THE LEGAL ASPECTS OF MERGERS AND ACQUISITION IN NIGERIA

by Legalnaija | Jan 22, 2025 | Uncategorized

INTRODUCTION

A company may decide to restructure its corporate outlook after its incorporation; this might either be as a result of the company’s financial state or due to depletion in the company’s economic growth.[1] Company restructuring may be internal or external. Internal restructuring options include; share consolidation; increase or reduction of share capital; arrangement and compromise under section 710 of CAMA, 2024 while external restructuring options include; Amalgamation or merger; take over; Acquisition, Arrangement on sale  and Purchase and Assumption[2]. This article focuses on Mergers and Acquisition.

MERGERS

Section 119 of Investment and Securities Act defines ‘merger’ to mean any amalgamation of the undertakings or any part of the undertakings or part of the undertakings of one or more companies and one or more bodies corporate. In simple words, a merger is the coming together of two or more companies to form a single corporate entity.

 ACQUISITION

An acquisition is an arrangement whereby one company acquires the controlling holding of shares in another company. In simple words, an acquisition occurs when one company acquires sufficient shares in another company such that it acquires control of the other company[3].  An acquisition may be initiated either by a take-over bid or by purchasing shares in the market. In most cases, the acquired company is usually a smaller company and becomes a subsidiary of the acquiring company.

OVERVIEW AND IMPORTANCE OF MERGERS AND ACQUISITION IN NIGERIA

Mergers and Acquisitions (M&A) are instrumental to corporate restructuring, enabling businesses to achieve growth, diversify, or gain competitive advantages. In Nigeria, M&A plays a significant role in the corporate landscape, particularly as companies seek to navigate a complex and competitive economy. These transactions, however, are governed by a legal framework designed to ensure transparency, protect stakeholders, and maintain competitive balance in the market.

The direct government intervention in the economy due to recapitalization in sectors like banking, insurance and aviation has led to increase in mergers in the country.

Importance of Mergers and Acquisitions in the Nigerian Economy

1. Increase in scale of production by greater specialization in plant and marketing economy through a reduction in advertising costs and distribution outlets.
2. It enhances corporate growth in the economy.
3. It boosts confidence in the market.
4. It enhances more and efficient reallocation of resources.
5. It provides a level ground for companies interested in merging regardless of their financial state.
6. It gives rise to healthy market competition thereby improving the quality of products and services delivered.[4]

LEGAL FRAMEWORK FOR MERGERS AND ACQUISITION IN NIGERIA

1. Corporate and Allied Matters Act (CAMA) 2020

The Corporate and Allied Matters Act (CAMA) is the principal law regulating companies in Nigeria[5]. Under CAMA, the legal procedures for corporate restructuring[6], including mergers and acquisitions, are clearly defined. CAMA requires companies to follow specific statutory procedures, including the passing of resolutions by shareholders, obtaining necessary approvals, and filing requisite documentation with the Corporate Affairs Commission (CAC). CAMA also provides protections for minority shareholders, ensuring that their interests are safeguarded during such transactions.

2. Investments and Securities Act (ISA) 2007

The Securities and Exchange Commission (SEC), established under the ISA, also plays a critical role in M&A regulation in Nigeria. SEC approval is mandatory for many M&A transactions, particularly where public companies are involved or where securities are exchanged as part of the transaction. SEC ensures that M&A transactions are conducted transparently, with proper disclosure of material information to protect investors and other stakeholders[7].

3. Federal Competition and Consumer Protection Act (FCCPA) 2018

The FCCPA established the Federal Competition and Consumer Protection Commission (FCCPC), which oversees competition and consumer protection in Nigeria. One of the core functions of the FCCPC is to regulate M&A transactions to prevent anti-competitive    practices. Section 93 (4) of the FCCPA provides that mergers above a certain threshold must be notified to the FCCPC for approval. The FCCPC evaluates M&A deals to ensure that they do not substantially lessen competition, create monopolies, or harm consumers.

4. Nigerian Stock Exchange (NSE) Rules

For companies listed on the Nigerian Stock Exchange, additional rules apply. The NSE requires listed companies to comply with disclosure obligations, including the need to announce merger or acquisition deals, provide updates to the public, and disclose relevant financial and operational information. This ensures market transparency and investor protection.

5. Bank and Other Financial Institution Act (BOFIA)

This act regulates the Central Bank of Nigeria and other financial institutions by providing general guidelines for them.

REGULATORY AGENCIES INVOLVED IN MERGERS AND ACQUISITIONS

1. Corporate Affairs Commission (CAC)

CAC is charged with responsibilities of issuing certification of corporate resolution, deregistration of companies dissolved.

2. Securities and Exchange Commission (SEC)

Every merger acquisition or external restructuring between or among companies shall be subject to the prior review and approval of the Commission. Approval for mergers, acquisition or external restructuring shall be given if, the Commission finds that;

1. Such acquisition, whether directly or indirectly, of the whole or any part of the equity or other share capital or of the assets of another company, is not likely to cause substantial restraint of competition or tend to create monopoly in any line of business enterprise;
2. The use of such shares by voting or granting proxies or otherwise shall not cause substantial restraint of competition or tend to create monopoly in any line of business enterprise
3. Though the contemplated merger is likely to restrain competition, one of the parties to the merger has proved that it is failing[8].

3. Federal High Court

Section 251 of the constitution vests in the Federal High court the powers to adjudicate issues regarding companies.

4. Nigerian stock Exchange

Nigerian Stock Exchange provides the platform in Africa for raising capital. It facilitates a thriving secondary market for trading securities and maintains a seamless flow of market information.

5. Central Bank of Nigeria(CBN)

CBN is charged with the responsibility of administering the Banks and Other Financial Institutions Act (BOFIA), 2020, with the sole aim of ensuring high standards of banking practice and financial stability through its surveillance activities, as well as the promotion of an efficient payment system.

6. Federal Competition and Consumer Protection Commission

The Commission evaluates mergers and acquisitions in Nigeria to ensure that they do not significantly diminish competition in the relevant market.

Categories of Mergers

There are three (3) categories of Mergers based on the threshold set by the Federal Competition and Consumer Protection Commission (FCCPC)[9], these categories are;

1. Small Merger

Section 95 (1) (a) of Federal Competition and Consumer Protection Act, 2018 classified a ‘small merger’ as a merger that does require a notification to the commission unless, within the six month period from implementation of the merger, as the commission is of the opinion that the merger may substantially prevent or lessen competition.

2. Intermediate Merger

An intermediate merger according to section 120 (1) of ISA is merger or a proposed merger with a value between the lower and upper thresholds of 500,000 and 5,000,000 respectively.

3. Large Merger

Section 120 (1) of ISA defines a large merger as a merger with a value at or above the upper threshold of 5,000,000.

Forms of Merger

There are three (3) forms of merger according to Rule 227 of SEC Rules. They include;

1. Horizontal Merger

This is a form of merger involving direct competitors i.e companies operating in the same market level and selling the same products or providing same services[10].

2. Vertical Merger

This is a form of merger involving companies with no competitive relationship. Although the companies involved operate in the same market, they do not sell products or offer services in the same market level[11].

3. Conglomerate Merger

This is a form of merger involving unrelated companies[12].

Procedures for Mergers and Acquisition under ISA and SEC Rules

1. The merging companies would first internally make a merger proposal to their separate boards to consider and approve.
2. It is encouraged that the legal representatives of the merging companies conduct due diligence exercise to determine and confirm the status of the merging companies.
3. The merging companies shall file with the Commission, a merger notification for the commission’s evaluation.
4. An application is then made to the court by any of the merging companies to sanction the scheme.
5. The court will order that all merging companies hold separate meetings with majority of its members representing not less than ¾ in value of shares of members being present and voting either in person or by proxy at each of the separate meetings.
6. Where ¾ in value of shares of members being present and voting either in person or by proxy agree to the scheme at the separate meetings, it shall be referred to the Securities and Exchange Commission (SEC) for approval.
7. Upon receiving the approval of the scheme from the merging companies, SEC shall investigate to find out if the scheme is likely to cause a substantial restraint or enable a monopoly.
8. If the merger involves transfer of shares or any class of shares in a transferor company and not less than 9/10 in the value of the shares involved, the transferee company may at any time within two months after the expiration of the four months compulsorily acquire the shares of the dissenting shareholders.
9. If SEC approves the scheme, any of the merging companies will apply to the court to sanction the scheme.
10. The merging companies are to comply with post-approval requirements[13].

Requirements for Merger Notification[14]

The merger notification shall be filed by submitting a report containing the following to SEC;

1. a letter of intent signed by the merging companies accompanied by board resolutions of the merging companies supporting the merger;
2. a detailed Information Memorandum of the proposed transaction including all the background studies relating to the merger, and justification for it which shall include the following:-
3. detailed information about product lines or operations of the companies;
4. a list of the major competitors in that product market and the market position or market share of each company;

• the structure and organization of the companies;

1. revenue information about the operations of the companies;
2. an analysis of the effect of the transaction on the relevant market including the post transaction market position of the merging or resultant company;
3. additional information to be disclosed/contained in an information memorandum which shall include the following:
4. State the products or services that the merging entities sell or provide in, into or from Nigeria. In addition, identify any products or services that you believe are considered by buyers as reasonably interchangeable with, or a substitute for, a product or service provided in, into or from Nigeria by parties to the merger;
5. For each identified product or service, state the geographic area (s) in Nigeria, in which the merging entities sell;
6. For each identified product or service, identify and provide contact details of the top five producers or providers in each identified geographical area with the largest estimated turnover in value, and their estimated share of the total turnover during the last financial year;
7. For each identified product or service, state the turnover in each of the identified geographical area during the last financial year;
8. For each identified product or service, identify and provide contact details for the merging entities’ five customers in each of the identified geographical area with the largest aggregate purchases in value during the last financial year;
9. The business relationship among the merging entities in terms of the products or services they sell to one another as well as the value of those products and services sold during the last financial year.

• The note shall also indicate whether the merger will involve the following:

1. Transfer of all or part of the assets, liabilities, undertakings, including real and intellectual property rights;
2. Transfer of shares or other interests.

• Where a company involved in the merger transaction claims that it is failing, the following documents shall be forwarded:

1. Financial information demonstrating that the firm will be unable to meet its financial obligations in future;
2. Information indicating that the failing firm would reasonably be expected to exit the market unless the merger is implemented.
3. The latest financial statement of the companies;
4. Certificate of the corporation of the merging companies.
5. Where a party to a small merger is required by the Commission to notify it of the merger, documents forwarded shall be the same as those required for a merger notification:
6. Extract of board resolutions of the merging companies authorizing the merger duly certified by a director and the company secretary;
7. A copy of the letter appointing the Financial Adviser(s);
8. Copy of certificate of incorporation certified by the company secretary;
9. CAC certified true copy of particulars of directors and allotment of shares;
10. Letter of no object from company’s’ regulators.(where applicable); 276 SEC Rules; June 2013
11. The audited accounts of the merging entities for the preceding five (5)years or the number of years any of the companies have been in operation if less than five (5)years;
12. Applicable merger notification fee of N50,000 (fifty thousand naira) per merging company (for intermediate and large mergers);
13. In the case of an intermediate or large merger a copy of the merger notification shall be forwarded to:
14. Any registered trade union that represents a substantial number of its employees; or the employees concerned or representatives of the employees concerned, if there are no such registered trade unions.
15. Additional information to be disclosed in the Information Memorandum includes:
16. The actual and potential level of import competition in the relevant industry;
17. The ease of entry into the industry, including tariff and regulatory barriers;
18. The level and trends of concentration and history of collusion in the relevant industry;
19. The degree of countervailing power in the market; v. The dynamic characteristics of the relevant industry including growth, innovation and product differentiation;
20. The nature and extent of vertical integration in the relevant industry; vii. Whether the business or part of the business of a party to the merger or proposed merger has failed or is likely to fail; viii. Whether the merger will result in the removal of an effective competitor;
21. Any other information that the Commission may require in respect of the Merger.
22. Merger applications may be filed by separate financial advisers (registered as an issuing house) or solicitor registered with the Commission for each of the merging companies, provided that in case of a small merger one (1) financial adviser may be used[15].

Key Legal Issues in M&A Transactions

1. Due Diligence

Before concluding M&A transaction, it is important that the merging companies conduct thorough due diligence. This process involves a detailed review of the target company’s legal, financial, and operational standing. Legal due diligence ensures that the company complies with all applicable laws, has clear title to its assets, and is free of significant liabilities. Failure to conduct comprehensive due diligence can result in significant post-transaction risks.

2. Shareholder Approval

The Securities and Exchange Commission is charged with the responsibility of ensuring that ¾ of shareholders agree to the M&A before a mergers and acquisition scheme is approved[16].

In the case of mergers, CAMA mandates that the shareholders of both merging companies pass special resolutions approving the merger. Minority shareholder protection is also a key consideration, as dissenting shareholders can object to the transaction and may be entitled to a buyout or other remedies as ordered by the court.

3. Regulatory Approvals

M&A transactions above certain thresholds must obtain approval from regulatory bodies such as the FCCPC and SEC[17]. In sector-specific industries, additional approvals from regulators like the CBN may be required. The process involved in securing these approvals can slow down the transaction, adding to the complexities of the process.

4. Contract Issues

The negotiation and drafting of M&A agreements are key legal steps in the process. It is important that M&A Agreements include representations and warranties of parties, conditions precedent and indemnities. It should also provide for Post-closing obligations, such as earn-out provisions or non-compete agreements, are also common in M&A deals. This ensures there is no ambiguity in the roles and obligations of parties in the merger.

5. Employment and Labor Considerations

When companies merge, the employees of the target company are often affected. The Nigerian labor laws, including provisions under the Labour Act, ensure that employees are treated fairly during corporate restructuring. Mergers and acquisitions may result in redundancies or changes to employment contracts, and companies must comply with these regulations to avoid labor disputes[18].

6. Tax Implications

Tax efficiency is a critical consideration in M&A transactions. Companies must consider the tax obligations arising from the transaction, including capital gains tax, value-added tax (VAT), and company income

7. Competition Law and Antitrust Concerns

FCCPC evaluates M&A transactions in Nigeria to ensure that they do not create monopolies or substantially reduce competition in the market. Companies involved in anti-competitive mergers may face penalties, and the transaction could be blocked or reversed[19].

CONCLUSION

In conclusion, mergers and acquisitions (M&A) are vital tools for corporate restructuring in Nigeria, allowing companies to enhance their growth, competitiveness, and market presence amidst a challenging economic landscape. Governed by a robust legal framework, including the Corporate and Allied Matters Act (CAMA) and the Investments and Securities Act (ISA), these transactions require careful adherence to regulatory approvals, shareholder agreements, and due diligence processes to ensure compliance and protect stakeholder interests. M&A can take various forms, including mergers, acquisitions, and amalgamations, and are categorized based on their financial thresholds, emphasizing the need for strategic planning to optimize resource allocation and market position. Ultimately, successful M&A activities can stimulate economic growth, improve market confidence, and foster healthy competition, contributing to the overall stability and development of the Nigerian economy.

[1] Corporate Law Practice in Nigeria, Samuel A. Osamolu at p. 399

[2] Ibid at p. 399-400

[3] Legal Framework on Mergers and Acquisitions  by Professor C. O Okonkwo accessed on 7^th October, 2024 at   https://www.cbn.gov.ng/out/publications/bsd/2005/legal%20framework%20for%20mergers%20%20acquisitions.pdf

[4] Corporate Law Practice in Nigeria, Samuel A. Osamolu at p.410

[5] Section 8, CAMA, 2020

[6] Section 710- 717 CAMA, 2020

[7] Section 119-130, ISA ACT, 2007

[8] Rule 423, SEC RULES 2013.

[9] Section 93 (4) Federal Competition and Consumer Protection Act, 2018

[10] Rule 421, SEC RULES, 2013.

[11] Ibid

[12] ibid

[13] Part XII of the Investment and Securities Act (ISA) No. 29, 2007, Part I of the Rules  & Regulations of the Securities & Exchange Commission 2013 (as amended)

[14] Section 426, Part I of the Rules  & Regulations of the Securities & Exchange Commission 2013 (as amended)

[15] Section 426, Part I of the Rules  & Regulations of the Securities & Exchange Commission 2013 (as amended)

[16] Part I of the Rules  & Regulations of the Securities & Exchange Commission 2013 (as amended)

[17] Section 427, Part I of the Rules  & Regulations of the Securities & Exchange Commission 2013 (as amended)

[18] Section 20, Labour Act, 1974

[19] Mergers Review Guidelines, Federal Competition and Consumer Protection Commission,2020

Via www.aocsolicitors.com.ng

Compensation Under Nigerian Employment Law

by Legalnaija | Jan 22, 2025 | Uncategorized

INTRODUCTION

In Nigeria, the landscape of employee compensation is shaped by combination of statutory provisions, industry practices, and economic factors. Understanding the legal consideration and the practical realities surrounding employee compensation is essential for both employer and employee. The employee compensation Act, of 2010, is a social; security/welfare scheme that provides comprehensive compensation to employees who suffer from accidents at the workplace or in the course of employment. The basis or justification for compensation is the employer’s duty of care.

Compensation under employment refers to the total rewards that employees receive in exchange for their labor and services. It encompasses both direct and indirect forms of payment and serves as a critical element of human resource management (Adair & Satyanarayana, 2018). Compensation impacts employee performance, motivation, and satisfaction, making it an essential component for organizational effectiveness.

Employee Compensation

Employee compensation serves as a critical aspect of labor law, aimed at ensuring that Employees receive adequate financial and healthcare support when they suffer workplace injuries or illnesses. In Nigeria, the Employees’ Compensation Act (ECA) of 2010 stands as a primary legislative framework to provide an equitable system of compensation for employees in the case of work-related accidents, injuries, and diseases. The Act replaced the earlier Workmen’s Compensation Act (WCA) due to its limitations and narrow focus, extending coverage to a broader scope of employment situations and types of injuries (Deloitte Corporate ServicesLimited [DCSL], 2012).

Components of Compensation

Compensation is generally divided into two primary types: direct compensation and indirect compensation.

Direct compensation includes monetary rewards such as base salary, bonuses, commissions and profit-sharing schemes. These financial incentives are designed to recognize and reward individual performance, aligning employee efforts with organizational goals (Adair & Satyanarayana, 2018). Indirect compensation, on the other hand, consists of non-monetary benefits, such as health insurance, retirement benefits, and paid leave. These benefits enhance job satisfaction and contribute to overall employee well-being by addressing various personal needs (Brown, 2003). Theories Related to Compensation, Several theories provide a foundation for understanding compensation' s impact on employee behavior. Reinforcement theory, proposed by B.F. Skinner, suggests that behavior can be motivated by rewards. When high performance is followed by positive reinforcement, such a monetary reward, employees are more likely to repeat this behavior in the future (Adari & Satyanarayana, 2018). Expectancy theory, developed by Victor Vroom, highlights that employees are motivated by expected rewards and are more likely to perform if they believe their efforts will lead to desired outcomes (Harrison & Liska, 2008). Finally, equity theory, introduced by John Stacey Adams, posits that employees assess fairness in their compensation by comparing their input-output ratio with that of others. Fair and competitive compensation packages can therefore enhance job satisfaction and reduce turnover (Adari & Satyanarayana, 2018).

LEGAL FRAMEWORK

Nigeria’s labor laws are primarily governed by the Labor Act, which sets the foundation for employment relationships. The Act outlines provisions related to wages, working hours, leave entitlements, and termination procedures. In addition, the Employee Compensation Act of 2010 specifically addresses compensation for work-related injuries, disabilities, or death, establishing a framework for employer liability in such cases. The Employees’ Compensation Act, 2010, was signed into law on 17th December 2010. This Act repeals the Workmen’s Compensation Act Cap. W6 Laws of the Federation of Nigeria, 2004, and makes comprehensive provisions for payment of compensation to employees who suffer from occupational diseases or sustain injuries arising from an accident at the workplace or in the course of employment. Guidelines for the Release of Staff in the Nigerian Oil and Gas Industry 2019 issued further to the provisions of the Petroleum (Drilling and Production) Regulations 1969 (as amended), made under the Petroleum Act, Cap P10, LFN 2004 (now the Petroleum Industry Act, 2021); Nigeria Data Protection Regulation 2019 issued by the National Information Technology Development Agency.

Categories of compensation

1. Compensation for death

In the event that an employee dies in an occupational accident or of an occupational disease, the family members are paid: a funeral allowance and a pension. Persons considered to be family members are specified in the Workers’ Compensation Act. Notably, the provision of section 7 of the Act widens the scope of liability of an employer to the employee, providing that:

Section 7 (1) Any employee, whether or not in a workplace, who suffers any disabling injury arising out of or in the course of employment shall be entitled to payment of compensation by Part IV of this Act.

(2) An employee is entitled to payment of compensation concerning any accident sustained while on the way between the place of work and:

(a) The employee’s principal or secondary residence

(b) The place where the employee usually takes meals; or

(c) The place where he usually receives remuneration provided that the employer has prior notification of such a place.

Scale of Compensation: The scale of compensation for an injury, disease, or death suffered in the course of employment is provided under Part IV of the Act. Section 17 of the Act provides for compensation in fatal cases, stating that where death results from an injury of an employee, compensation shall be paid to the dependents of the deceased. The compensation paid to the employee’s widow (err) or children ranges from 30% – 90% of the employee’s total monthly remuneration as of the date of death, although this is dependent on the circumstances of the dependents. Section 17 – 25 of the Act. Where the compensation offer is accepted, this further bars the affected employee or his siblings from instituting any legal action against the employer in respect of the same subject matter.

Employer’s Liability: Employers are held liable for providing compensation to employees affected by work-related incidents. The Act specifies the obligations of employers in promptly reporting accidents, facilitating medical examinations, and ensuring compliance with the compensation process. Section 5 of the Act

Establishment of the Employees Compensation Fund: The legislation mandates the creation of the Employees Compensation Fund, managed by the Nigeria Social Insurance Trust Fund (NSITF). The fund serves as the financial pool from which compensation payments are made to eligible employees. Section 56 – 63 of the Act

Compensation Administration: The Act establishes the administrative structure for the implementation of the compensation scheme. This includes the role of the NSITF in managing the fund, adjudicating claims, and overseeing the overall compensation process. However, more recent studies by Nnedinma Umeokafor, over an 11-years period [2002-2021], found that of the reported accidents: 80% occurred at night; manufacturing of rubber products accounted for the highest number of injuries at 53.8% for death. Sections 31 and 32 of the Act

One notable achievement is the clear articulation of the compensation process, providing a structured mechanism for addressing work-related incidents. The legislation establishes a no-fault compensation scheme, shifting the focus from attributing blame to swiftly compensating employees. This is a positive departure from traditional legal processes that could be protracted and adversarial. In Nigeria there is a dearth of accurate information involving fatalities arising from work injuries. One responsible cause is the underreporting of cases by private business and government agencies. However, according to Ezenwa A.O, between 1987 and 1996, the annual case fatality rate ranged from 0.94 per 100 injured workers 1990 to 5.41 in 1994 with an overall fatality rate of 2.23 per 100 injured workers.

2. Compensation for injury:

It is common for workers to suffer injury or incur liabilities during the course of employment. This is more common with employee’s whose employment requires them to work with delicate and complex medium and heavy duty machinery, such as workers on an oil rig, a manufacturing company, a laundry service or even a restaurant.

The Act provides in section 7, that:

. Any employee, whether or not in a work place, who suffers any disabling injury, occurred, as the Act provides other instances when the employee will be liable to compensation for injury suffered.

The Act provides in subsection {2} that:

“An employee is entitled to payment of compensation with respect to any accident sustained while on the way between the places of work. In c & c const. co Ltd. V. okhai {2003} 18 NWLR [pt.851]79, the respondent, while on duty which involved the serving of the appellants crane sustained grievous injuries arising out of the 2nd appellant failure as switch operator to use due care thereby causing the crane to become agitated and resulting in a drum of the crane to rollover violently over the respondents’ left foot, crushing that leg below the knee. For this he was under great pain and suffering for which he was hospitalized and this eventually led to the amputation of that leg. The employee was awarded damages for loss of earning capacity, future loss and damages for pain and suffering.

Impact of Compensation on Employee Performance

Compensation is not only a reward but also a tool for driving employee performance. Research suggests that competitive compensation packages attract and retain high-performing employees, contributing to organizational success (Pearce, 2010). Employees who feel adequately compensated are more likely to exhibit higher levels of motivation, engagement, and productivity (Brown, 2003). Moreover, when compensation is linked to performance, such as through merit pay or profit-sharing programs, employees become more focused on achieving organizational objectives (Adari & Satyanarayana, 2018).

For example, merit pay, a common performance-based compensation method, has been shown to encourage employees to meet or exceed performance benchmarks. Profit-sharing plans, though more indirectly tied to individual performance, foster a sense of ownership and alignment with organizational goals among employees (Adari & Satyanarayana, 2018). However, to maximize these effects, compensation systems must be thoughtfully designed to balance financial incentives with intrinsic motivators, ensuring sustained employee motivation an minimizing unhealthy competition within the workplace (Adari & Satyanarayana, 2018).

The Nigerian Employees’ Compensation Act of the Nigerian Employees’ Compensation Act, 2010 (ECA) offers a legal framework for compensating employees who suffer injuries, disabilities, diseases, or death as a result of their employment. This Act, enacted to replace the Workmen’s Compensation Act of 1987, aims to protect employees through a structured compensation scheme. The ECA aims to create an &quote; open and fair system of guaranteed and adequate compensation for all employees or their dependants" in instances of death, injury, disability, or illness arising from the course of employment (DCSL, 2012).This compensation includes not only financial benefits but also rehabilitation services, which extend to both physical and mental health support. Unlike the WCA, which had a narrow focus primarily on physical injuries, the ECA covers mental health issues directly linked to traumatic workplace events or ongoing workplace conditions. For instance, mental stress is considered compensable if it results from a traumatic event in the workplace, making this legislation comprehensive in its approach to employee welfare (DCSL, 2012).

Objective of the Act

The primary purpose of the ECA is to provide compensation for employees who suffer from work-related injuries, diseases, or fatalities. Anushiem and Oamen (2017) explain that the Act intends to provide a more inclusive and effective compensatory regime, which was a significant departure from the employer-friendly nature of the repealed Workmen’s Compensation Act. The ECA aims to create a balanced framework benefiting both employees and employers, with specific objectives outlined in Section 1 of the Act. These objectives include ensuring fair compensation for injuries, establishing a compensation fund, and creating mechanisms for rehabilitation and prevention (Anushiem & Oamen, 2017). How the Nigerian Employees’ Compensation Act 2010 Transmits to Compensation Under Employment. The Employee Compensation Act (ECA) of 2010 creates a structured way for Nigerian employees to receive compensation if they experience work-related death, injury, disease, or disability. It translates into an employment compensation framework by mandating financial protection measures that employers must implement. Here's how this framework transmits to practical compensation under employment:

1. Mandatory Contributions: The ECA obligates all Nigerian employers (both public and private sector) to contribute 1% of each employee' s monthly salary to the Employee Compensation Fund. This fund is managed by the Nigerian Social Insurance Trust Fund (NSITF) Board and provides resources to compensate employees or their dependents in cases of workplace-related incidents.
2. Compensation Coverage: Compensation under the Act applies if an employee experiences harm due to work activities. This includes: o Death: The Act mandates financial support for dependents of employees who pass away from work-related injuries. Section 17 specifies that dependents, such as spouses or children, may receive 30-90% of the deceased employee’s monthly remuneration, depending on their circumstances. O Injury and Disability: The Act provides for compensation to employees suffering from work-related injuries or disabilities that impact their ability to work. This allows affected employees to maintain financial stability while recovering or adapting to long-term changes in their work capabilities. o Disease: For work-related diseases, the Act ensures compensation for medical expenses and other costs arising from the diagnosis and treatment of conditions linked to employment.
3. Legal Limitation on Further Claims: Acceptance of compensation under the ECA means that the employee (or dependents) agrees to forego any further legal claims against the employer for the same incident. This protects the employer from repeated liability and provides employees with an expedited, guaranteed source of compensation without lengthy legal battles.

Scope and Application of the Act

The ECA applies to both public and private sector employees in Nigeria, encompassing a broad definition of & quote; employee & quote; to include anyone under contract, whether oral or written, continuous, temporary, or part-time (Anushiem & Oamen, 2017). However, military personnel in non- civilian capacities are excluded from the Act’s protections. This broad coverage ensures that nearly all employees have access to compensation for injuries or diseases arising out of their employment.

Administration and Compliance Requirements

The Nigeria Social Insurance Trust Fund (NSITF) Management Board is tasked with administering the ECA. Employers are mandated to contribute at least 1% of their total monthly payroll to the Employees’ Compensation Fund (ECF) within the first two years of the Act’s commencement. This fund is used to provide financial support and medical assistance to employees impacted by workplace injuries. The NSITF also has the discretion to adjust contribution rates based on the risk level associated with specific industries. Penalties are imposed on employers for non-compliance, including fines, penalties on unpaid assessments, or even imprisonment for responsible officers who neglect to make required contributions or provide payroll data (DCSL, 2012). Criticisms and Challenges of the ECA While the ECA represents a significant improvement over the WCA, several critiques exist. One major concern is the management of the ECF by the NSITF Board, which some argue lacks adequate transparency and efficiency. Another issue is the broad discretion given to the NSITF to adjust employer contributions, potentially leading to inconsistent assessments and unpredictability for employers. Moreover, unlike the WCA, the ECA does not provide a detailed schedule of compensations for various types of injuries and disabilities, which may lead to inconsistencies in compensation amounts and potential disputes between employers and employees (DCSL, 2012).

Despite the ECA’s progressive provisions, several operational issues still affect its effectiveness. Anushiem and Oamen (2017) highlight these key areas:

1. Appeal Procedure: Section 55 of the ECA provides a unique appeal structure, where aggrieved employees must first appeal to the Nigerian Social Insurance Trust Fund (NSITF) Board before approaching the National Industrial Court. Critics argue that this procedure conflicts with fair justice principles because the Board acts both as a party and judge in initial appeals. Anushiem and Oamen (2017) argue that this could lead to partiality, proposing instead that a pre-action notice should replace the internal appeal requirement.
2. Compensation for Mental Stress: Section 8 of the ECA covers compensation for mental stress but lacks a clear definition, leaving interpretation to the NSITF Board. This provision allows for compensation if mental stress is a direct reaction to a traumatic event at work. The ambiguity, however, may limit practical enforcement, as the Board has significant discretion to determine eligibility for mental stress compensation (Anushiem & Oamen, 2017).
3. Occupational Diseases and Schedule Limitations: The Act lists compensable occupational diseases, yet it does not meet international standards, excluding several recognized conditions such as mental and behavioral disorders. Section 9 of the Act requires that these diseases must result in either death or disability for compensation eligibility. This limited list restricts the rights of employees suffering from unlisted conditions, potentially excluding valid claims (Anaheim & Oamen, 2017).

CHALLENGES AND REALITIES

However, the effectiveness of these laws faces challenges in practical implementation. Delays in the disbursement of compensation and disputes over the extent of liability are issues that need attention. The administrative hurdles and complexities in navigating the compensation process sometimes hinder the timely delivery of benefits to affected employees. Furthermore, the scope of these laws may need to advance to address the changing nature of work. The rise of non-traditional employment arrangements, such as gig work and freelancing, presents new challenges in defining employer-employee relationships and determining liability in the event of work-related incidents.

To enhance the impact of Employee Compensation laws in Nigeria, there is a need for strengthened enforcement mechanisms. This involves ensuring that employers are aware of their obligations and are held accountable for compliance. Furthermore, streamlined and efficient processes for filing and adjudicating compensation claims can contribute to a more expeditious resolution of cases.

Public awareness campaigns can also play a crucial role in informing both employers and employees about their rights and responsibilities under these laws. Improved awareness can contribute to a culture of safety in workplaces and empower workers to assert their rights when necessary.

Despite the existence of robust legal frameworks, several challenges persist in the realm of employee compensation in Nigeria. Enforcement of labor laws can be inconsistent, especially in smaller enterprises or informal sectors where oversight is limited. This inconsistency sometimes leads to exploitation and unfair practices, such as inadequate wages or denial of benefits.

Moreover, the complex nature of the labor market, including issues like contract work, outsourcing, freelancing, and gig employment, poses challenges in defining and ensuring fair compensation. The evolving nature of work requires continuous adaptation of legal frameworks to address emerging trends and protect the rights of all workers.

Conclusion

The Employees’ Compensation Act is a vital piece of legislation that addresses the shortcomings of its predecessor, offering an inclusive framework for compensating employees for a wider array of work-related injuries and conditions. While challenges remain in the administration and scope of the Act, it has undeniably advanced employee welfare in Nigeria, establishing a comprehensive system for workplace injury compensation. Compensation remains a central factor in employee satisfaction, motivation, and performance. A well-designed compensation strategy that aligns with industry standards and employee expectations can enhance employee productivity and loyalty. Thus, organizations must continuously assess their compensation systems to ensure they support both employee well-being and business objectives (Adari & Satyanarayana, 2018).

References

• Adair, T., & Satyanarayana, G. (2018). Impact of compensation on employee performance.
• Intercontinental Journal of Human Resource Research Review, 6(4), 1-7.
• Anaheim, M. I., & Oamen, P. E. (2017). Nigerian Employees’ Compensation Act 2010: Issues
• Arising. African Journal of Comparative and International Law, 1(1), 53-63.
• Brown, D. (2003). Reward strategies. Journal of Personnel Management, 1, 17-29.
• Deloitte Corporate Services Limited. (2012). A review of the Employees Compensation Act 2011.
• Harrison, D. A., & Liska, Z. (2008). Promoting regular exercise in occupational fitness Programs. Journal of Personal Psychology, 5(5), 27-45.
• Pearce, L. (2010). Managerial compensation based on organizational performance. Journal of industrial relation 52, 3-28

Via www.aocsolicitors.com.ng

International Law Association Nigeria (ILA) kicks off registration for its 8th Annual Conference

by Legalnaija | Jan 5, 2025 | Uncategorized

International Law Association (ILA) kicks off registration for its 8th Annual Conference: Early bird registration ends on January 30

To examine the role of international law in boosting regional trade and investment integration as a tool for sustainable development, the Nigerian branch of the International Law Association (ILA Nigeria) will hold its annual conference from April 09-10, 2025.

In a statement by the organizers, this year’s conference, which will hold at Afe Babalola University, Ado Ekiti, will provide a platform for international lawyers to explore the dynamic role of international law in fostering trade and investment that leads to sustainable and inclusive growth. As globalization deepens, the importance of international legal frameworks in guiding and fostering international trade and investment becomes paramount. One of the largest and most anticipated annual legal events, this conference will gather legal scholars, practitioners, policymakers, and business leaders to discuss, debate, and propose forward-looking legal solutions that can contribute to a sustainable global economy.

Confirmed speakers for the conference include H.E Chief Olusegun Obasanjo, GCFR, Former President of the Federal Republic of Nigeria; H.E Omar Alieu Touray, President of the Economic Community of West African States (ECOWAS) Commission, H.E Professor Emmanuel Ibe Kachikwu, Former Minister of State for Petroleum Resources of Nigeria and former President of the Organization of Petroleum Exporting Countries (OPEC); and Professor Damilola Olawuyi, SAN, President of ILA Nigeria and United Nations independent expert on the working group on business and human rights; Mohammed Mijindadi, President and CEO of General Electric (GE) Nigeria and Managing Director of GE Gas Power Systems (GPS) for Nigeria and Anglo-West Africa; Wola Joseph-Condotti, Group Managing Director/CEO, West Power & Gas Limited, amongst other notable experts.

According to the conference registration schedule, early bird discount is expected to end on January 30, 2025.

The ILA was founded in Brussels in 1873. The ILA now has some 4,500 members in 45 national and regional branches around the world. It is headquartered in London under the leadership of the global chair, Professor Christine Chinkin. The Nigerian Branch of the ILA regularly hosts innovative lectures, seminars, conferences, and other capacity development programs to advance the study and understanding of international law in Nigeria. To learn more about the ILA, its activities, and events visit http://www.ilanigeria.org.ng

Flash Sale: Unlock Free Access to Our Lawyers Directory!

by Legalnaija | Dec 11, 2024 | Uncategorized

Dear Subscriber,

We are thrilled to announce an exciting new offer at Legalnaija! For a limited time, we are offering a free subscription to our comprehensive Lawyers Directory. This exclusive offer is our way of saying thank you for being part of our community and supporting our mission to enhance access to legal services.

How Our Subscription Works:

We have two subscription plans: the Basic Plan and the Premium Toplisting Plan, either of which allow you to subscribe monthly or yearly.

Basic Plan:

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• Access to the Directory and clients
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How to Get Started:

1. Visit your dashboard or create an account via Legalnaija Sign-In.
2. Navigate to the Plans section.
3. Enjoy your free access to all the directory’s features!

This is the perfect opportunity to explore our platform, connect with legal experts, and see the value that our directory can bring to your legal needs. Don’t miss out—this offer is available for a limited time only!

Thank you for being a valued member of the Legalnaija community. We look forward to continuing to support you with the best legal resources and connections.

Warm regards, The Legalnaija Team

NBA IBADAN AT 70: A Grand Style Celebration Like No Other

by Legalnaija | Dec 2, 2024 | Uncategorized

The Nigerian Bar Association (NBA) Ibadan Branch will proudly mark her momentous milestone in grand style with events starting from 13th December, 2024 to 18th December, 2024. It’s the 70th Anniversary of the Premier Bar and to celebrate this legacy, the Anniversary Planning Committee ably-led by Asiwaju Adebayo Mutalabi Ojo, SAN has planned an exciting week of activities, blending intellectually stimulating events with vibrant social engagements.

With a lineup of carefully curated programs, the celebration promises to be engaging, enriching and memorable. Below is a sneak peek at the schedule of events to look forward to as the Ibadan Bar celebrates seven decades:

 DAY 1: FRIDAY, 13TH DECEMBER, 2024:

• JUM’AH SERVICE

Venue: Ansarudeen Central Mosque, Liberty Road, Ibadan.

Time: 12:30pm prompt.

• OLD SCHOOL/DJ NIGHT (Evening Social Event)

Venue: Aare Afe Babalola Bar Centre, Iyakanku, Ibadan.

 DAY 2: SATURDAY, 14TH DECEMBER, 2024

• HEALTH WALK

Take-Off Point: Afe Babalola Bar Centre, Iyaganku, Ibadan.

Time: 8:00am prompt.

• AARE AFE BABALOLA/ NBA, IBADAN FOOTBALL COMPETITION FINALS

Venue: Olubadan Stadium, Iyakanku, Ibadan.

Time: 3pm prompt (3rd Place Match)

5pm prompt (Final Match)

• PREMIER LEAGUE NIGHT (Evening Social Event)

Venue: Aare Afe Babalola Bar Centre, Iyakanku, Ibadan.

 DAY 3: SUNDAY, 15TH DECEMBER, 2024

• INTER DENOMINATIONAL CHURCH SERVICE

Venue: St. Anne’s Church, Molete, Ibadan

Time: 10am prompt.

• MOVIE NIGHT (Evening Social Event)

Venue: Aare Afe Babalola Bar Centre, Iyakanku, Ibadan.

 DAY 4: MONDAY, 16TH DECEMBER. 2024

• THE OPENING CEREMONY

Venue: Aare Afe Babalola Bar Centre, Iyaganku, Ibadan, Oyo State

Time: 10am prompt.

Chairman of the Opening Ceremony: Hon. Justice Olukayode Ariwoola, GCON, former Chief Justice of Nigeria.

The Keynote Speaker: Mr. Babatunde Raji Fashola, SAN, Former Governor of Lagos State.

Special Guest of Honour: His Excellency, Engr, Oluwaseyi Makinde FNSE, Governor of Oyo State

Guest of Honour: Prince Lateef Fagbemi, SAN, Honourable Attorney General of the Federation and Minister of Justice of the Federal Republic of Nigeria.

Host: Ibrahim Lawal, Esq., Chairman, NBA, Ibadan Branch.

Chief Host: Honourable Justice I.S Yerima, Chief Judge of Oyo State.

• PLENARY SESSION I:

Topic: Tax and its Administration in Nigeria

Time: 11:00 am.

Chairman: Hon. Justice Olukayode Ariwoola, GCON, former Chief Justice of Nigeria.

Speaker: Dr Zacheaus Adedeji, Chairman, Federal Inland Revenue Services

Discussants:

1. Professor Abiola Sanni, SAN, Dean, Faculty of Law, University of Lagos,

2. Prince Akinmade Ajibola, Chairman, Tax Appeal Tribunal, South Western Zone

3. Mr. Olufemi Awakan, Executive Chairman, Oyo State Board of Internal Revenue.

Moderator: Dr. Wale Akinlabi FCIArb (UK)

• SESSION II: OWOLABI AFUYE MEMORIAL LECTURE

Topic: Medical Malpractices and Negligence; Law to the Rescue

Time: 12:30pm.

Chairman: Professor Yusuff Alli, SAN, Principal Partner, Ghalib Chambers, Ilorin, Kwara State

Speaker: Honourable Justice P.O Ige, JCA (Retired)

Discussants:

1. Prof. S.B Odunsi, Faculty of Law, OAU, Ile Ife

2. Prof. Simisola Akintola, Former Dean, Faculty of Law, University of Ibadan.

3. Dr Shade Adegbite, Associate Professor, Faculty of Law, University of Lagos.

4. Dr Folake Tafita, University of Ibadan and a Registered Nurse

5. Dr. Olubukola Ogunlade, Head of Legal, University College Hospital, Ibadan.

Moderator: Mr. Oladipo Olasope, SAN.

• VARIETY NIGHT (Evening Social Event)

Venue: Aare Afe Babalola Bar Centre, Iyakanku, Ibadan.

 DAY 5: TUESDAY, 17TH DECEMBER, 2024

• SESSION III (MORNING)

Topic: Intellectual Rights Infringement in the 21st Century

Time: 10am.

Chairman: Prof. Bankole Shodipo, SAN

Speaker: Dr. John O. Asein, Director General, Nigerian Copyright Commission.

Discussants:

1. Mr. Oyetola M. Atoyebi, SAN, Managing Partner, Omaplex Law Firm

2. Dr. Emmanuel O. Olowononi, Senior Lecturer Nigerian Law School, Abuja and a sports law Expert.

3. Mogaji Rotimi Alli, Chairman, Ibadan Football Council and a Member of Oyo State Football Association.

4. Dr. Tolulope Aderemi, Entertainment Law Attorney.

5. Mrs. Oyinkansola Badejo-Okunsanya, Managing Partner, Africa Law Practice NG & Co.

Moderator: Mr. Kazeem Adekunle Gbadamosi, SAN

• SESSION IV (AFTERNOON)

Topic: The Lawful Use of Robotics and Artificial Intelligence in Legal Practice in Nigeria

Time: 12pm.

Chairman: Hon. Justice Mojeed Owoade, JCA (Retired)

Speaker: Dr Saheed Ayoola, Director of Robotics and Artificial Intelligence in Nigeria.

Discussant :

1. Mr. Ope Olusaga, Managing Director, Law Pavilion Business Solutions Ltd.

2. Mr. Oluwaseun Abimbola, SAN, Managing Partner, Prime Solicitors

3. Dr. Olumide Ayeni, SAN

4. Mr. Rotimi Ogunyemi, Technology Law Attorney, Lagos.

5. Engineer Abiodun Fijabi, Principal Consultant, Lord Princely Associates Limited, Abeokuta, Ogun State.

6. Chimezie U. Okoli, Esq., Faculty of Law, University of Ibadan.

Moderator: Professor Babatunde Oni, SAN.

• KARAOKE/GAMES NIGHT (Evening Social Event)

Venue: Aare Afe Babalola Bar Centre, Iyakanku, Ibadan.

 DAY 6: WEDNESDAY, 18TH DECEMBER, 2024

• SESSION V (MORNING): State of the Nation Session in honour of Late Arakunrin Oluwarotimi Odunayo Akeredolu, CON, SAN, distinguished Patron, Past Chairman of the Branch, Past President of NBA and former Governor of Ondo State

Topic: The Tinubu Administration’s Economic Agenda and Policy: How far, so far?

Time: 10am.

Chairman: Chief Charles Akinlolu Olujinmi, SAN, Former Attorney General of the Federation & Minister of Justice.

Special Guest of Honour: Mr. Lucky Orimisan Aiyedatiwa, The Executive Governor of Ondo State

: Speaker: Dr Ebun-Olu Adegboruwa, SAN

Discussants:

1. Dr. Surajudeen Ajibola Basiru, National Secretary, APC

2. Dr. Segun Sowunmi, PDP Chieftain and Public Affairs Analyst The Tinubu Administration’s Economic Agenda and Policy: How far, so far?

Moderator: Mr. Musibau Adetunbi, SAN

• SPECIAL SESSION: CNG as an alternative to the rising cost of Premium Motor Spirit{PMS} in Nigeria; prospects and challenges

Discussants:

Managing Director, BOVAS

Managing Director, NIPCO

Moderator: Olalekan Thanni, Esq.

• SESSION II (AFTERNOON): SEGUN ADERIBIGBE/YLF IBADAN ESSAY COMPETITION PRESENTATION

Time: 12pm-1pm

Chairman: Mr. Oluwaseun Abimbola, SAN, Managing Partner, Prime Solicitors

Topic: A Review of Community Service As Corrective Regimen For Convicted Internet Fraudsters

Coordinator: Timileyin Olayiwola, Esq., Chairman, Young Lawyers’ Forum, Ibadan Branch.

Moderator: Tomiwa Fadeyi, Esq., Chairman, Academic Board, YLF, Ibadan Branch.

• THE 70TH ANNIVERSARY DINNER & AWARD NIGHT

Red Carpet: 4:30pm

Venue: Aare Afe Babalola Bar Centre, Iyaganku, Ibadan.

Chairman: Alhaji Ahmed Raji, SAN, Principal Partner, Ahmed Raji & Co

Guest of Honour: Honourable Justice I. S Yerima, Chief Judge of Oyo State

Dinner Speech by: Aare Olumuyiwa Akinboro, SAN, Past General Secretary of NBA and a life Bencher.

Chief Host: Ibrahim Lawal, Esq., Chairman, NBA, Ibadan Branch.

Investiture of a New Patron:

Dr. Wale Babalakin, SAN to be inducted as a new patron of NBA, Ibadan Branch

Presentation of Award of Excellence to the following deserving members of Ibadan Bar.

1. Hon. Justice L. A Ganiyu , Justice of Court of Appeal

2. Hon. Justice Olukayode A. Adeniyi , Justice of Court of Appeal (Former Chairman, NBA, Ibadan Branch).

3. Hon. Justice Oyebola Oyewumi, Justice of Court of Appeal

4. Hon. Justice R.O Ayoola, Justice of Court of Appeal.

5. Hon. Justice, T.M Abdulganiyu, President, Customary Court of Appeal, Oyo State.

6. Hon. Justice Oluwatosin Popoola, a Judge of High Court of Lagos State.

7. Hon. Justice M.O Folorunsho , a Judge of High Court of Kwara State.

8. Mr. Akinyemi Olujinmi, SAN

9. Mr. Yusuff Tunji Ogunrinde, SAN

From thought-provoking lectures featuring reputable discussants to lively social gatherings designed to foster relationships, the 70th Anniversary will offer something for everyone. Kindly pre-register for the event via https://nbaibadan.org.ng/70thanniversaryregistration/ and do not forget to purchase your dinner ticket via https://nbaibadan.org.ng/dinner-ticket/

For more enquires, kindly contact 70thanniversary@nbaibadan.org.ng.

Evidence Law: A Common Ground Between Civil And Criminal Litigation (Part 2) | Wale Adeagbo AICMC

by Legalnaija | Nov 28, 2024 | Uncategorized

DOCUMENTARY EVIDENCE

Evidence tendered by the use of documents is simply referred to as documentary evidence. Section 258(1) of the Evidence Act, 2011, has defined the word document very extensively to include books, maps, plans, graphs, drawings, photographs, discs, tapes, soundtracks, films, negatives, computer outputs and so on. Documentary evidence is of two types to wit- private and public documents.[1]

It should be noted that be it private or public, the best evidence of the contents of a document is the production of the document itself.[2] Thus, the contents of a document can only be proved by tendering its original copy or secondary evidence thereof, upon proper foundation being first laid for the admissibility of such secondary evidence. Section 88 of the Evidence Act has provided that documents shall be proved by primary evidence, except in the cases and instances stipulated in the Evidence Act.

Primary Evidence

As brilliantly captured by the provisions of Sections 85 and 88 of the Evidence Act, the contents of documents may be proved either by primary or secondary evidence. Section 86 of the Act has described primary documentary evidence to mean the original document itself; each part of a document executed in several parts; the counterpart of a document executed by a party; and documents made by one uniform process (printing, photography, electronic process), each of which shall be the primary evidence of the contents of the rest.

Secondary Evidence

Secondary evidence includes certified copies in line with the Act; copies made from the original by electronic or mechanical processes; copies made from or compared with the original; counterparts of documents as against the parties who did not execute them; and oral accounts of the contents of a document given by some person who has himself seen it.[3]

A photocopy of a document be it private or public, being secondary evidence of the contents of the original, is inadmissible. However, for such secondary evidence to be admissible, the proper foundation must be laid. The instances by which secondary evidence may be given are as provided under Section 89 as follows:

1. When the original is in the possession of the adversary;
2. When the original has been destroyed or lost and a search has been made for it in the latter case;
3. When the original is not movable;
4. When the original is a public document within the meaning of Section 102, Evidence Act;
5. When the original is a document of which a certified copy is permitted;
6. When the original consists of documents which cannot be conveniently examined in court, etc.

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Admissibility of documentary evidence

It has now become trite that the admissibility of a document and the evidential weight to be attached to it are very distinct. See ISMAILA v. MATHEW.[4] For a document to be admissible, it has to pass through the tripartite criteria of:

• Being pleaded;
• Being relevant; and
• Being admissible in law.

ASSESSMENT DRILLS

1. Evidence Act, 2011 defines evidence to mean:
2. The fountainhead of a party’s case
3. The instrument regulating the procedure of evidence in the Nigerian legal system
4. quasi meaning
5. none of the above

2. Evidence includes the following:
3. Testimony
4. Oral evidence
5. Depositions
6. All the above

3. The Evidence Act empowers the Attorney General of the Federation to make regulations in respect to admissibility of evidence under Section:
4. 252
5. 245
6. 254
7. 255

4. Rules of Court form part of the legal framework of the law of evidence:
5. Probably
6. Undecided
7. No
8. Yes

5. Affidavit evidence is most appropriate in matters initiated by:
6. Writ of summons
7. Writ of execution
8. Originating claims
9. Originating summons

6. Your answer in No 5 above is because the matter is:
7. Contentious
8. Equilibrium
9. Potentially contentious
10. Non-contentious

7. Documents attached to an affidavit:
8. Do not concern the court
9. Form part of the evidence
10. Need not be admissible ordinarily
11. B and C above

8. Brail is deemed and considered to be oral evidence:
9. Probably
10. Undecided
11. No
12. Yes

9. Re-examination is employed to:
10. Restate evidence
11. Re-strategize
12. Clear ambiguities
13. Clear ambiguities and restore credibility

10. The best evidence of the contents of a document is:

1. Primary evidence
2. Secondary evidence
3. Private evidence
4. Original

REFERENCES

[1] Sections 102 and 103, Evidence Act.

[2] Ogah v Ikpeazu (2017) 17 NWLR (Pt. 1594) 299 at 343

[3] Section 87, Evidence Act.

[4] (2017) All FWLR (Pt. 891) 824 @ 836 CA

Legal Awareness: Why Citizens and Businesses Must Stay Informed

by Legalnaija | Nov 24, 2024 | Uncategorized

In today’s fast-paced and complex world, legal awareness is more crucial than ever for both citizens and businesses. Being legally aware means understanding your rights and responsibilities under the law, recognizing how legal issues affect your life and operations, and knowing how to navigate the legal landscape effectively. Here’s why staying legally informed is essential and the benefits it brings.

The Importance of Legal Awareness

1. Protection of Rights and Interests

– For Citizens: Understanding your legal rights ensures that you can protect yourself from exploitation, discrimination, and injustice. It empowers you to challenge unfair practices and seek redress when your rights are violated.

– For Businesses: Legal awareness helps businesses comply with regulations, avoid legal pitfalls, and protect their intellectual property. It also enables businesses to operate ethically and maintain a good reputation.

2. Informed Decision-Making

– For Citizens: Knowing the legal implications of your actions allows you to make informed decisions in personal and professional matters. This includes everything from signing contracts to understanding employment rights and consumer protection laws.

– For Businesses: Legal knowledge is vital for making strategic business decisions, such as entering into partnerships, expanding operations, and managing risks. Informed decision-making can prevent costly legal disputes and ensure long-term success.

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3. Conflict Resolution

– For Citizens: Being aware of legal processes and options for conflict resolution, such as mediation and arbitration, can help individuals resolve disputes amicably and efficiently.

– For Businesses: Businesses can benefit from understanding the legal frameworks for resolving commercial disputes, protecting their interests, and maintaining good relationships with stakeholders.

4. Compliance and Avoidance of Penalties

– For Citizens: Knowing the laws that apply to you helps ensure compliance and avoids penalties or legal consequences for unintentional violations.

– For Businesses: Regulatory compliance is essential for avoiding fines, sanctions, and other legal repercussions. Businesses that stay legally informed can operate smoothly and maintain their licenses and permits.

The Benefits of Legal Awareness

1. Empowerment and Confidence

– For Citizens: Legal knowledge empowers individuals to stand up for their rights, make informed choices, and navigate legal challenges with confidence.

– For Businesses: Businesses that are legally aware can approach opportunities and challenges with confidence, knowing that they have the legal knowledge to back their decisions.

2.Risk Managemen

-For Citizens: Understanding legal risks allows individuals to take proactive steps to mitigate them, such as securing proper documentation and seeking legal advice when needed.

– For Businesses: Legal awareness helps businesses identify potential legal risks and implement strategies to manage them, reducing the likelihood of costly legal disputes.

3. Ethical Conduct and Social Responsibility

– For Citizens: Legal awareness promotes ethical behavior by encouraging individuals to understand and respect the law. This contributes to a just and orderly society.

– For Businesses: Businesses that operate with legal awareness are more likely to adhere to ethical standards and demonstrate social responsibility, enhancing their reputation and customer trust.

4. Access to Justice

– For Citizens: Being legally informed improves access to justice by enabling individuals to understand their legal options and seek appropriate remedies when needed.

– For Businesses: Businesses that are aware of their legal rights and obligations can better advocate for themselves in legal matters and seek justice when wronged.

Conclusion

Legal awareness is a powerful tool that benefits both citizens and businesses. It enhances protection, informed decision-making, conflict resolution, compliance, and ethical conduct. By staying legally informed, individuals and organizations can navigate the complexities of the legal landscape with confidence and contribute to a fair and just society.

For citizens and businesses alike, the journey to legal awareness starts with education and a commitment to staying informed. Embrace this journey, and let legal knowledge empower you to thrive in every aspect of your life and operations.

THE ART OF PERSUATION IN THE LAWS OF HUMAN CLASS | Abdul Ghaffar Qureshi

by Legalnaija | Sep 4, 2024 | Uncategorized

OPINION OF AUTHOR:

I have successfully dispensed justice to suffering people who wanted justice. I want to expend by looking for more avenues of services in all sectors of legal framework. I believe that holding the essential elements that can lead to the planning of meaningful ways and means to facilitate the learning of human rights as the way of life throughout the world.

“TALENT DERSERVES A CHANCE”

Decriers of human rights – Islamic the ruling classes: Grounded in the Qur’an and Islamic legacy, Islam has time-honored certain inherent universal prerogatives for all people. In light of accelerating muggings on human rights across plentiful nations, the peril confronting personages who victor their universality has heightened. Advocates for human rights increasingly antagonize criminalization and legal accomplishment. They are lay open to to threats, fleshly assaults, and even slaying attempts. As we venerate the 17th anniversary of the UN declaration of human rights defenders, we must contemplate what additional trials can be taken to further buttress human rights and safeguard their victors. Human ignominy represents the innate value contemporary in every discrete. Human rights are grounded on veneration for the dignity and value of each person. Human dignity serves as the initial concept for human rights and the fountainhead from which the perception of human rights emanates. The most notorious provision of the Magna Carta;

Clause 40 of the Magna Carta states: “We will not peddle rights or justice to any person, nor will we deny or suspension them to anyone.”

In the face of this advancement, there is a growing gratitude of gender trepidations evident in reports from Superior Ways, human rights treaty bodies, and testimonials made by states in UN forums and regional human rights bulks. The preliminary action taken by some of these bulks was simply to include a allusion of ‘women’ in a document. Though, as Di Otto has emphasized, this alone “is insufficient to pledge the inseparability of women’s human rights without also make a speech the underlying causes of women’s banishment and segregation.”

There’s merit in considering individuals with prescribed equity—operational in a logical and estimative manner, forming public principles for both citizens’ comportment and officials’ retorts. These criteria serve as point of reference against which acquiescence or deviation can be gauged, rather than relying on flexible and potentially capricious conclusions. This crux establishes the essence of the “Rule of Law.” When indorsed, individuals face a governing bulk that regards them as cogent entities praiseworthy of respect. It unvaryingly applies whatever standards of behavior and assessment it hires. This holds candid and independent assessment, even if the authentic actions embark on fail to meet any pertinent standard of substantive impartiality.

EX MERO MOTU-“of one’s own free will”

The shrewdness necessitating the type of respect showcased in the system of belief of the rule of law isn’t chiefly the sagacity expediting the resolution of scientific puzzles. Instead, it’s the rationality allowing us to determine that carefully worked-out puzzles are meant to be engage in.

Where the regulation of law is advocated, there exists between those in buff and those governed a particular interchange. This communal altercation will undoubtedly prove constructive in achieving certain required objectives for which it obliges as a system. I’m thinking, for case in point, of a number of aspects of communal organization, such as efficiency in supervision and/or providing public amenities, and political steadiness, especially during thought-provoking times. However, Plato’s argument, which I find no goal to question, is the ethical-philosophical contention that, considering the innate worth of individuals, this type of reciprocity surpasses being merely a method for other goals. Consequently, it should be shielded and stimulated whenever feasible, and it should not be readily forfeited, even for the sake of other noteworthy goods.Top of Form

LEGAL ASPECTS:

Section-96(A) Pakistan Penal Code, 1860: ENCITING OT TAKING AWAY OR DETAINING WITH CRIMINAL INTEND A WOMEN: Whoever takes or entices away any women with intend that she may have illicit intercourse with any person, or conceals or detain with that intend any women, shall be punished with imprisonment of either description for a term which may extend to seven years, and shall also be liable to fine.

Article 14 of constitution of Pakistan 1973: This constitutional article ensures that dignity of man and, subject to law, the privacy of home, shall be inviolable.

Article 27 of the constitution of Pakistan 1973: Safeguard against Discrimination against Services:

No citizen otherwise qualified for appointment in the services of Pakistan shall be discriminated against respect of any such appointment on the ground only of race, religion, caste, sex, residence or place of birth.

Nations are tasked with wipe out barriers hindering women’s equal chipping in in social sanctuary programs that link benefits to influences, or crafting benefit chaos that consider such barriers to thwart gender-based incongruities. Additionally, countries must factor in differences in life bated breath between men and women, as these can lead to bigoted practices in benefit division.

For instance, in January, Pakistan appointed Justice Ayesha Malik as the germinal female judge of the Supreme Court of Pakistan.

To end up, human rights and independences apply to every discrete as they stem from the native essence of Homo sapiens, heedlessly of a state’s legislation. Pakistan indorses the rule of law and hallows human rights and fundamental independences in its constitution. With an independent judiciary, the government of Pakistan inductees to uphold its legal and constitutional commitments.Top of Form

IGNORANCE OF LAW IS NO EXCUSE

Abdul Ghaffar Qureshi is the Managing Partner of Qureshi & Qureshi (Barristers, Advocates & Legal consultants). He is Advocate of High Courts of Pakistan and has Completed LLM from BPP University, London. Qureshi 7 Qureshi has been nominated for Global Recognition Awards 2024.

An Appraisal Of The EFCC Act 2004 In Dealing With Financial Crimes In Nigeria – Jonah Uyo – Obong (Part 2)

by Legalnaija | Aug 30, 2024 | Uncategorized

AN APPRAISAL OF THE EFCC ACT 2004 IN DEALING WITH FINANCIAL CRIMES IN NIGERIA – JONAH UYO-OBONG

6. CHALLENGES WITH THE EFFECTIVE ADMINISTRATION OF THE EFCC ACT IN COMBATING FINANCIAL CRIMES

The EFCC in its early days was able to investigate,arrest and prosecute cases of financial crimes especially those involving Politically Exposed Persons (PEPs)[1]. However, previous studies revealed that the EFCC faces a number of challenges in its efforts to achieving its mandate[2]. Some of the challenges include:

a.  Lack of Security of Job of the Chairman:

The lack of job and tenure security of chairpersons of anti-corruption agencies is a major challenge militating against the effective fight against corruption and financial crimes in Nigeria. The provision of Section 2(3) of the EFCC Act provides for the appointment of the Chairman and members of the Commission other than the ex-officio members shall be appointed by the President and the appointment shall be subject to confirmation of the Senate.

However, Section 3 (2) provides that a member of the commission may at any time be removed by the President for inability to discharge the function of his office (whether arising from infirmity of mind or body or any other cause) or for misconduct or if the president is satisfied that it is not in the interest of the commission or the interest of the public that the member should continue in office. The provision of the various Sections of the Act by providing for the appointment of the chairman and other high ranking officers by the President only makes the EFCC an extension of the executive arm of the government[3]. In other words, these members very often carry out the biddings of the President and other persons instrumental to their appointment. This is an obstruction militating against the fight against financial crimes in Nigeria as high ranked officials within the EFCC are at risk of being fired by their employer, or better still by the President. Therefore, the EFCC is usually under pressure to do as dictated by the President to compensate for their jobs.

b.  Abuse of Section 14 of the Act

The Section provides for compounding of offences by the Commission. The Section empowers the Commission to accept such money as it thinks fit exceeding the maximum amount to which that person would have been liable if he had been convicted of that offence. Although this is not the same as a plea bargain, the Commission had applied this section as plea bargain in the case of the former Inspector-General of Police, TafaBalogun in 2005 and Emmanuel Nwude in 2006 by the Federal Republic of Nigeria (FRN) at the instance of the EFCC. Since then, plea bargain has been applied in other cases including FRN v Mrs Cecilia Ibru, FRN v. Lucky Igbinedion, FRN v. John Yusuf Yakubu[4]. Going by the concept of legality, which requires that a thing be provided for expressly in the law, this is desirable especially when it relates to criminal matters, rather than be the product of implication, inherence and/or abstraction, it may be posited that seeing as the phrase ‘plea bargain’ is not used anywhere and that the concept of ‘compounding an offence’ does not include any of the trappings of a trial to wit: the preparation and filing of a charge sheet, an arraignment and the

entering of a plea; but rather is an agreement to give money in exchange for non-prosecution of an offence, there are no statutory bases on which to stand this claim[5].

Nigeria, by virtue of the EFCC Act has legalised the compounding of offences by the EFCC within the purview of the Act; the EFCC represents the Nigerian people as the victims and is also the prosecuting authority which decides not to prosecute but this cannot be said to be plea bargaining, not by any stretch of the imagination, at least not as we understand the definition of the same. Ironically, the EFCC has been doing something else altogether that they do not have authority to do. A cursory look at the provision, one may argue rightly that there is no express or implied mention of plea bargaining under Section 14 (2) of the EFCC Act and as such, what the section envisages is ‘compounding of offences’ which is an act in which a person agrees not to report the occurrence of a crime or not to prosecute an accused in exchange for money or other consideration[6]. The Section does not show the nature and the type of the plea bargain neither does it show the stage of the proceedings at which the bargain may be initiated. There is also no laid down procedure or safeguards for plea bargaining andsuch agreement as envisaged under the EFCC Act does not necessarily culminate in a judgment neither does it lead to conviction nor sentencing.[7]This is a blank cheque and window of opportunity to the officers of EFCC for so much stolen wealth in exchange for secret gratifications.[8]The sum of money which the EFCC is to accept, at its discretion, is not referenced to the amount stolen or embezzled but to the amount of the fine to be imposed[9]. It is submitted that the entire provision made plea bargain an almost primordial instinct of the prosecutorial soul and gave the EFCC the prosecutorial power to manipulate cases and justice[10]. This confirms Dervan’s statement that ‘the history of plea bargaining is the history of prosecutors gaining increased leverage to bargain’.[11]

EFCC has been applying the concept of plea bargaining to release many corrupt criminals, including corporate criminals, who steal corporations’ funds and should have been in jail as deterrence to others. The EFCC has applied this procedure in very high profile cases, beginning with a former inspector-general of police, Mr TafaBalogun. The Defendant was arraigned on a 70-count charge of corruption on a massive scale, which were reduced to an 8-count charge of money laundering through plea bargaining. He was convicted and jailed for only 6 months. With regard to economic crimes involving companies, the procedure was adopted by the EFCC in the trial of Emmanuel Nwude and NzeribeOkoli who were charged for defrauding a Brazilian bank. Further, in the case of Federal Republic of Nigeria (FRN) v Mrs Cecilia Ibru, the Defendant, a former managing director of Oceanic bank defrauded the bank of large sums of money and was arraigned for an offence contrary to section 15 (1) of the Failed Bank (Recovery of Debts) and Financial Malpractices in Banks and punishable under section 16(1)(a) of the same Act. The punishment stipulated by the law is imprisonment for a term not exceeding five years without the option of fine. The defendant accepted to forfeit the assets worth over N150 billion which she fraudulently acquired. Consequently, she was sentenced to six months imprisonment without an option of fine[12].

The EFCC also applied the concept to the cases of DSP Alamieyeseigha who was arraigned on corruption charges and the Governor of Edo State, Lucky Igbinedion who was charged with stealing billions of naira from the public treasury on the 28^th December 2018. The latter was convicted and sentenced to pay an infinitesimal fine of N3.5million. He was also to serve twelve years imprisonment on a six count charge of corruptly enriching himself while he was Governor. However, the sentence was to run concurrently and because he had remained in custody for two years, he was released few days after, under plea bargain agreement.[13]Thus, the concept has been criticized since it seems to be practiced to favour the rich and elite criminals who loot, launder and embezzle public funds for their selfish gains.[14]

c.  Low Chance of Conviction for Politically Exposed Persons and Lack of Autonomy of the Commission:

This has been considered as the major significant challenge that limits effective performance of EFCC. In essence, cases involving politicians such as former governors and ministers are being deliberately frustrated. For instance, out of 31 former governors prosecuted since 1999, only three, Joshua Dariye, Jolly Nyame and Uzor Oji Kalu were recently convicted and jailed. This may be attributed to lack of adequate autonomy by EFCC to effectively perform its responsibilities. Hence, there is tendency for the Chairman of the Commission to be reluctant to continue with investigations against the president that appointed him or his associates belonging to ruling party.[15]

d.  Structure of the Commission:

This makes the Commission answerable to the presidency; the security of the Chairman’s tenure in office, agency’s budget and funding which is subject to Senate and Presidential approval[16]. Evidence to this is that when the list of 135 corrupt candidates whom EFCC presented and disqualified them from contesting 2007 elections, the list was discredited and considered as an effort to hurt the political opponents of the then president.

e. Organizational Deficiency:

This is considered among the factors that limit effective performance of EFCC. For instance, 2013 and 2015 EFCC Annual report revealed that lack of training of officers is another challenge to effectively perform its mandate. However, EFCC in 2013 was able to train its operative staff in 17 training programs. While in 2015, 84 of the staff of the EFCC were trained abroad, mostly by non-governmental organizations.[17]

f. Inadequate Funding:

This has also remained a critical challenge to EFCC operation, thus only 54.17% of the approved 2018 budget of EFCC was released to the commission, while only 40.06% of capital expenditure was released.[18]

g. Over-stretching of Constitutional Immunity by the Commission:

Section 308 of the 1999 Constitution of the Federal Republic of Nigeria as amended, guarantees immunity from civil and criminal proceeding being instituted and continued against the president, vice president, governor and deputy governor during his period of office. The Commission have stretched the immunity provision to a ridiculous extent by refusing and neglecting to investigate this category of public officers for possible prosecution on the expiration of their tenure in office.[19] As rightly held in the case of Fawehinmi v IGP, Section 308 of the Constitution does not shield or protect any of the persons named therein from investigation.[20] The EFCC ought to have investigated Abdullahi Ganduje, the former governor of Kano State over bribery allegations who was conspicuously captured on camera receiving bribes in dollars, and was widely reported. Furthermore, in a situation where immunity is constitutionally guaranteed, it becomes difficult for the Commission to act before it becomes too late.[21]

7. COMPARISON BETWEEN NIGERIA, FRANCE AND IRELAND

According to the Global Organized Crime Index, the countries with the lowest rates of money laundering are Estonia, France, Iceland, and Ireland. Even though these countries have relatively low criminality rates, it is important to recognize that not having a high risk rating does not mean that money laundering issues are completely unaffected. Each country faces a distinct set of challenges, ranging from tax fraud to financial crimes enabled by cyberspace, highlighting the complex fight against illicit financial activities.[22]

FRANCE:  France is a civil law country i.e a non-common law country. It has implemented rigorous measures to combat money laundering and terrorist financing. Despite these efforts, criminal organizations exploit avenues such as the betting and gambling industry, while white-collar crimes serve to recover funds lost to tax evasion. In response to the rise of online criminal networks, France is actively working to swiftly regulate these emerging activities. The country is recognized for its resilience against money laundering, continually enhancing its capabilities through ongoing measures. France has set out a number of impactful reforms to reinforce anti-money laundering practices over the past ten years. These include the creation of dedicated institutions, such as the Central Office for Fight Against Corruption and Financial and Tax Offences (OCLCIFF), the French Anti-corruption Agency (AFA) and the National Financial Prosecutor’s office (PNF). The latter was created in 2013 to streamline the handling of court cases related to financial crime in France and developing cross-border cooperation with partner international authorities. Since 2014, the PNF has handed back over 10 billion Euros to the public purse. FAFT also added that France takes on an active role in proposing designations to the EU and UN Sanctions List.[23]

The legislation that prohibits financial crime is the French Criminal Code and the Monetary and Financial Code[24]. The authority that has the power to prosecute, investigate and enforce cases of money laundering, terrorist financing and breach of financial/trade sanctions is the Ministry of Finance Anti-money Laundering Unit (Traitement du Renseignement et Action Contre les Circuits Financiers Clandestins) (TRACFIN)[25]. This body has the same function as the EFCC however whereas, the power to investigate and prosecute financial crimes is bestowed on the Commission and derived from the EFCC Act 2004, the power to investigate lies with TRACFIN; a unit under the French Ministry of Finance and is derived both from the Criminal Code[26] and the Monetary and Financial Code. While the power to proffer a criminal charge is referred to the Public Prosecutor if the known facts may constitute a criminal offence that is punishable by more than one year imprisonment or there is evidence of the offence of financing terrorism.[27]The Public Prosecutor may then decide to open a criminal investigation and in complex cases, appoint an Investigating Magistrate. In Nigeria, the legal and prosecuting unit of the EFCC is responsible for prosecuting offences laid down in the Act and other legislations bothering on economic and financial crimes.[28]The Act also mandates the Commission to coordinate not just the laws or regulations relating to economic and financial crimes, but also all existing economic and financial crimes investigating units in Nigeria.[29]The Commission also has a responsibility to maintain a liaison with the office of the Attorney General of the Federation.[30]

IRELAND: Ireland is a common law country. In Ireland, fraud including corporate fraud is governed principally by the Criminal Justice (Theft and Fraud Offences) Act 2001 and the Criminal Justice (Theft and Fraud Offences) (Amendment) Act 2021[31]. Specific offences relating to Corporate Fraud include: Making a gain or loss by deception, obtaining services by deception, unlawful use of a computer, false accounting, suppression of documents, forgery, fraud affecting EU financial interest, conspiracy to defraud and fraudulent trading. The power to investigate fraud as well as bribery and corruption lies with the Garda National Economic Crime Bureau (GNECB), a specialist division of An Garda Siochana (AGS) (Irish Police Force) that is tasked with investigating fraudulent or economic crimes of a more serious and complex nature[32]. In addition, the Office of the Director of Corporate Enforcement (ODCE) investigates offences under the Companies Act 2014. The European Anti-Fraud Office (OLAF) can investigate potential fraud in Ireland which may affect the EU financial interests. While the DPP is responsible for prosecuting fraud offences in Ireland based on consideration of the file prepared by AGS following investigations[33]. It must be noted that there are no formal non-trial resolution mechanisms in place, for example, deferred or non-prosecution agreements. There is no formal mechanism for plea bargaining. However, in practice, an informal agreement with the prosecution can be made whereby an accused can agree to plead guilty to certain charges and prosecution can agree to withdraw or modify other charges. The decision to engage in these discussions is entirely at the discretion of the DPP who will require good reasons in fact or law for any withdrawal or modification of charges facing an accused[34].

In Nigeria, the EFCC Act 2004 provides for compounding of offences which allows the Commission, subject to Section 174 of the Constitution, to accept sums of money as it thinks fit exceeding the maximum amount to which that person would have been liable if he had been convicted of that offence[35]. This money is paid into the Consolidated Revenue Fund of the Federation[36]. In Ireland, there is no provision for plea bargain but in practice an informal agreement which presupposes compounding of an offence, is obtainable. However, in Nigeria, in practice, the Commission practices plea bargain in setting free accused persons as against the provision of the EFCC Act on compounding of offences. Another distinction is that, under the law of Ireland, it is at the entire discretion of the DPP to compound an offence while in Nigeria, the provision to compound an offence under the EFCC Act 2004, is subject to the power of the Attorney General to institute, take over or discontinue a criminal proceeding against any person in court. The Commission is still solely responsible for compounding an offence under the Act but such power is subject to Section 174 of the 1999 Constitution.

8. CONCLUSION AND RECOMMENDATION

Financial crime has bedevilled Nigeria for decades with each administration deploying their arsenals towards fighting corruption, economic and financial crimes. Nigeria has lost billions if not trillions of naira to financial crimes. In April 2024, the former CBN governor was arraigned for offences bordering on fraud to the tune of N80.2 billion. In May 2024, two executives of Binance Nig. Ltd (a cryptocurrency trading platform) were arraigned before the Federal High Court, Abuja with the Federal Government alleging tax evasion and non-compliance with the directive of the government to stop operations within Nigeria due to failure to obtain the necessary licenses for operation. The EFCC being an establishment of the EFCC Act and also an offshoot of the executive arm of government has become a partisan tool in the hands of the executives; this among other limitations has forestalled the fight against financial crimes as criminals, both in the private and public sector, are ever evolving in their ideas, constantly inventing new ways to defraud and loot money. Therefore, it is recommended that:

a. Section 35 (3) of the EFCC Act which allows the Commission to accept monetary gifts, lands and other properties should be expunged. This is based on the fact that as the Financial Intelligence Unit of the country with a statutory responsibility to investigate all financial crimes and also enforce the provisions of all economic and financial crimes laws, it will be out of place for the same Commission to accept gifts especially from politically exposed persons. This is to ensure transparency in its resolve to fight financial crimes.

b. Section 14 of the EFCC Act expressly provides for compounding of offences and not plea bargain. Therefore, based on the principle of legality, the Commission should desist from applying Section 14 of the EFCC Act as plea bargain to release accused persons. Alternatively, amend the Section to expressly provide for plea bargain; stating the stage at which it can be applied as well as the circumstances wherein the concept can be invoked.

c. Section 2 (a) (ii) of the EFCC Act should be reviewed to allow for the accommodation of career trained EFCC members with requisite knowledge or expertise in financial crimes intelligence as the qualification to the office of the Chairman of the Commission.

d. Section 3 (2) of the Act should be reviewed to allow the removal of the Chairman or any member of the Commission on the recommendation of the President subject to the confirmation of the Senate. This is to avoid leaving the removal of any member of the Commission especially the Chairman at the whims and caprices of the President whose reason for removal maybe tainted with bias.

e. The Commission should be supported with adequate funding and independence to function optimally in its responsibility in fight financial crimes as external influences especially from politically exposed persons often hampers its efforts in fighting financial crimes.

f. Section 25 (d) of the Act which provides for further provisions as to forfeiture of all real property which is used or intended to be used in any manner or part to commit, or facilitate the commission of an offence under the Act, should be reviewed in cases where the bonafide owner of a property or title in any parcel of land, other than the accused, who had no knowledge that the property was used to commit an offence under the Act or reasonably believed that the property was acquired for a good purpose, should be exempted. Properties subject to forfeiture should be those owned by the accused purchased from proceeds of the crime committed by the accused.

g. Nigeria should take a cue from Ireland where the Ireland Police has a special division under it that investigates complex financial crimes. The responsibility to investigate financial crimes should be extended to the Nigerian Police Force by the creation of a special division or unit under the Police solely to investigate financial crimes. Reports gathered from this special division will be sent to the EFCC. This can assist the Commission in fast tracking investigations.

h. In a situation where immunity is constitutionally guaranteed, such immunity should only extend to government officials to protect them against civil actions only for official acts done in the discharge of statutory duties and no immunity should be accorded to any government official who is indicted for financial crimes while in office. Such government official should be prosecuted upon due and proper investigation.

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Ahmed, ‘Economic and Financial Crimes Commission (EFCC) and Anti-Corruption Crusade in Nigeria: Success and Challenges’ [2021] 4 GIJMSS <> accessed 5 June 2024

EFCC, History of EFCC, <http://www. efcc.gov.ng/efcc/about-us-new/history-of-efcc> accessed 6 June 2024

KayodeOladele, ‘The Legal Basis For Relevance, Role and Existence of EFCC – A Rejoinder to Agbakoba’ (2023) <https://www.thecable.ng/the-legal-basis-for-relevance-role-and-existence-of-efcc-a-rejoinder-to-agbakoba/amp/> accessed 9 June 2024

Oyewale, ‘EFCC secures 3,175 convictions, recovers N156 billion in one year’ Premium Times (2023)<https://www.premiumtimes.ng> accessed 6 July 2024

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Onipe Adabenege Yahaya, Impact of Financial Crimes on the Nigerian Economy, <https://www.researchgate.net/publication/358769842> accessed 26 June 2024

Black’s Law Dictionary (9^thedn, Thomas Reuters, St Paul MN 2009)

Emilia Onyema et al, The Economic and Financial Crimes Commission and the Politics of (in) Effective Implementation of Nigeria’s Anti-corruption Policy, (2018) <https://eprints.soas.ac.uk/31283> accessed 1 July 2024

Dennis Erezi, Court restrains EFCC from arresting, prosecuting Yahaya Bello, The Guardian<https://guardian.ng/court-restrains-efcc-from-arresting-prosecuting-yahaya-bello/> accessed 6 July 2024

KayodeOyero, Yahaya Bello: EFCC confirms receipt of $760,000 from Abuja American School, Channelshttps://www.google.com/amp/s/www.channelstv.com/2024/04/27/yahaya-bello-efcc-confirms-receipt-of-760000-from-abuja-american-school/amp/  accessed 6 July 2024

Kingsley Nwezeh, EFCC Probing 50 Bank Accounts Linked To Betta Edu’s Stashed Funds Case, Recovers N30bn, Arise News<https://www.arise.tv/efcc-probing-50-bank-accounts-linked-to-betta-edus-stashed-funds-case-recovers-n30bn/> accessed 6 July 2024

Ameh Ejekwonyilo, Betta Edu SadiyaFarouq, Others Not Yet Cleared of Alleged Fraud-EFCC, Premium Times <https://premiumtimesng.com/news/top-news/686059-betta-edu-sadiya-farouq-others-not-yet-cleared-of-alleged-fraud-efcc.html> accessed 6 July 2024

Human Rights Watch, ‘Corruption on Trial? The record of Nigeria’s EFCC’ New York: Human Right Watch <https://www.hrw.org/reports/2011/08/25/corruption-trial-0>  accessed 7 June 2024

Sowunmi F. A, Adesola M. A. &Salako M. A., An Appraisal of the Performance of the Economic and Financial Crimes Commission in Nigeria, International Journal of Offender Therapy and Comparative Criminology, 1047-69

Samson OjodomoOnuche, Examination of the Challenges on the Fight Against Corruption in Nigeria, SSRN Electronic Journal <https://www.researchgate.net/publication/344836316>  accessed  26 June 2024

Nicholas IoremberIorun, Rachel NwasoluImbwaseh and Matthew Atonko, ‘Plea Bargaining as Economic Crimes Involving Companies in Nigeria: A Palliative to the Festering Wounds of Corporate Stakeholders Without Cure’  Benue State University Law  Journal 2020  71

Tope Adebayo LLP, ‘The Legality of the Use of Plea Bargain in the Nigerian Criminal Justice System’<https://www.topeadebayolp.com>  accessed 13 June 2024

Ted C Eze and EzeAmaka G, ‘A Critical Appraisal of the Concept of Plea Bargaining in Criminal Justice Delivery in Nigeria’ (2015) Global Journal of Politics and Law Research <https://www.eajournals.org> accessed 26 June 2024

Theo Bourgery-Gonse, ‘France Effective in Combatting Financial Crime, though Some Critical Gaps Remain’ (2022) <https://www.euractiv.com/section/economy-jobs/news/france-effective-in-combatting-financial-crime-though-some-critical-gaps-remain/> accessed 4 July 2024

Antoine Kirry, and Alexandre Bisch, Debevoise& Plimpton LLP, Financial Crime in France: Overview  (2022) <hhtps://www.debevoise.com> accessed 3 July 2024

Deirdre O’Mahony et al, ‘Financial Crime in Ireland: Overview’<https://content.next.westlaw.com/practical-law/document/I5635ac588dec11ee8921fbef1a541940/Financial-Crime-in-Ireland-Overview?viewType=FullText&transitionType=Default&contextData=(sc.Default)&bhcp=1> accessed 4 July 2024

[1]Human Rights Watch, ‘Corruption on Trial? The record of Nigeria’s EFCC’ New York: Human Right Watch <https://www.hrw.org/reports/2011/08/25/corruption-trial-0>  accessed 7 June 2024

[2]Sowunmi F. A, Adesola M. A. & Salako M. A., An Appraisal of the Performance of the Economic and Financial Crimes Commission in Nigeria, International Journal of Offender Therapy and Comparative Criminology, 1047-69

[3]Samson OjodomoOnuche, Examination of the Challenges on the Fight Against Corruption in Nigeria, SSRN Electronic Journal <https://www.researchgate.net/publication/344836316>  accessed 26 June 2024

[4]Nicholas IoremberIorun, Rachel NwasoluImbwaseh and Matthew Atonko, Plea Bargaining as Economic Crimes Involving Companies in Nigeria: A Palliative to the Festering Wounds of Corporate Stakeholders Without Cure, Benue State University Law  Journal 2020  71

[5]Tope Adebayo LLP, The Legality of the Use of Plea Bargain in the Nigerian Criminal Justice System  <https://www.topeadebayolp.com>  accessed 13 June 2024

[6]ibid

[7]Nicholas IoremberIorun, Rachel Nwasolu Imbwaseh and Matthew Atonko, Plea Bargaining as Economic Crimes Involving Companies in Nigeria: A Palliative to the Festering Wounds of Corporate Stakeholders Without Cure, Benue State University Law  Journal 2020  71

[8]Ted C Eze and EzeAmaka G, ‘A Critical Appraisal of the Concept of Plea Bargaining in Criminal Justice Delivery in Nigeria’ (2015) Global Journal of Politics and Law Research <https://www.eajournals.org> accessed 26 June 2024

[9]Nicholas Iorember Iorun, Rachel Nwasolu Imbwasehand and Matthew Atonko, Plea Bargaining as Economic Crimes Involving Companies in Nigeria: A Palliative to the Festering Wounds of Corporate Stakeholders Without Cure, Benue State University Law  Journal 2020  73

[10]ibid

[11]Lucian E. Dervan. ‘Plea Bargaining’s Survival: Financial Plea Bargaining, a Continued Triumph in a Post-Enron World’(2007) Oklahoma Law Review, 451-488

[12]Nicholas IoremberIorun, Rachel Nwasolu Imbwasehand Matthew Atonko, Plea Bargaining as Economic Crimes Involving Companies in Nigeria: A Palliative to the Festering Wounds of Corporate Stakeholders Without Cure, Benue State University Law  Journal 2020  74

[13]Ted C Eze and EzeAmaka G, ‘A Critical Appraisal of the Concept of Plea Bargaining in Criminal Justice Delivery in Nigeria’ (2015) Global Journal of Politics and Law Research <https://www.eajournals.org> accessed 26 June 2024

[14]Nicholas IoremberIorun, Rachel Nwasolu Imbwasehand Matthew Atonko, Plea Bargaining as Economic Crimes Involving Companies in Nigeria: A Palliative to the Festering Wounds of Corporate Stakeholders Without Cure, Benue State University Law  Journal 2020  74

[15]Onyema et al, ‘The Economic and Financial Crimes Commission and the Politics of Effective Implementation of Nigeria’s Anti-corruption Policy’ ACE SOAS Paper No. 7/2018 <https://ace.soas.ac.uk> 1 July 2024

[16]Section 35 (1)(2) EFCC Act 2004

[17]Onyema et al, ‘The Economic and Financial Crimes Commission and the Politics of Effective Implementation of Nigeria’s Anti-corruption Policy’ ACE SOAS Paper No. 7/2018 <https://ace.soas.ac.uk> 1 July 2024

[18]Magu Ibrahim, Magu List Challenges, Achievements as he Defends Budget, <https://www.prnigeria.com> accessed 1 July 2024

[19]Micah Christian Sample, ‘Institutional Architecture in the Fight Against Corruption in Nigeria: A Critique’ (LL.B thesis, University of Calabar 2019)

[20]ibid

[21]Ibid 53

[22]Sanction Scanner,‘Anti Money-Laundering-5 Countries with the Lowest Money Laundering Risks’ <https://www.sanctionscanner.com/blog/5-countries-with-the-lowest-money-laundering-risks-831> accessed 3 July 2024

[23] Theo Bourgery-Gonse, France Effective in Combatting Financial Crime, though Some Critical Gaps Remain (2022) <https://www.euractiv.com/section/economy-jobs/news/france-effective-in-combatting-financial-crime-though-some-critical-gaps-remain/> accessed 4 July 2024

[24]Antoine Kirry, and Alexandre Bisch, Debevoise& Plimpton LLP, Financial Crime in France: Overview  (2022) <hhtps://www.debevoise.com>

[25]ibid

[26]Code De Procedure Penale (CCP)

[27]Article L561-30-1, Monetary and Financial Code

[28]Section 13 (2), 7 (2) (f) EFCC Act 2004

[29]Section 6 (n) ibid

[30]Section 6 (o) ibid

[31]Deirdre O’Mahony et al, Financial Crime in Ireland: Overview, (2023) <https://content.next.westlaw.com/practical-law/document/I5635ac588dec11ee8921fbef1a541940/Financial-Crime-in-Ireland-Overview?viewType=FullText&transitionType=Default&contextData=(sc.Default)&bhcp=1> accessed 4 July 2024

[32]ibid

[33]Deirdre O’Mahony et al, Financial Crime in Ireland: Overview, (2023) <https://content.next.westlaw.com/practical-law/document/I5635ac588dec11ee8921fbef1a541940/Financial-Crime-in-Ireland-Overview?viewType=FullText&transitionType=Default&contextData=(sc.Default)&bhcp=1> accessed 4 July 2024

[34]ibid

[35]Section 14 (2) EFCC Act 2004

[36]Section 14 (3) ibid