further said that Africa is about to be left way behind because they lag woefully behind in Information technology. My mention of Africa is not accidental but deliberate. Deliberate because I know that Ndiigbo can lead Africa just like the Silicon Valley led the rest of the U.S. in innovative technological breakthroughs. Ndiigbo have the human capital needed for such leap.

Technology allows for faster processing of data and easier retrieval of information. When people perform tasks manually, it can be time consuming and full of human errors. When technology is used for operations, mistakes and errors are greatly reduced or eliminated, and the time it takes to complete the task is reduced thereby increasing efficiency. In addition to quicker or instant access, technology also makes it easy to update information. Instead of manually searching for information which may sometimes take hours or days to accomplish, a few clicks of the mouse can instantly pull up information from a database. There are many other advantages to the use of technology such as using cell phones to transact business which reduces unnecessary driving which in turn reduces road accidents. In addition, not many people are exposed to insecurity associated with being in Nigerian roads such as armed robbery, carjacking or kidnapping.

While we still lack the political will to do the right thing, the Organization of Economic Co-operation and Development (OECD) in 2010 encouraged the governments of advanced economies to embrace policies to increase innovation and knowledge in products and services as an economical path to continued prosperity. The directive noted that their continued prosperity hinges on continued technological advancement. It should be noted that brain drain or human capital flight, which is the loss of talented or trained persons from a country that invested in them, to another country which benefits from their arrival without investing in them, arises as a result of underutilization of both human and material capital. Asian and to some extent South American countries are now experiencing reverse brain drain or reverse human capital flight as a result of increased efficient use of human capital. Ndiigbo can leap frog other sections of Africa in effective use of her human capital by developing her technological base.

Material Capital

Alaigbo is blessed with abundant natural resources such as crude oil, lead, zinc, white clay, fine sand, limestone and natural gas in commercial quantities. Alaigbo is also blessed with abundant arable land. In many parts of Alaigbo, with little effort yam, cocoyam, banana, plantain, cassava, maize, okra, melon, various types of vegetables are produced. It is instructive that we gave Indonesia and Malaysia palm kernel to grow palm trees and now we import vegetable oil from them. To our people especially those at home when development is discussed, a lot of undue emphasis is placed on material capital. (Please note that I use material capital while many use material resources).

Money Remittance/Foreign Direct Investment

The recent data from the World Bank and other relevant sources placed Nigeria among the top recipients of remittance from her citizens residing in the developed world.

The top recipients of worldwide remittances in 2012 are India ($70 billion), China ($66 billion), the Philippines ($24 billion), Mexico ($24 billion), Nigeria ($21 billion), Egypt ($18 billion), Pakistan ($14 billions) Bangladesh ($14 billions), Vietnam ($9 billions) and Lebanon ($7 billions).

In 2011, with $11 billion, Nigeria is ranked 8th among the top recipients. Please see the graphs below. The $21 billion in 2012 and $11 billion dollars 2011 were the official record and this did not take into account unofficial sources such as people carrying money with them when they visit Nigeria and hawala type of money remittance. Hawala type of money remittance is when a person (here in the USA or other country) who wants to send money to his/her relative in Nigeria arranges with a third person here in the USA or other country. The third person here arranges with somebody in Nigeria to give the naira equivalent while at the same time the person over here receives the dollars from the person sending the money. It is an honor system and no records are kept of such transactions. I explained the hawala type of money remittance to show that when the two forms of informal money remittance are included Nigeria's remittance would be double the official figures.

2012 Worldwide Remittance - Billions of US Dollars

I said earlier that Ndiigbo arguably has the highest number of her citizens abroad and if that scenario holds, then Ndiigbo receives between 55% and 65% of money remittance into Nigeria. This translates to $11.55 billion to $13.65 billion using the official figure for 2012 and between $6.05 billion to $7.15 billion for 2011. If the unofficial figure is factored in then we are looking at more money that flows into Alaigbo from her Diasporas. The governments of the Southeast may not realize it but her Diasporas are playing a very important role in keeping Alaigbo economically stable.

The Nigerian government in general and the Southeast governments in particular tend to play down the role the Diasporas are playing in the development of the country in general and Alaigbo in particular. Take for instance the money that an individual sends home to build a house, that money will be retrieved by either the relatives of the person, contractor or any other relevant party. The money will be used to buy rod, cement, sand, gravel and other materials needed to build the house. The business that sold the rod, cement, sand, gravel or the other materials will replenish its inventory, the people that are engaged in the building of the house will be paid and so on. In certain instances some shrewd petty traders will sell pure water, akara, moi moi or mama put to the workers. The multiplier or expansionary effect of that money in the economy is enormous. Please note that this money was sent into Alaigbo from outside the country which qualifies it as a foreign direct investment. Remittances from Nigerians abroad have been the cushion that have helped Nigeria avoid the nasty effect of the massive corruption that is endemic and systemic in the country. I told a friend that for every dollar mismanaged through corruption Nigerian Diasporas kick in anywhere between 60 cents and 80 cents to replace that money misappropriated or misapplied through corruption. Without money coming from Diaspora the Nigerians economy would have collapsed as a result of the massive corruption in the system.

Ndiigbo Diasporas must not be seen by the political class at home as desperate to be part of the system that has wrought untold hardship on the masses. Ndiigbo Diasporas must have the moral courage to tell the government the truth about the effect of corruption, misplaced priorities and outright abuse of power. We cannot condemn a system and then wait patiently to be part of the system that we condemn. This is one of the important areas that Ndiigbo Diasporas can help to develop Alaigbo. However, there is a difference between constructive criticism and criticism borne out hate, political mischief or ignorance.

Having enumerated areas Ndiigbo Diasporans can help to develop Alaigbo, I will remiss if I fail to highlight some of the difficulties that the Diasporans face in actualizing this task. I chose three areas to discuss the difficulties that Ndiigbo Diasporans face and they are Security Situation, Infrastructural Development and Political Will.

Security Situation

Apart from the lack of human and material capital, nothing works against development like insecurity of lives and property. Investors like to operate in an environment where they know that they can move freely to engage in business transactions. As a result of the globalization of the world economy coupled with instant access to information, investors are now able to analyze the risk/return tradeoff in a time manner. I have noticed that some of our people who want to invest outside Alaigbo always use lack of security as a cover. While I think that the security situation is about the same all over Nigeria, Ndiigbo being mercantile people should know of all people that a fairly secure environment is necessary for Ndiigbo to maximize their business acumen. Fortunately, the security situation in Alaigbo has improved remarkably.

The fear of insecurity can sometimes be worse than insecurity itself. To compound this issue is the culture which our people operate in. Many times people are afraid to volunteer information that may aid law enforcement because they are afraid, sometimes correctly so, that the law enforcement official(s) will compromise their safety. Some of the bad apples in law enforcement actually engage in activities that are inimical to the security of individuals that they are sworn to protect. Again this is not unique to Alaigbo but is part of the nationwide systemic corruption that has created insecurity in the first place. Insecurity is also caused by the army of unemployed young men and women who have done all that the society requires them to do but unable to be gainfully employed. Even with their education (some with graduate and post graduate degrees) they are unable to find work and are unable to raise the necessary capital to start their own businesses. Such brilliant minds may be deployed towards negative activities confirming the saying that an idle mind is the devil’s workshop.

Insecurity or perceived insecurity is costing Ndiigbo a lot. For example, if 100 Diasporas want to visit home monthly, some of those who want to visit home may be discouraged because of insecurity. The Southeast economy will lose the potential revenue that the discouraged individuals would have brought with them had they visited. The expansionary or multiplier effect from the lost revenue is the price Ndiigbo are paying for insecurity or perceived insecurity. This same scenario is repeated when Ndiigbo who live in Nigeria but outside Alaigbo feel reluctant to visit Alaigbo. Advanced countries spend tremendous amount of money luring tourists because they know the positive economic impact tourists have in an economy.

Infrastructure

Until recently the governments of the Southeast have only paid lip service to the development of infrastructure. The governments of the Southeast have taken appreciable steps towards road development in Aaligbo. Investors look at the level of infrastructural development in an area to determine if it is cost effective to locate their businesses in that area. A country like Ghana is getting undue attention because of the level of her infrastructural development. A steady supply of electricity and water is a panacea for economic development. The cost of energy can put a country or region at economic disadvantage. Nigeria as a country with her population and purchasing power has not lived up to her economic potential as a result of the high cost of doing business due to her underdeveloped transportation network, epileptic power and water supply. Alaigbo is part of Nigeria and it will be unfair to blame the Southeast governments for the lack of energy but the governments can develop good transportation network and water system. Again without sounding like broken record, there should be a strong partnership between the Diasporas and the government and stakeholders in Alaigbo in this area.

Political Will

Everything that has been ailing Nigeria and by extension Alaigbo can be attributed to lack of political will. I talked with one of the EFCC officials about what they should do to bring about sanity in the system and his response was “there is no political will to do it”.  This brings me to the dilemma that Nigeria is facing. Before I go into this crucial area, I must say that every country has issues but the difference is how those issues are handled. Take the issue of corruption for example China executes public officials who are found corrupt while most European and American countries sentence corrupt officials to long prison sentence. Contrast that with the Nigerian attitude towards corruption and you will see why Nigeria is in such predicament. My presentation is not about what is ailing Nigeria but what we can do to help develop Alaigbo because the governments of the Southeast are under the federal government and that makes it difficult except in the areas where they have total authority and control.

I am going to discuss this critical section under the following subheadings: Attitude towards power, Attitude towards governance and Attitude towards corruption.

Attitude Towards Power

I will preface this part of my presentation with two of the many life changing events that I experienced and will like to share them. The first one was in the nineties when I was coming back from Washington DC to California after attending training at the FDIC Seidman Training Center in Virginia. I sat on Row 22 and before I settled down the then Chief of Staff for President Clinton Leon Panetta came into the plane behind me on Row 23. He opened the overhead compartment and put his carryon luggage. Both of us were sitting on the aisle seats in our respective Rows and I turned back and asked Mr. Panetta if he was Leon Panetta the Chief of Staff. He smiled and said that he was. When we got to San Francisco, he got into his vehicle that his wife was driving and they drove away. The next true story was in 1986 when I started working for the State of California, Department of Savings and Loan as an Examiner. I was shocked when the Assistant Commissioner the number three person in the State of California came over to me on my first day on the job and told me to go to lunch break with him and the other big wigs. I was not the only Examiner invited nevertheless I was surprised coming from Nigeria and knowing how power is handled in Nigeria. Those two examples showed me what the true power is. The true powerful person is a person who speaks softly but carries a big stick.

In addition to the two examples above, I was impressed when I watched the President of Sierra Leone on the African channel. He said that he drives himself around Freetown without entourage. A friend also told me that when he visited Ghana, his Ghanaian counterpart took him to visit the President and the ease with which they saw the President was a shocker for him coming from Nigeria where at his level he was not able to easily see his own President.

Treat them rough and make them like it mentality of a typical Nigerian politician, portends danger to the polity as the population continues to be highly educated. In Alaigbo with the highest educated people in the country, leaders who have learned to exercise power judiciously will continue to win elections when election becomes truly free. A politician who wields power judiciously will most of the time win the hearts of the electorate. Judicious exercise of power includes fiscal prudence, entourage that does not disrupt the normal lives of the people, disciplined lifestyle and leading by example.

Attitude Towards Governance

Some of the most important aspects of good governance are the provision of infrastructure, securing lives and properties, fostering and adhering to the rule of law, generally providing for the welfare of the governed. A good leader exhibits various forms of charisma, humility, civility, shrewdness, caring attitude, respect for the governed and law, and the fear of God. In a place like Nigeria where sycophancy reigns supreme, a good leader must be careful listening to sycophants because they are not real. In Nigeria it is very difficult to see an elected official unless you are somehow connected to that official. That should not be so. Granted that in a place like Nigeria almost everybody who wants access to an elected official is going to beg for one help or the other, there must be ways to go through the list of people who want to see the elected official and prioritize the list. An example may be for the elected officials to have visiting hours. The elected officials must have access to the list of people who want to see them and decide on who to see based on the reason for the visit. It should not be left entirely for the assistants as that may be an avenue for those assistants to extract money from the visitors.

Some of the Diasporans who have been exposed to how things are done especially those from advanced democracies are not helping matters. Who will blame the elected officials who observe individuals who should have known better trying to outdo each other to be seen when they visit. Some disciplined Nigerian officials feel embarrassed while those who get intoxicated with power enjoy every minute of the charade.

Since this paper is about how the Diasporas can help develop Ndiigbo State, I will state unequivocally that discipline is a key ingredient of development be it mental, social, spiritual and development of the community. The Diasporans must know that our actions or sometimes inactions may be contributing to the problems that we criticize.

Attitude Towards Corruption

A Nigerian and a Japanese became very close friends while going to school as engineers in the U.S. After their university education they both went home. After few years the Nigerian engineer visited his Japanese friend. While in Japan he saw that his Japanese friend had a small car and a small house. He queried his Japanese friend what he had been doing since he returned to Japan. His Japanese friend responded that he has been busy building the infrastructure such as good road, uninterrupted power supply, nonstop running water, efficient railway system and all other infrastructure that he no time to even enjoy his small house and car. Few years later his Japanese friend visited his Nigerian friend. He saw many expensive cars, big mansion and all other trappings of wealth but there was no power, no nonstop running water, no efficient railway system and basically no developed infrastructure. He asked his Nigerian friend what he has been doing since he returned to Nigeria. The Nigerian answered and said that he had been too busy enjoying his wealth and did not have time to build any infrastructure. This story unfortunately was from an African friend who told me that this joke was passed around at the U.N.

A man dies & goes to hell. There he finds that there is a different hell for each country and decides he'll pick the least painful to spend his eternity. He went to Germany hell & asks, "What do they do here?" He is told "first they put you in an electric chair for an hour. Then they lay you on a bed of nails for another hour. Then the German devil comes in and whips you for the rest of the day". The man does not like the sound of that at all so he moves on. He checks out the USA hell as well as the Russian hell and many more. He discovered that they are all similar to the German hell. Then he comes to the Nigerian hell and finds that there is a long line of people waiting to get in... Amazed, he asks, "What do they do here?" He is told "first they put you in an electric chair for an hour, then they lay you on a bed of nails for another hour. The Nigerian devil comes in & whips you for the rest of the day." But that is exactly the same as all the other hells, why are there so many people waiting to get in?" asks the man. "Because there is never any electricity so the electric chair does not work. The nails were paid for but never supplied, so the bed is comfortable to sleep on. And the Nigerian devil used to be a civil servant, so he comes in, signs his time sheet and goes back home for private business." (FOR ONCE, IT PAYS TO BE A NIGERIAN) 

The above two stories among many have shown how other people view us. The celebration of wealth no matter how the wealth is acquired has put Nigeria in a bad light before the rest of the world. Ndiigbo Diasporans can help Alaigbo by insisting through their contacts with Ndiigbo political class (for those who have that access) that corruption is the reason why Nigeria is still struggling economically. Ndiigbo Diasporans must not be waiting to join the band wagon but must engage the governments constructively and must be ready to confront them if their constructive engagement is rebuffed. If we can help effect a positive change, it does not only help Alaigbo but also our pocket book. Some of us spend sometimes up to 50% of our hard earned income to shore our people at home.

Conclusion

The world is a global village. When something happens in any remote area of this world it is instantly known worldwide. For the business community, intelligent community and opinion makers, information to make decision is now a click away. Alaigbo must be seen as business friendly. By being business friendly the governments of the Southeast must reduce any bottleneck in setting up a new business or expanding an existing business. Political opponents must understand that unnecessarily hyping a minor incident for political gain may hurt everybody including those opponents. Responsible opposition will help Alaigbo develop but irresponsible opposition will hurt Alaigbo. Ndiigbo Diasporans must engage in responsible opposition if they feel that the actions of the Southeast governments are inimical to the development of Alaigbo.

Finally, Alaigbo will not develop if they look up to the federal government as a role model because of the level of corruption and attitude towards corruption at the federal level. The governments of the Southeast must constantly dialogue with Ndiigbo Diasporans because if such dialogue if constructively done it will help to develop Alaigbo just like Asians and Latin American countries are doing. I am confident that given the level of education in Alaigbo and the number of her successful business and professional Diasporans, Alaigbo will be the winner if both sides can work together.

Since the Biafra-Nigeria war ended Alaigbo has been under tremendous manipulation by forces who fear that a resurgence Alaigbo is a threat to the unity of Nigeria. This more than any other machination has contributed to the economic malaise of Nigeria. Furthermore, the behind the curtain agreement by the winners made it difficult for Alaigbo to experience the type of federal presence both in terms of federal industrial allocation and infrastructural development that are prevalent in other regions. This un-gentleman agreement led to the seizure of Innoson Motors 25 containers despite the fact that the company was approved for importation of completely knocked down (CKD) parts, seizing and selling off of a large number of Igbo containers. I can write volumes on economic sabotage purposely perpetrated against Ndiigbo with the intention of impoverishing Ndiigbo and Alaigbo, however, the purpose of my article is to say that despite all planned efforts to under-develop Alaigbo, Alaigbo is finally gradually coming back at least economically.

In writing this article I reviewed information coming out of Nigeria regarding such issues as incidence of poverty, per capita income, educational attainment, maternal death, early childhood education and many other issues. I visited Alaigbo to ascertain the level of economic activities. I can say that based on my analysis of the information coming out of Nigeria and my personal experiences, Alaigbo is gradually grinding her way back. I used the word grinding her way back because if real and perceived insecurity of life in Alaigbo is discounted then Alaigbo would have been fully back.  Investment which is a catalyst for economic development and economic well being does not do well in an insecure environment. Business men and women operate more effectively in a free environment. Freedom of movement is very important to business men and women. The desired level of economic activities will not be attained if people are afraid to move around freely to transact businesses.

I have read many times where some Ndiigbo said that they invested outside Alaigbo because of insecurity of lives in Alaigbo. To those people I say, tell us another story. Take for example Lagos, the city is a mega city and with that comes anonymity. It is easier to be spotted in a small city such as Nnewi or Owerri than Lagos. The cover of anonymity gives an individual the freedom to move freely than where one is known. In addition to anonymity, the law of averages works in favor of somebody in Lagos because of the population. Finally, open society that is prevalent in Alaigbo makes it easy for people to report crime than in closed societies. My friends from the other parts of Nigeria will always tell me that crime is more rampant in their areas, the difference is that they do not want to go to the press with the information. Contrast that attitude with that of a typical onye Igbo and you will know why perception can be reality sometimes. We have more Ndiigbo born outside Alaigbo than is the case with other Nigerians and that plays a strong role in the decision by such individuals to locate their industries outside Alaigbo. These individuals have soft spots for the areas outside Alaigbo where they were born and that makes the decision to invest in those areas less troubling.

I was very encouraged with what I observed and witnessed this time around in Alaigbo when I visited. I will start with Imo State. You will know the way people feel about any government by the level of excitement from the people. In Imo State the ‘feel good attitude’ is infectious. It reminded me about the first few months of Obama presidency when people thought that the new world order has finally come to be. Governor Okorocha has his work cut out for him because he can continue to feed into this frenzy but embarking on people oriented programs. When people feel good about themselves and their environment then they spend more money which in turn will spur more economic activities. So far Governor Okorocha has a lot of political capital to burn before he finds himself in a bind. In Anambra State, the level of economic activities has always been very high. Many people from Anambra State are seasoned business savvy people. The only disappointment I had about Anambra was the level of political discontent. I found myself defending Governor Obi to the chagrin of my hosts. Even some people in APGA are not happy with him. I have always liked Governor Obi and once I like somebody it takes a huge scandal to change me. I will still remind Governor Obi that his $50,000 pledge to Imo Farm Village in Virginia is still outstanding. In Enugu State, the Igbo Capital, Governor Chime has done a good job in the provision of infrastructure especially very good road network. The other day I Googled Enugu and took a virtual drive around Enugu and it was impressive. Like every politician Governor Chime has his share of detractors. That is natural in the political world. In Abia State and Ebonyi State, the story is different. That Abia State is not leading the other Igbo states in development is troubling. That Ebonyi state is not feeding the whole of West Africa is equally troubling. Hopefully, when SENEC comes into full existence some of these anomalies can be remedied.

Why Invest in Alaigbo

There are many reasons why investment in Alaigbo is not only a profitable venture but also a strategic move. The high concentration of educated and highly skilled people, highest per capita income (encourages consumption), high population density, highly mobile people, entrepreneurial people, fairly developed road network and technologically savvy people.

My Visit to Innoson Motors in Nnewi

My good friend Innocent Chukwuma arguable a foremost industrialist in Africa drove in from Enugu and met me at his factory in Nnewi. I was given a tour of the factory and that factory alone has positioned Alaigbo for the future. I have already posted the video clips of my visit previously.

Discussion with Engr. Chris Okoye, Chairman SENEC

I called Engr. Okoye to ascertain the status of SENEC. He said that the legal representatives from the south east states except Imo State met and drew the legal framework for the final take off of SENEC. For those who do not know what is SENEC, it stands for South East Nigeria Economic Commission. Please visit the web site at http://www.senec.org.ng/senec/. During the discussion Engr. Okoye said that 100 Igbo Men came to Alaigbo with Rapid Response System equipment and installed and are training umu Igbo to man the system. When I said that Alaigbo is gradually being emancipated economically it is because many more Ndiigbo are now thinking Alaigbo first.

Enugu International Airport

About a month ago there was very heated discussion about Enugu International airport. This came about because during one of our IWA meetings I as the DSG of Economic Institute of IWA complained that not much is being done about making Enugu International Airport a reality. A decision was taken by the governing council to invite the president of Ohanaeze and the PRO to discuss the issue among other issues. Coincidentally, after that heated decision we heard that the Airport will be closed for upgrade. The Airport was closed about the 15th of April for upgrade. Hopefully when it reopens by the end of the year it will open as a fully functional international airport.

Finally, in view of the perilous political, economic and security situation in the country it will be wise for Ndiigbo to continue to shore up Alaigbo economically, politically and to be able to secure Alaigbo in case the country decides to break up. We must not be caught unprepared.

Amadiebube Robert Mbama

DSG Economic Institute, Igbo world Assembly

DSG Economic Council, Conference of Igbo States in America

Chairman, Institute of Chartered Accountants of Nigeria, USA District Society

Over the weekend we watched one Nollywood movie called Oyoyo Nwa. In this movie the husband was a Chelsea soccer fan, the wife was a Manchester United soccer fan and the son was a Barcelona soccer fan. The family was in perpetual war. One can remove soccer and substitute it with ethnicity or religion or politics and there lies one of Nigeria’s perennial problems.

In the early seventies Nigerian soccer fans were loyal fans of either the Enugu Rangers, IICC Shooting Stars of Ibadan, Stationery Stores of Lagos, Mighty Jets of Jos, Vasco Da Gama of Enugu, Port Harcourt Red Devils and other Nigerian clubs that I may have forgotten. For us on the Biafran side that lost the war, we took our revenge when Enugu Rangers defeated any of the other Nigerian club sides. It was like the war was being fought all over and we won. Every weekend, we were glued to our radios as TV was a reserve of the well to do because we were recovering from the war. Most of us never heard about Chelsea, or Manchester United, or Liverpool, or Barcelona, or any of the European clubs except when people who played or appropriately gambled with what they called pool at that time, mentioned those names. I remembered my deep resentment of the Atuegbu brothers those days because they were playing for the Mighty jets. Who knew then that many years later Andy and Fide Atuegbu will be close friends of mine here in the US.

Nigeria missed a great opportunity to channel those loyalties into patriotism partly because of leadership failures chief among them are corruption and excessive greed. Before I left for the US I believed that Nigerian Airways was the largest airline in the world. Not necessarily because it was so but because I believed that everything Nigerian was the best. When I left home in the late seventies I still asked about the Nigerian soccer clubs especially my favorite club Enugu Rangers. Contrast what we did in the seventies with what is happening now. I heard and read that our young men and women sometimes engage in fight to death simply because their European clubs lost. Neo-colonialism is real and alive in Nigeria. What a shame that a country that should lead the rest of Africa in Afro-centrism is the one that has embarked on all types of neo-colonialism.

This little piece is not about corruption, ethnicity, religious differences, and assault weapon carrying herdsmen but even when we effectively deal with those, how our love for everything foreign may even pose more serious dilemma for the country. There is a popular saying that life imitates art. Even before the US developed laser weapons there were star wars that used laser weapons on TV. Let us learn from this movie Oyoyo Nwa. It depicts one of the many things that we need to change. Yes we are in a global village but that does not mean that we should throw away our uniqueness and embrace others without reservation. 

Submitted by mbamabob on Wed, 08/31/2016 - 22:26

The Economic and Financial Crimes Commission (EFCC) was established in response to Recommendation 26 of the Financial Action Task Force (FATF). Recommendation 26 states that Countries should establish a Financial Intelligent Unit (FIU) that serves as a national centre for the receiving (and, as permitted, requesting), analysis and dissemination of suspicious transaction report (STR) and other information regarding potential money laundering or terrorist financing. The FIU should have access, directly or indirectly, on a timely basis to the financial, administrative and law enforcement information that it requires to properly undertake its functions, including the analysis of STR.

While we can give credit to the Obasanjo's administration for setting up the EFCC we must also understand that for Nigeria to be part of the international community, the EFCC (or whatever name it would have been called had it been established by another administration) must be established. Otherwise the cost to Nigeria for non-compliance with the FATF mandate would have been astronomical. Even after Nigeria established the EFCC, she remained on the list of non cooperative countries and territories (NCCT) until 2006. For a while the NCCT list (or as we call it in the money laundering field the bad boy list) had only Nigeria and Myanmar (formerly Burma) on the list until both were removed in 2006. While Nigeria was removed from the list on June 23, 2006, Myanmar was removed on October 13, 2006.

With that brief introduction as to why the EFCC was established, I will then go into why the EFCC must not fail Nigeria.

As a specialist in the anti-money laundering and anti-terrorist financing fields, I will state unequivocally that EFCC is the last hope for the hopelessly and helplessly deprived Nigerians. That Nigerian resources have been squandered by politicians and their collaborators is an understatement. What surprises me is how daring and brazen these politicians are when they squander the peoples money. Equally surprising is the fact that the people allow this to happen. Look around in any local government and you will see a local government councilor who became a councilor as a poor person and overnight became rich. People should be querying sudden wealth from politicians but instead they worship those politicians. In Nigeria today, money is everything. It does not matter how that money is made, just make it. This latest craze for money has brought with it a serious moral dilemma even for churches. In South and Central America, the churches were and are still the advocates for social justice and equity. In Nigeria, some of the churches themselves have been compromised with money from corrupt politicians and this is why EFCC must not fail Nigeria.

Chairman Ribadu and his EFCC colleagues have done a good job in trying to put the fear of God in politicians. They should be commended for going after corrupt politicians but the latest issue concerning a list of people who should or should not run for political office has done more damage to the fairness or lack of by EFCC officials. The timing was wrong and the whole exercise is regrettable. The EFCC should not have let itself to be used or teleguided by any group no matter who that group is. If we believe that democracy is the government of the people by the people for the people, we should let the people decide. The EFCC should publish the list of those it finds corrupt and let the people make the decision using their votes.

Because Nigerians should not allow the EFCC to fail, the steps that are being contemplated by the senate are both timely and welcomed. The argument by the executive branch of government that the EFCC is another department of the executive is correct but because of the 'Nigerian Factor' the EFCC must be made semi or complete independent of the executive branch. Failing to do that will bring disrepute and will make EFCC a tool of the executive.

Amadiebube Robert Mbama the author is the president of MBAMA & Associates LLC. He is a certified anti money laundering specialist. For more about the author please go to www.mbamaassociates.com.

Submitted by mbamabob on Mon, 03/23/2015 - 14:58

Corruption is defined as “the lack of integrity or honesty (especially susceptibility to bribery); use of a position of trust for dishonest gain. (Word.net). It is the unscrupulous use of one’s position to derive profit or advantages.”  In Nigerian context, I will further define corruption as an abuse of privilege conferred on an individual by a family, community or a larger society. The larger society may be town, local government, state or the country as a whole. No country on earth is corruption free. However, through vigorous application of laws and regulations it could be minimized or reduced to a manageable level.

A lot of very good articles have been written on the relationship between high level of corruption and underdevelopment. It is an understatement to say that the level of African development is attributable to the level of corruption found in the continent. Yet in Africa, some countries are doing a good job in trying to reduce the level of corruption in those countries. With this brief introduction, I will go into the main caption of my article which is ‘Corruption – the Monster that has handcuffed Nigeria.’ In my article I will discuss the various forms of corruption, how each has contributed to the destruction of the Nigerian society and I will suggest ways to minimize or reduce corruption to free Nigeria from its debilitating effect. The various forms of corruption that I will discuss include the following: political corruption, educational corruption, religious corruption, and economic/financial corruption.

POLITICAL CORRUPTION

Political corruption is when an elected officer who lacks integrity or honesty uses his or her office or position for personal or ethnic gain.  In Nigeria, the various forms of political corruption that is being perpetrated include bribery, subversion of the people’s mandate through election rigging, too much concentration of power, nepotism, cronyism, and mediocrity. If political corruption can be minimized or reduced in Nigeria, all the other forms of corruption can be controlled. In Nigeria, the political class controls virtually every aspect of decision making including the economy. The concentration of the economic decision making in the hands of the political class has brought with it an unprecedented level of corruption that is arguably one of the worst if not the worst in the world.

Bribery

In Nigeria, the Naira must exchange hands before anything can get done. Because this is so institutionalized, doing business with the public sector is a daunting process unless one is ready to succumb and comply. In the section dealing on how to drastically reduce corruption in Nigeria, I will make suggestions but I will support my argument that the public sector of Nigeria is very corrupt with two simple but true examples. One of the examples is from Mr. X and the other is from Mr. Y. Mr. Y retired on June 30, 2006 at the age of 55 in the U.S. and prior to his retirement, he completed his paperwork which included direct deposit of his monthly retirement income to the appropriate authority. He mailed his completed application form and never came across people who were responsible for processing the application forms. At the end of July 2006, on the very day that his retirement income was supposed to be in his bank account, the money was there. For almost three years now the monthly retirement income has not failed to be in his account. Contrast this to Mr. X who retired at the end of 2008 at the age of 60 in Nigeria. Up till June 2009, his file is still crawling from one table to another. It took over three months after he retired before the retirement forms were made available to him to complete. He did not even receive his last month income (December 2008) and despite the fact that he has not received any money from the government since six months, he is expected to grease the palms of the people who are paid to process the retirement applications. I used these two simple but true examples to highlight the difficulties Nigerians face daily as a result of institutionalized corruption. Immediately after Nigeria gained her independence, people were afraid of taking bribe from people they did not know for fear of being arrested for bribery. In those days people were afraid of ‘marked money’ which the CIDs used to trace and arrest individuals who took bribe from the public as an inducement to do the work they were paid to do. These days, the people who are paid to enforce the law against bribery are themselves the chief law breakers.

Subversion of the People’s Mandate through Election Rigging

In any democratic set up, the power to let people know that they are performing, not performing or underperforming is through the ballot box. If elected office holders are answerable to the electorate, the fear of not being re-elected due to nonperformance or underperformance would make those elected official perform to earn the trust and respect of the electorate. If the people’s will is subverted, the main tenet of democracy is destroyed and when this happens, the elected officials will no longer be accountable to the electorate. Either through god- father connection or strong-arm by the political party in power, the electorate is sidelined and the attendant crushing corrupting environment is what is being experienced today in Nigeria.

Too Much Concentration of Power

The saying “power corrupts, absolute power corrupts absolutely” is being experienced in Nigeria. There is no place where this statement has affected the people’s way of life and the economy than in Nigeria. At the federal level, the presidency wields enormous power. The other two branches of government that are supposed to counter-balance the power of the presidency are mere observers. At the state level, the governor wields enormous power and just like its federal counterpart, the other two branches of government that are supposed to counter-balance the governor’s power are mere observers. The presidency controls who gets what and how much without much input from the legislative arm. The same scenario happens at the state level.

Nepotism

In Nigeria, in virtually most of the cases, one has to know somebody in authority to influence employment decision before one gets employed especially in lucrative jobs. This type of action breeds incompetence and hostile work environment. Most of these individuals come into the work environment with chips on their shoulders and find it difficult to play by the rules.

Cronyism

Cronyism is the appointment of a friend or a relative to a position of trust regardless of whether or not the person is qualified. It has been alleged that some openings are left unfilled until the friends or relatives of the friends of those responsible for the hiring are available. Some vacancies are left open for friends who are still in college. If Nigeria is to advance economically, this type of practice must be abolished and vacant positions must be open to competition and the best candidate hired for the job. This practice together with nepotism is partially responsible for the brain drain that is happening in Nigeria. Nigeria cannot afford to lose her highly educated and well trained workforce to outsiders. Even when these individuals are educated and trained abroad, it will be in Nigeria’s interest to do whatever in her power to lure these individuals back to help develop the economy.

Mediocrity

Nepotism and cronyism breed mediocrity. Nigerian leaders must open their eyes and see the harm that nepotism, cronyism and mediocrity are doing to the economy. Productivity is sacrificed in the altar of inefficiency. If Nigerian leaders want Nigerians to be patriotic, the way they do things must change otherwise no amount of slogan or re-branding will make people patriotic. A nation is like a family. If your children watch you as parents waste the resources that are meant for their upbringing and you turn around to preach to them the virtue of being resourceful, your children will look at you and wonder if you are insane. Nigerian leaders must stop encouraging mediocrity by employing the best for the good of the economy. After all, if the economy grows, more people will benefit.

EDUCATIONAL CORRUPTION

In the 1960s and 1970s graduates from Nigerian High Schools (Secondary Schools) were regarded very highly all over the world. Many universities abroad were eager to welcome Nigerian high school graduates because of the reputation and the quality they brought to those institutions. Many parents, who did not have money to send their children to school borrowed, sold land and other properties to send their children to school. Education was pursued by many as a stepping stone to wealth and social status. Parents were ready to sacrifice to see their children move up to the elite status as a result of acquiring good education. Today, the reverse is the case. Many foreign universities are leery of accepting Nigerian high school graduates because the experience has soured. Parents are leery of sending their children to higher institutions because when they finish school, there will be no job for them. What is it that brought Nigerian’s educational sector to this pathetic stage?  The reasons are not far fetched.  They include the following: Lack of adequate funding, corrupt ministry of education officials, payment for admission, attitude of the teachers, attitude of the students, parents’ nonchalant attitude, and sex for grade.

Lack of adequate funding

There is a saying ‘whatever is worth doing at all is worth doing very well.’ When corruption became institutionalized in Nigeria, the funding of education suffered. The political class decided that the money meant for education would be put to a better use if it is converted to personal or party use. The political class did not see education as a necessary tool in the development of the economy. Education became a privilege and no more a right for the citizens. The money to pay teachers became easy money for the political class. School buildings were left to decay and libraries and laboratories became nonexistent. Even school fees paid by students were embezzled by the political class or civil servants. This led to strikes or threat of strikes. Unfortunately for Nigeria, the world is a small village and the news of what is happening in the educational sector is known worldwide and that has affected the reputation of Nigerian schools especially the tertiary institutions.

Corrupt ministry of education officials

In addition to the political class underfunding education, the corrupt ministry of education officials makes educating the citizens difficult. The political class, because of the level of their corruption does not have the moral courage to police what is going on at the local government level.  The ghost worker situation is so pervasive and government auditors are willing to look the other way for pittance. Some headmasters are told to prepare the payroll in pencil and when the final payroll comes from the ministry in ink with different number of staff and different amount no body questions the discrepancy. Does anybody care? Who gets the money paid to non-existing staff?

Payment for admission

The amount of money that a prospective student is required to pay for admission to a university depends on the type of course the student will pursue. Students who want to become medical doctors are charged more than students who want to study any of the liberal arts. What does this say about the educational system? This means that in some cases the best and brightest students would not be given admission because they cannot afford to come up with the enormous amount required from them. Everybody loses, the student would not get admission because he/she does not have the money to pay and the economy loses because it is denied the services of its best. I am at a loss as to why this has been going on for some time without the government intervening.

Attitude of the teachers

I was shocked about the stories some students in the tertiary institutions told me. Even though the story that I heard may not be happening in all the tertiary institutions in the country, when it happens in one school, it is one school too many. The students told me that after they write their papers, they are expected to ‘Sort’ it. When I inquired what they mean by ‘Sort’, they told me that the student must give the teacher money for the teacher to grade the paper otherwise, the student will fail. I asked them what happens if the student is very smart and the answer was that it does not matter. One student said the more money you pay, the better your grade. My own relatives confirmed the story.

Some teachers insist that unless the student buys his/her teaching materials, the student will not pass the class. This type of arrogance has led to the demise of quality education in most of the tertiary institutions.

Attitude of the Students

Some of the students contribute to the degradation of the educational system. Since some students know that all it takes to pass a class is money, they will rather pay the money than attend classes and acquire sound education. The student is the greatest loser while the country also loses in terms of reputation and loss productivity. Some of these students end up in foreign countries and when they are employed based on their academic qualification they cannot produce at the desired level. This tarnishes the reputation of the country’s educational system.

Parents’ nonchalant attitude

Cultism and college prostitution may be reduced to a barest minimum if parents question their children on their abhorrent behavior or question them on how they come up with money to pay for their lavish lifestyle. Poverty and the level of corruption in the society have eroded the moral stand of many parents to question their children when they exhibit certain immoral behavior.

Sex for Grade

Sex for grade has been an issue that has bedeviled the educational system. While this may not be peculiar to Nigeria, the Nigerian situation is troubling because of the brazen nature with which the teachers approach this phenomenon. This sex for grade is directed mostly to the lady students. While most ladies find this repugnant, some actually enjoy it because of the power it gives them and the fact that they do not have to study to pass the class. The government cannot wish this away or pretend that it is not happening. It is happening and must be stopped. The moral implication for the country is enormous. Unless this is stopped, it will be self perpetuating and will have disastrous consequences for the education system, the economy and the family.

RELIGIOUS CORRUPTION

In South and Central America, the churches were and are still the advocates for social justice and equity. In Nigeria, some of the churches themselves have been compromised with money from corrupt politicians and even blood money. Why is this happening? Some of the churches or religious leaders are the products of the defective educational system that I have discussed in this article. When I go to church here in the U.S., I spend no more than one and a half hours but when I come back to Nigeria, the church goes for at least 4 hours. Every 30 minutes or so, there will be one form of fund raising or the other. Some of the old women who bear the brunt of the fund raising can hardly feed themselves and yet they overextend themselves because they have been meant to believe that their salvation depends on how much money they contribute. It is amazing that the almighty naira has found its power even in the church.  The psychological game being played on these wretched women is very unfortunate and when the country decides to change the level of corruption in the country the churches should not be spared.

ECONOMIC/FINANCIAL CORRUPTION

I will discuss the economic/financial corruption from the public and private sector perspective.

Public Sector Perspective

Unless Nigeria comes to grip with corruption, short term, medium term or long term economic planning will amount to nothing. As a result of the uncontrolled corruption in the country, money earmarked for projects are embezzled or misapplied. This process repeats itself project after project. That is the reason why energy a key component of economic development has been in disarray. The money and attention put in energy development would have yielded the desired result but for corruption in the public sector. No country can honestly aspire to develop without adequate supply of electricity. Electricity powers the manufacturing, telecommunication, educational and even the service sector. Nigerian manufacturers will continue to be placed in a competitive disadvantage unless the energy sector is developed.

Although, I am yet to fully understand how Nigeria plans for its economic development, however, this much I understand. Planning is mostly based on what makes sense ethnically instead of what makes sense economically.  In any well planned economy, diversification is emphasized. In Nigeria the opposite is the case. The congestion at the Lagos/Apapa Sea Port is as a result of poor planning. There is no reason why Calabar, Port Harcourt and Warri Sea Ports could not have been developed to international standard and ships diverted to those ports to ease congestion at the Lagos/Apapa Sea Port. Furthermore the much talked about dredging of the River Niger to make Onitsha and Lokoja inland sea ports have long been overdue. The economic multiplier effect to the entire economy could only be imagined.

Expanding the number of international airports in the country has also economic ramifications. In the San Francisco Bay Area where I live, there are three international airports all within few miles from each other. There is one in San Francisco, one in Oakland and one in San Jose. Nigeria must learn to let economic benefits to the country drive economic planning. There is no reason why a big country like Nigeria cannot have at least one fully functional international airport in each of the six zones. Nigeria needs a diversified economy not only to move away from one commodity economy but to increase revenue generation from other sources. In risk assessment, a company with one source of revenue or supplier is considered high risk because of what will happen to that company if either the supply source or revenue base is affected. If any natural disaster hits Lagos, Nigeria will suffer irreparable damage to the economy because of the concentration of industries in that one location. Diversifying the economic and industrial base in Nigeria does not only make economic sense, it is also a national security issue.

Private Sector Perspective

Like the public sector, the private sector has its own share of blame. For corruption to take place there must be willing participants. The political class would not have perfected this monster if the private sector is not giving them a helping hand. Who moves the huge amount of money that these people steal from the public from one location to another? The financial institutions have been willfully blind when it comes to the amount of money that flows into and out of their institutions. Part of this willful blindness could be traced to nepotism, cronyism and similar vices but greed among the financial institution employees is also a factor. The laundering of money through the financial institutions must be checked if Nigeria intends to wage honest war against corruption.

My Recommendations to Drastically Reduce Corruption

Nigeria knows exactly what to do to drastically reduce corruption but the political will is lacking. The political will is lacking because those who benefit from corruption are the ones who are looked upon to eradicate it. I have the privilege of talking with some members of the society who should do something about corruption. I have even met some of them here in the U.S. when they attended the Anti Money Laundering Conference in Las Vegas.

Short term Solutions:

Restructure the law enforcement and regulatory agencies that are charged with enforcing the laws against corruption in Nigeria. There are too many overlap, for example, the ICPC and EFCC have almost identical assignments. Some times these agencies are more interested in fighting the turf war than fighting to eradicate corruption. Secondly, it appears that the EFCC has its tentacle in every mundane financial crime in the country. When non financial institutions are quarreling the EFCC should not get involved. This type of issue should be handled by the police. The EFCC should concentrate its efforts on those in the political class that are stealing Nigeria dry and those in the financial institutions who are collaborating with them. The EFCC should redouble its effort to sanitize the financial institution in order to prevent them from being used both by the political class and others to launder money. The civil monetary penalty against UBA by U.S. regulators which has happened two years in a row is a slap on the Nigerian regulatory agencies. It shows that the Nigerian regulators are not doing their work otherwise UBA would not have exported its sloppy anti money laundering regime to the U.S.

The Chairman of EFCC should be appointed based on knowledge of what it takes to fight corruption and not restricted to individuals with law enforcement background. This will increase the pull of knowledgeable people that could be appointed to head the agency.

The CBN and other regulatory agencies must revamp, retrain and reorient its examination staff. Based on the level of corruption in the country, the examination staff should be at least doubled if not quadrupled to enable it perform optimally. The salary of the examination staff should be enough to discourage them from engaging in activities unbecoming of the level of professionalism expected of them. All the financial institutions in the country must be examined by these well trained and highly motivated examination staff no later than 2010. Thereafter, depending on the rating assigned to each financial institution, the frequency of future examination could be determined.

Nigeria should establish an agency that will be shrouded in secrecy with the responsibility of conducting undercover review and sting operations of both the examination staff and the financial institutions’ management staff who may want to compromise the examiners. This same agency will also have the same responsibilities over public officials. Nigeria is not the only corrupt country in the world, the difference is that while Nigeria celebrates public officials who loot public fund, many other countries jail or execute such people. After I retired and became a consultant for financial institutions I was surprised when some management staff of some of the institutions told me that it is good to have me on their side. They confessed that they are afraid of the unknown whenever examiners come to examine them. Nigerian regulators should evoke such fear on the regulated instead of being cozy with them.

Nigeria should use the undercover agency to flush out educators that either ask for money before grading students’ papers, demanding sexual favors from students before grading their papers, or demanding money from prospective students before offering them admission.

There are too many ghost workers in the system. Each ministry in order to entrench transparency must establish a crack team of auditors that will conduct surprise audit of the agency that they are charged to oversee. These auditors should also be monitored by the undercover agency.

Long term solutions

The primary school and high school curriculum should be updated to include discussion on the evil effect of corruption on the country. Nigerian children should learn from the early stages that corruption is bad.

The law enforcement and regulatory agencies should start to match the lifestyle of the political class and the top management of the private sector with how much they are paid. If there is a discrepancy between the two, the undercover agency should be alerted to conduct undercover operation. If the individual is engaging in activities unbecoming of his/her office, the individual should be arrested and the arrest widely publicized to serve as a deterrent.

Conclusion

This article is not intended to provide solutions to all of the problems ailing Nigeria. However, my intent is to highlight some of the negative effects that the cancer of corruption has wrought on Nigeria and to offer a few suggestions on how to combat it. There are many other negative effects that can be traced to corruption such as loss of respect among nations and lack of patriotism by the masses among many. God has endowed Nigeria with both human and material resources and until Nigeria arrests the runaway corruption in the system, Nigeria will continue to be mired in perpetual underdevelopment.  Corruption is Nigeria’s greatest threat to national security and the political class who are eager to accuse everybody else but themselves about the threat to national security would be wise to honestly and truly fight corruption in order to better the lots of the people.

About the author.

Amadiebube Robert Mbama is the founder and owner of MBAMA & Associates LLC, a USA based Anti-Money Laundering, Bank Secrecy Act, Office of Foreign Asset Control and other regulatory consulting company. He is a certified public accountant, an associate chartered accountant (ICAN), a certified financial forensic and certified anti money laundering specialist. For more information please visit www.mbamaassociates.com.

Submitted by mbamabob on Mon, 03/23/2015 - 14:59

Investopedia described Arbitrage as basically buying in one market and simultaneously selling in another, profiting from a temporary difference. This is considered riskless profit for the investor/trader. It describes Currency arbitrage as the exploitation of the differences in quotes rather than movements in the exchange rates of the currencies in the currency pair. Forex traders typically practice two-currency arbitrage, in which the differences between the spreads of two currencies are exploited.

As the global economy reels from the impact of the decline of oil revenue and its domino effect, many countries are increasingly turning to their Diasporas remittance to help to cushion the negative effect. Many countries have developed or are developing strategies to tap into the Diaspora remittance. Please see the table below. Please note that countries like India, China, Philippines, Egypt, Pakistan, Bangladesh and Vietnam which have encouraged remittance from their Diaspora have benefited from increased inflows.

Top Remittance Benefiting Countries in billions of dollars 2009 - 2015

Country

2009

2010

2011

2012

2013

2014

2015

India

49.20

53.48

62.50

68.82

69.97

70.97

72.20

China

41.60

52.46

61.58

57.99

59.49

61.49

63.90

Philippines

19.96

21.56

23.05

24.61

26.70

27.90

29.70

France

16.06

19.46

22.56

22.05

23.34

23.94

24.60

Mexico

22.08

22.08

23.59

23.37

23.02

24.50

25.70

Nigeria

18.37

19.82

20.62

20.63

20.89

20.88

20.89

Egypt

7.15

12.45

14.32

19.24

17.83

19.83

20.40

Germany

12.34

12.79

14.52

15.14

15.20

16.60

17.50

Pakistan

8.72

9.69

12.26

14.01

14.63

17.80

20.10

Bangladesh

10.74

11.28

12.96

14.24

13.86

15.10

15.80

Belgium

10.44

10.29

10.98

10.16

11.11

11.11

11.10

Vietnam

6.02

8.26

8.60

10.00

11.00

11.80

12.30

Of all the top remittance benefiting countries, the Philippines Government has been encouraging her Diasporas the most. I have done consulting work for BDO (largest bank in the Philippines) US affiliates, PNB, RCBC, Metro Bank, then PCI and money transmitters that are not bank affiliates and I can say unequivocally that the 50% increase in remittance over a six year period is connected with the Government of the Philippines effort to attract remittance revenue from her Diasporas. The banks in the Philippines with the government encouragement are competing with each other to attract remittance funds. The exchange rate given to the remitters are virtually same in the US and in the Philippines and I have no reason to believe that the rate is not the same from the other countries from where they send money home. In one of the banks affiliates, I noted that Filipinos who want to buy or build homes are wooed with all kinds of incentives. The Philippines government recently called their Diasporas their 'New Heroes'.

Nigerian Government Attitude Towards Remittance

I used the Philippines Government attitude towards remittance to highlight the willful blindness of the Nigerian Government towards remittance. The above graphs shows how relatively flat remittance from Nigerian Diasporas have been over the six year period. This is not unconnected with the lukewarm attitude or downright disdain manner towards the efforts of the Diasporas. To begin with, it is unconscionable that the Nigerian Government has allowed the ongoing daylight highway robbery of the hard earned money of her Diasporas by various money transmitters and banks. Here in the US, Western Union and MoneyGram charge about $10 to send up to $900. The exchange rate is about N197 to $1. The same $1 in Nigeria will fetch at least $260. For a Nigerian Diaspora who sends $900, he will lose N56,700. This amount may be enough to pay for school fees for a University student. By allowing this robbery to continue on her Diasporas the Government of Nigeria has shown callous disregard to their welfare. Most of the people sending money home are trying to help alleviate the hardship that their relatives and friends are facing due to the government policies. The government should be happy that the generosity of the Diasporas have helped and still helping to cushion the hardship Nigerians at home are facing.

The Nigerian Government is facing enormous cash squeeze and one would have thought that the government officials will look into ways to encourage the Diasporas to send more money home as part of easing the cash squeeze. The government must stop this daylight highway robbery of her Diasporas and by so doing may reap the benefit of increase in revenue from her Diasporas. The Nigerian Government must act fast before arbitrage is institutionalized which will make eradicating it difficult. Nigeria is finding it difficult to generate enough electricity due to the effects of the powerful generator importing club. The time to act is now.

Submitted by mbamabob on Wed, 08/31/2016 - 21:57

Igbo Economic Road Map

Economic Road Map is an economic plan of action that is designed to create a stable economic environment where the people will enjoy economic prosperity with limited economic hardship.

Ndiigbo are people known worldwide for their mercantile ability and as a result will benefit from an economic road map that is designed to harness their economic comparative competitive advantage.

Why the Southeast Needs Economic Road Map

The Southeast is one of the six zones in Nigeria. The Southeast is the zone with the least federal presence in terms of infrastructural development. In other words federal presence in the zone is almost nonexistent. For the Southeast to develop her industrial base, create jobs, retain her trained manpower and, reduce crime, there is a need for economic road map. In all honesty, the economic road map has already been prepared by Engineer Chris Okoye led Southeast Nigeria Economic Commission (SENEC). Please see SENEC summary below which forms the bulk of the presentation. Therefore this paper will emphasize the need for the Southeast to revisit the SENEC plan.

The Role of the Government

The government plays a crucial role in the provision of infrastructure that propels economic development. Nigerian economic development has been hamstringed by lack of constant supply of electricity. Closely related to the lack of constant supply of electricity is the lack of railway system. The railway hauls the bulky goods for both household and industrial use. The cost per mile using the railway system to transport goods is cheap compared to using road transportation network. In addition to a developed railway system, a developed waterway transportation network is equally important. In the case of the Southeast, it is efficient inland waterway transportation system that will haul or transship goods from ocean going vessels. I am aware that the federal government that has starved the Southeast zone of federal presence is the same government that has jurisdiction over the development of efficient road, railway and inland waterways transportation network. However, I believe that if the elected governors, senators and federal house members work for the common interest of the zone much could be accomplished.

The Role of the Private Sector

Just like the public sector, the private sector has a very crucial role to play in the economic development of the Southeast zone. Fortunately for the Southeast zone, the people are predisposed to business and are entrepreneurial. Again I emphasize that the essence of this paper is not to bore the readers with litany of what should be done because we have them already. I will encourage anybody who wants to read a well researched paper on the economic road map for the Southeast zone to read the summary below developed by the South East Economic Commission (SENEC).  

South East Nigeria Economic Commission

I reproduced in this section a condensed version of what SENEC forwarded to me by the interim Chairman Engineer Chris Okoye.

Background to SENEC’S Vision

The concept of South-East Nigeria Economic Commission emanated from a Stakeholders Forum on Industrial Clusters in South-Eastern Nigeria, organized by the African Institute for Applied Economics (AIAE), on 26th September 2006 in Enugu. The state of industrial clusters was situated against the economic and development performance of the South-east geopolitical zone, in relation to other zones of the country. The Forum observed that the poor state of industrial development in the south-East zone reflects the underlying lack of coordinated economic, institutional and infrastructural development. It recommended that though industrial clusters pose major policy challenges across the zone, they cannot be treated in isolation of the overall economic context of the south-east zone. The Policy Forum concluded that holistic and systematic approach is required to harness the full economic potentials of the south-east states, instead of piecemeal disparate measures by individual States. It was reasoned that there is compelling need to explore sustainable institutional mechanisms to generate and deliver common services in order to reap economies of scale for the accelerated development of the entire zone. Among the critical economic areas that are amenable to collective approach are the development of key and lumpy infrastructural projects, generation and diffusion of technologies, upgrading human capacity for industry development of large regional social projects, creation of strategic investments and institutional strengthening.

KICK-STARTING THE FACILITATION PROCESS

Based on the communiqué of the forum, AIAE set up a Steering Committee under my leadership to husband and facilitate the establishment of South East Nigeria Economic Commission.  The Steering Committee carried out an extensive research and study which culminated in the generation of a 100 page framework document for the establishment of the South East Nigeria Economic Commission.

The Proposed South-East Nigeria Economic Commission (SENEC)

Rationale

Currently, the South-East zone lacks a robust institutional framework to drive the development of shared infrastructure, common services and coordinated economic development. The Commission is modeled as a joint independent agency of the five co-operating South-East states, the private sector and the entire people of the zone.

Legal Status

It shall be established by laws enacted by individual legislatures of the South-East states and incorporated under the relevant provisions of the Companies and Allied Matters Act. It will be a public-private-community partnership organization, to which state governments, private sector and civil society have mutually reinforcing stakes. The Commission shall be a body corporate with perpetual succession and a common seal and may be sued in its corporate name.

Organizational Structure

The organizational structure comprises Board of Trustees, Economic Advisory Council, Board of Directors, Executive Directors and non-Executive Directors. The management shall be organized along departmental lines focusing on respective mandate functions. It will bear structures such as state liaison offices to meet operational imperatives. Funding will come from state governments, private sector and civil society, under financing arrangements agreed to by stakeholders.

Functions and responsibilities

The proposed SENEC will play vital roles in uniting the interests of the States of the zone and in encouraging cooperation and collaboration amongst the governments of the States. The vision of the South East Nigeria Economic Commission is to become a robust platform that drives sustainable economic growth and social development of the South East geo-political zone of Nigeria. The mission of the Commission shall be to provide potent vehicles for the articulation of development strategies, mobilization of resources and coordination of policies for greater economic prosperity within the South East geo-political zone of Nigeria. The cardinal goal of SENEC shall be the promotion of economic competitiveness and sustainable development of the south-east geopolitical zone within the national and global economies.

Expected Milestone Achievements

The milestone achievements of the Commission will be: creation of world-class investments in the South-East zone; development of large physical infrastructural schemes; implementation of programmes for sustainable institutions; creation of centres for human capacity development; and development of coordinated framework for the formulation and implementation of public policies and plans. Specifically, the Commission shall carry out the following objectives/tasks: determine shared zonal development policy goals and strategies; articulate and advance zonal interests within the national framework; facilitate inter-governmental cooperation, policy coordination/synergy and joint programming; advocate for, facilitate and implement strategic zonal investments; and coordinate infrastructural development within the zone.

Imperative of the South-East Nigeria Development Fund (SENDEF)

One of the main tools to catalyze the implementation of the SENEC initiative is the South-East Nigeria Development Fund (SENDEF). The SENDEF will mobilize and deploy investment and development funds from government, private sector stakeholders and other partners, based on pre-determined financing arrangements. Even though the SENDEF would eventually become an investment facility, it should be established as the critical first step towards realizing SENEC. When started, the Fund shall become the legitimate basis for mobilizing seed money for the full establishment of SENEC.

I have reviewed the background that led to the Senec initiative and the supporting props for its institutionalization in the South East region.

Perhaps, it might also be pertinent to carry out an overview of the South East economy over the periods up to 1967 and post – 1970 era so as to establish the compelling desirability for integration as a desideratum for the zone’s rapid economic/social growth and development.

SOUTH EAST NIGERIA ECONOMY – AN OVERVIEW

(i) The economy of South East Nigeria from 1958 to 1967. The Eastern Region of Nigeria started off as a separately governed territory of colonial Nigeria. It participated in negotiating for Nigeria’s independence as a distinct party and achieved self-government in 1958, two years before Nigeria. This region was originally totally rural and the population engaged in small scale farming (food crop, livestock and fishing). As early as the 16th century, trade in palm oil existed between the region and Western Europe. Under colonial rule, British trading firms established throughout the region, buying palm produce for export and selling imported manufactures. The oil palm was not cultivated but grew wild and economic production was mostly not for money.

The government of Eastern Nigeria had the challenge of modernization. The paradigm it followed was to provide infrastructure to enhance productivity and access to markets; educational development to improve human capital; and development, water and sanitation to improve the quality of life.  While the Regional government provided trunk roads and bridges that linked important centres, the local governments (Divisions) were responsible for rural roads and bridges that linked small settlements to the trunk roads. Similarly, the Regional government provided large hospitals called General Hospitals at provincial centres, while local governments provided dispensaries in every town.  In addition, the regional government partnered with voluntary agencies to set up large health centres called Joint Hospitals. Markets, Schools and Christian Mission centres were used to vaccinate (immunize) people against communicable diseases. The Regional and local governments set up a few standard primary, secondary grammar, vocational and technical and teacher training schools. Voluntary agencies willing to provide educational services were granted approval, under specified conditions, and given financial support (called matching grant) in order to limit their charges. They were also required to set up teacher training colleges to sustain and support their school work.

The private sector in this region had neither the capital nor the skill to engage in the production other than small scale farming. In order to increase and diversify economic activity, the Regional government invited foreign direct investment to establish in the region alone or in partnership with the government or domestic private sector. Government procurement was used to incentives such investors. E. M. Mitcheletti, Costain and RCC were assured of government construction contracts for buildings, roads and bridges. Local content in procurement was required to be promoted and local sub-contractors were also required to be developed, by the foreign contractors. These contractors were also required to train local skilled personnel in carpentry, masonry, painting, welding, and fitting and so on. The Regional government promoted the establishment of building product manufactures such as cement, roofing sheets, enamel ware and furniture. 

The history of Nigeria is evidence that this paradigm was successful. It produced good secondary schools such as DMGS and CKC Onitsha. The Nigerian Cement Company, Nkalagu; Asbestos Products Ltd and Niger Steel, Emene; and many other companies set in the old Eastern Region were the product of this endeavour.

ii)  The Economy of South East Nigeria: The post -1970 experience.

Nigeria generally and Igbo land had the opportunity after the civil war of creating a new self-sustaining economic base during the oil boom period following the OPEC revolution of 1974. What could have been attempted is well illustrated by the transfigurations which took place in the economies of the Middle East most notably in Qatar, Kuwait, and Saudi Arabia. In Nigeria the funds to re-build the foundations were there in abundance as the following figures of showing the rise in federal assets indicate.

The military administration of the period learnt very quickly how to squander money. This can be seen from the failure of the balance of payments and external reserves to keep pace with increasing oil receipts. But in fairness it must be recognized that government expanded communications, public transport, energy generation, steel production, and tertiary education especially by building universities of agriculture and technology. Naturally no investments of any kind whatsoever were made in Igbo land. Federal attitudes towards Igbo land were characterized by double speak and of farce. These attitudes, which continue even today, are illustrated by President Shehu Shagari’s opening of a sea port that did not exist in Onitsha in 1983 and by President Olusegun Obasanjo’s fake launching of the dualization of the Onitsha / Owerri road in 2003. The South East was supposed to remain a ghetto of underdevelopment and frustration.

But Ndigbo made money in the military era. Figures from the National Bureau of Statistics show very emphatically that Igbo land had the least poverty ratio in Nigeria with a low figure of 34.2% as against 43.0% in the South West, 51.1% in the South South, 63.3% in the Middle belt, 63.9% in the North West, and 67.9% in the North West. Thrust against their will into the underworld of the informal sector, Ndigbo took hold of that sector and re-created it by organizing the import of cheap consumables mostly from South East Asia: motor spare parts, electronics, general goods, pharmaceuticals, clothing materials, and food items. Otu Onitsha, Ariaria market in Balogun, Alaba, Idumota and Nkwo Nnewi gradually became the show rooms of the Igbo economy.

It is important to recognize that Igbo traders contributed immeasurably to the sustenance of Igbo land during the military era. Their prosperity trickled down. They created an apprenticeship system which broadened the scope of their business to an ever widening population and they developed networks of related enterprises which reaffirmed the communal tradition of Igbo land in a difficult setting.

If however, we use the structure developed by the Niger Company as a reference point, it should become clear that trading, no matter how rewarding it may be in the short term, is not the way forward for Igbo land.

In 1970 – 1983, Ndigbo took refuge in trading and we prospered on it. But for a dynamic self-sustaining centre of the Igbo economy in the 21st century, we should look elsewhere.

The South East Nigeria Economic Commission (SENEC) seeks reinvigoration of South East development. The former Eastern Nigerian Region is reputed to have the fastest growing economy in the world by 1966 when Nigeria’s first military coup took place. This feat owed to, among other factors, the establishment of West Africa’s foremost cement factory at Nkalagu, Nigeria’s first industrial estates at Emene,  Enugu,  and at Trans Amadi in Port Harcourt, the steel industry at Emene, the gas factory at Emene, glass factories in Port Harcourt and Aba, Standard Shoe Factory in Owerri, Aba Textile Mill, Golden Guinea Brewery in Umuahaia, etc. In addition, there were Nigerian Construction and Furniture and Company (NCFC), the Eastern Nigerian Development Corporation (ENDC), the Obudu Cattle Ranch, stunningly successful farm settlements. Onitsha had West Africa’s largest market. Hotel Presidential, whether in Enugu or Port Harcourt, was of international standard. Products of the University of Nigeria with campuses in Nsukka, Enugu and Calabar were competing favourably with their counterparts the world over.

The magic of it all is that all these institutions were propelled by the Eastern Nigerian Development Corporation – similar to what SENEC is attempting to do in South East region. The state-owned enterprises (SENEC) among them regularly posted huge profits and accordingly paid impressive dividends. Compare this development with the current situation where almost all government owned enterprises, including the Nigerian National Petroleum Corporation (NNPC), have failed woefully.

If not for the military intervention in politics and the consequent civil war of 1967-70, Eastern Nigeria would have long been in the league of Singapore, Malaysia, Brazil, South Korea, Taiwan, and Hong Kong. This would have been possible because Nigeria was then practicing proper federalism where each regional government was fully in charge of its destiny and even had foreign offices in such places as the United Kingdom. Let me quickly add here that the First Republic remains the golden era in Nigeria’s development, and this explains why the Igbo campaigned at the Constitutional Conference of 1994/5 for the division of the country into six geopolitical zones and for the zones to be the federating units. It is a tribute to the enduring vision of the Igbo that though the present Constitution does not provide for geopolitical zones, Nigeria is, in reality, today governed on the basis of the geopolitical zones to the extent that there is a minister in the Federal Government representing each of the zones.

Time for a New Renaissance

States have been created in Nigeria since 1967 ostensibly to bring development nearer to the people. But the truth is that the more states are created, the lesser the rate of development. This should not be surprising to discerning observers. States were created for the first time for purely political reasons, and not for economic or developmental reasons. When they were created in 1967, it was with the sole purpose of defeating Biafra because the authors wanted the ethnic minorities in the Eastern Region to become “independent of Igbo domination”. The reason for creating states subsequently has never gone beyond politics.

Conscious of the fact that the states as currently constituted cannot serve as authentic vehicles for development, SENEC has from inception sought the economic integration of the five states in the South East geopolitical zone. In any case, the South East was until 1975 just one state called East Central State. SENEC seeks to make the states have a common development plan. Borrowing a leaf from SENEC, the South Western states launched on March 6, 2012, the Development Agenda for Western Nigeria (DAWN) when they realized that the current states are too weak and small to bring about the quantum development their people require.   

The need for economic revival is perhaps more pronounced in the Southeast than anywhere else. Almost every historic industry and path-breaking institution in Eastern Nigeria which I mentioned earlier in this paper has long disappeared. The few remaining ones like the UNN can do much better. Even ones built later like Premier Breweries in Onitsha and the Avutu Poultry farm in Imo State have collapsed. A fresh graduate of, say, mechanical engineering from the University of Nigeria or any other university in the South East is likely to head the next day to Lagos or Abuja or Port Harcourt for employment because there are scarcely employment opportunities in our place.

The Role of the Chambers of Commerce of the States of the Southeast

The chambers of commerce of the Southeast states must work collaboratively to develop the zone as a unit. Their role is to harmonize the commercial and industrial activities of the zone by helping to establish industries to where the economy of scale will be effective. For example, the chambers of commerce should work collaboratively to make Ebonyi State the rice producing capital of West Africa. The various regions of the world are integrating to reduce waste and inefficiency thereby increasing economy of scale. This should be the role and ultimate goal of the chambers of commerce of the Southeast zone.

Diaspora Connection

In 2014, Nigeria received $21 billion from her citizens living abroad. Ndiigbo arguably has the highest number of her citizens abroad and if that scenario holds, then Ndiigbo should have received between 55% and 65% of money remittance into Nigeria. This translates to $11.55 billion to $13.65 billion using the official figure for 2014. Please note that in 2013 and 2012, Nigeria received the same amount from her citizens living abroad. If the unofficial figure (money that is carried by travelers that were not declared at the point of entry) is factored in then we are looking at more money that flows into Alaigbo from her Diasporas. The governments of the Southeast may not realize it but her Diasporas are playing a very important role in keeping Alaigbo economically stable.

More importantly for the Southeast the zone has the Diaspora brain power that can be harnessed to develop the zone. Unfortunately the political and business elites in the zone still regard their Diaspora counterparts as adversaries instead of collaborators. This scenario has led to mistrust that has not helped the zone reach its potential.

The political and business elites at home must develop a strategy whereby highly skilled Diaspora Ndiigbo are engaged not necessarily as employees but some as consultants to help fast track the development of the zone.

Conclusion

The aim of this paper is not to reinvent the wheel because it has already been invented but to point out that when Ndiigbo decide to develop Alaigbo, the human and material capital necessary to do that are already in place. The only thing holding Ndiigbo back is the political will or put more appropriately, a few good men and women that have the interest of Ndiigbo at heart. It is fine to be a proud nwa Igbo and still a Nigerian. They are not mutually exclusive.

About the Presenter

Amadiebube Robert Mbama is the DSG IWA Economic Institute. He is the president of MBAMA & Associates LLC a California based anti money laundering, anti terrorist financing, bank secrecy act and office of foreign asset control consulting company. Mr. Mbama has an MBA, ACA, CGMA, CFF, CPA, CAMS.

Amadiebube Robert Mbama was a former online faculty member of Accounting and Finance classes at the University of Phoenix. Currently he is inactive due to the opportunity of running MBAMA & Associates LLC. He was a Supervisor with the Department of Financial Institutions, State of California.  He has a BS in Accounting and MBA in Finance & Banking both from the University of San Francisco, California. He is an Associate Chartered Accountant of the Institute of Chartered Accountants of Nigeria, a Chartered Global Management Accountant, a Certified Financial Forensics, a Certified Public Accountant, and a Certified Anti-Money Laundering Specialist.

He helped to develop training and also train money transmitter regulators association examiners (MTRA). MTRA is an arm of various state banking department/financial institutions regulatory agencies that specialize in transmitters of money abroad, payment instruments issuers and travelers checks issuers. He is an anti money laundering consultant for many financial institutions in the U.S.

He was a former Financial Institutions Supervisor. As a Financial Institutions Supervisor, he was responsible for the senior, mid and entry level Financial Institutions Examiners.  He assisted in planning, organizing, and implementing the examination program and regulatory oversight for a group of licensees.  Prior to being promoted to this supervisory position, he was a Senior Financial Institutions Examiner with the Department of Financial Institutions, State of California. As a senior examiner, he was appointed by the Commissioner of Financial Institutions to the Internet Task Force and Special Licensees Task force. He was also one of the point persons during the Y2K conversion. In December 2002, he was awarded a rare State of California Superior Accomplishment Award and in the same month, he was awarded a Team Player of the Year Award by the Department of Financial Institutions for exhibiting a positive attitude, inspiring others to excel, and his contributions that continuously exceed expectations.   Prior to joining the Department of Financial Institutions, Robert was a Savings and Loan Examiner for the State of California and was involved in examining troubled Savings and Loans during the Savings and Loan crises.

An active member of his community, he is the past Chairman of the Institute of Chartered Accountants of Nigeria (ICAN) USA District Society and a current member of the board of trustee. He was a former President of the Nigerian American Chamber of Commerce. In 2004 and 2005, he was the President of the Parish Council and prior to that, he served as a member of the Finance Committee for seven years.

Submitted by mbamabob on Thu, 10/08/2015 - 18:24