Impact of Fraud and Financial Crimes on the Growth and Development of the Nigerian Economy

Abstract

This study investigated the impact of fraud and financial crimes on the growth and development of the Nigerian economy. Only secondary sources were used to acquire data for the study which was sourced from the Central bank of Nigeria Statistical Bulletin (2022) and CBN Annual Reports of various editions. The data obtained for the study was estimated using Ordinary Least Squares; pre-estimation tests which include among others unit root test and normality test was conducted on the Time-series data, also, post-estimation tests such as heteroscedasticity test and serial correlation test was also conducted on the estimation results. Findings from the research estimations revealed that; fraud and financial crimes have significant impact on the economic growth rate of Nigeria but have no effect on inflation. As a result, the research recommended the strengthening of institutional frameworks. Increase the capacity, independence, and effectiveness of institutions charged with combating fraud and financial crime, such as the Economic and Financial Crimes Commission and other relevant organizations; increase transparency and accountability. Increase transparency and accountability in the public and private sectors by implementing measures such as financial report publication, beneficial ownership disclosure, and whistleblower protection procedures.