Effect of Money Laundering on Nigerian Economy

Research Journal of Financial Sustainability Reporting, Vol. 1(2), p. 143-156, July-December 2016

14 Pages Posted: 21 Jul 2017

See all articles by Nestor Amahalu

Nestor Amahalu

Nnamdi Azikiwe University - Department of Accountancy

Mary-Fidelis Chidoziem Abiahu

Nnamdi Azikiwe University - Department of Accountancy

Okika Christian

Nnamdi Azikiwe University

Obi Chinyere

University of Nigeria Enugu Campus

Date Written: July 2016

Abstract

This study sets out to determine the effect of money laundering (proxy by fraud) on the Nigerian economy (decomposed into gross domestic product, federal government revenue, gross fixed capital formation). Ex-post facto research design was adopted. Secondary data were used in this study from Ministry of Finance, Budget office of the Federation and Central Bank of Nigeria statistical bulletin. The Augmented Dickey-Fuller (ADF) was used to test the time series data for stationarity. The co-efficient of regression was used to determine the significance of the relationship and direction of the variables used in the study. The result revealed that money laundering has a negative significant relationship with the Nigerian economy at 5% level of significance. The study recommends that there is need to re-appraise the re-established institutions (such as economic and financial crimes commission and independent corrupt practices and other related offences commission) fighting economic crimes particularly, their statutory functions

Keywords: Money Laundering, Fraud, Gross Domestic Product, Nigeria Economy

JEL Classification: G14, M40, O10

Suggested Citation

Amahalu, Nestor and Abiahu, Mary-Fidelis Chidoziem and Okika, Elochukwu and Obi, Juliet, Effect of Money Laundering on Nigerian Economy (July 2016). Research Journal of Financial Sustainability Reporting, Vol. 1(2), p. 143-156, July-December 2016. Available at SSRN: https://ssrn.com/abstract=3004880

Nestor Amahalu

Nnamdi Azikiwe University - Department of Accountancy ( email )

Awka, Anambra 23400
Nigeria
+2348063393668 (Phone)

Mary-Fidelis Chidoziem Abiahu (Contact Author)

Nnamdi Azikiwe University - Department of Accountancy ( email )

Awka, Anambra 23400
Nigeria

Elochukwu Okika

Nnamdi Azikiwe University ( email )

Department of Accountancy
PMB 5025
Awka, DE Anambra State +234
Nigeria

Juliet Obi

University of Nigeria Enugu Campus ( email )

Department of Accountancy
Box 15540, Enugu
Enugu, NC Enugu 234
Nigeria

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