The Economic Implications of Money Laundering in Nigeria

Abstract The effect of money laundering in frustrating legitimate business, and in corrupting the financial and socio political system should not be taken for granted. It is against this backdrop that this study seeks to examine the economic implication of money laundering in Nigeria. The accidental sampling method was used in the selection of 635 persons out of which 624 representing 98.27 % of the sampled persons completely filled and returned the questionnaires administered to them. Data collected were analyzed using the simple percentages method, the first hypothesis was tested using the chi-square test and it was found that money laundering do have significant effect on Nigeria’s economy with f-ratio of 476.163> f-critical of 12.592 at 0.05 level of significance with 6 degree of freedom, thus, the null hypothesis was rejected and the alternative was accepted. The ANOVA test on the second hypothesis confirms that Anti Money Laundering policies in Nigeria has not significantly reduce money laundering in Nigeria with f-ratio of 2.685 < f-critical of 5.987 at 0.05 level of significance with 1 to 6 degree of freedom, thus, the null hypothesis was accepted. The study recommends more effective coordination of all institutions on the fight against money laundering by the EFCC, and a full, effective and efficient investigation of corruption reports by the ICPC