Nigeria is most fraudulent country in Africa – KPMG

President Goodluck Jonathan in prayers

The value and number of fraud cases decreased between 2011 and 2012.

Despite the claim by President Goodluck Jonathan that his administration has done better than previous ones in the fight against corruption, Nigeria still has the highest number of fraud cases in Africa, a global audit firm has said.

According to KPMG, a global audit and financial advisory firm, Nigeria accounted for the highest number of fraud cases on the continent in the first half of 2012. The cost of fraud in the country during the period was put at N225 billion ($1.5 billion).

KPMG, in its second Africa Fraud Barometer result, released on Wednesday, also said Nigeria, Kenya, Zimbabwe and South Africa accounted for 74 per cent of all fraud cases in Africa in the same period.

The report stated that the number of fraud cases in Nigeria has been worsened by fraud and corruption in the oil sector. It identified the common forms of fraud in the country as “bribes in the private and public sector, misappropriation, and contract inflation.”

Government officials and top management staff in private companies were described as the worst offenders leaving companies shareholders and the general public to bear the brunt of their profligacy.

The report further blames the long and tedious legal system in the country of doing next to nothing in bringing perpetrators to book.

“The general belief in Nigeria is that the legal system is not effective enough,” says Olumide Olayinka, Head of Risk Consulting of KPMG Nigeria.

“There have been a lot of cases involving the banking and the Oil &Gas sectors or government that lead to prosecution. The current noticeable trend is that many cases either end with a plea bargain or are simply closed without any conviction,” he added.

Data for the fraud barometer are aggregated from news articles and reviewing fraud cases from designated databases. Though the amount of fraud in the country is grim, the report observes a decline in the cases of fraud from 520 in the second half of 2011 to 503 cases in the first half of 2012 in the continent.

During the same period, the value of fraud decreased from N495 billion (US$3.3 billion) to N300 billion (US$ 2 billion).

Mr. Jonathan had during the presidential media chat on Sunday said his administration was pro-actively fighting and winning the war on corruption. He said he believed had done better than his predecessors in fighting corruption in the country.


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  • Mohammed

    mpitikwelu_na_Ugwu_Awusa and akpos1, Forward On To Biafra Peoples Republic of SS and SE!!! I dey laf oooooo!

  • Adeojo AA

    That corruption or fraudulent practice is rife doesnt take away the fact that the administration is tryin to tackle it. we for forget subsidy thieves , pension fund reform, and ribadu report…meant to fix these.

  • Eddy

    Did you
    read the first sentence at all? It clearly states that fraud decreased between 2011 and 2012. This is in no way saying that we are doing well. But at least, the trend is in decline. It also means that with the right attitude an conditions, inroads into solving our problem can be made. The Boko Haram people opened a different and hitherto unknown front in the Nigerian polity. The fight on them has wasted
    valuable energy. As we also know, the cabal is almighty. Fighting on too many fronts would stretch
    anyone quite apart from the cost in political goodwill. Some commentators have argued as if we are still in a military dictatorship, where one man could wake up one day with a dream, and impose it on us all. Indeed it is for this same reason that the old generals do not make good democrats.

  • akpos1

    The main reason why the economy of continent Nigeria is not working is simple. Scientific research carried out reduces the reasons largely to the answers to the 2 simple questions below:

    1. In which of the following ways do the Northern countries in the continent of Nigeria contribute
    to the continent?

    a) Education
    b) Scientific innovation
    c) Sports
    d) Female football
    e) Women Beach volleyball
    f) Mineral resources
    g) Human Capital Resource
    h) Music
    i) Comedy
    j) Nollywood film production
    k) None of the above

    ANSWER = (k) None of the above

    2. In which of the following sectors of the economy of Continent Nigeria is the Northern countries most active?

    a) Terrorism
    b) Street begging
    c) Domestic Security
    d) Corruption
    e) Legislative terrorism
    f) Under pants plane bombing
    g) Suicide bombing
    h) All of the above
    i) None of the above

    ANSWER = (h) All of the above

    2. In which of the following countries of continent Nigeria will the citizens not protest several years of bombings & killings of people in Churches & leisure spots but go on to protest an internet film?

    a) Oduduwa Republic
    b) United States of the SS & SE Republic
    c) Alimajiri Republic
    d) Biafra Republic
    e) Opobo Kingdom/Republic
    f) Benin Kingdom/Republic

    ANSWER = (c)

    So, you can see why there is corruption. Close to half of the entire population of the continent, i.e., the countries of the North, are non productive people. They have less or none of everything good in the continent e.g. professionals, sportsmen & women, comedians, artists, musicians, academicians, just name it.

    On the contrary, they have everything that is bad- e.g., suicide bombers, legislators with dollar cash vault beneath their caps, church worshiper killers, beggars, cattle killers, village arsonists, illiterates etc. They are too much of a burden & have been for too long.

    The SS cannot continue to give them & their slaves from the West any more lifeline via monthly allocation from our oil. PERIOD.

    Long live the Ogoni Republic
    Long live the United States of the SS & SE

    • segun

      akpos1 and mpitikwelu_na_Ugwu_Awusa,

      I am interested in this from what the Biafra President-Chinua Achebe said in his book of lies. Remember that part where the “Igbo leaders were the ones that want unity, one united Nigeria” and all those lies he told in his book. And remember that you all came pontificating, puffing and telling the world how all these are true? Okay, how do you take those lies, that stupid claim about the Igbo leaders being the ONLY ones that wanted a united Nigeria and your tribal language and practices here? Look I am not saying you do not have a right to call a whole people SLAVES. You can do that. It is your right and it is being documented for we know where this is coming from. Do not worry. The Premiumtimes you even called YORUBA PAPER, HAUSA PAPER will even allow you to do that. But we will always call your attention to how you ridiculously contradict yourselves all over the place. President Achebe of the Unitary Biafra Republic of SS and SE said the Igbo leaders are the only BIG LOVERS of Nigerian unity, and yet we have these tribal things which contradict your President’s (president Achebe) claims about unity. How do you reconcile them? And you get angry and abuse people all over the place when you are called to pay attention to the the lack of reason in your thought. I am just asking you to be consistent-President Achebe’s(of Biafra Republic of SS and SE) book of lies cannot make a claim about Igbo leaders as the “defender” of “unity” and you contradict that and you do not want us to point that out anytime we have the chance. You Cant eat your cake and have it. The only way to reconcile this is to let you see that even when President Achebe of the Biafra Republic of SS and SE put ice cream and body perfume, and body cream on your village and clan tribalism, your practices show that consistently since per-independence Nigeria you were, you did not and can never, and will never outlive a village and clannishness. And note that we are only looking at what you say and thrwoing your contradictions at your face. Nothing more than that. However, I do not think you should stop. Please continue. We need ALL these for documentation and we all will be reminded at the appropriate time.

  • Mpitikwelu_na_Ugwu_Awusa

    Thanks KPMG. The report made it clear that corruption has actually reduced between 2011 to 2012. Congrats Mr President. Babangida institutionalized corruption in Nigeria while Abacha took it to armed robbery level. We are gradually wining the war after decades of corrupt military dictatorships.

  • Easy

    Segun, why be a pra*t all your life? Everything you have
    said here is a fabrication. While it shows that you have got a fertile
    imagination, it also shows the kind of tribal mor*ons that inhabit this space
    called Nigeria. Simply put, you have gone away with the fairies.

  • Bebeji

    What the report is simply saying is that billions of naira have been wasted through poor planning,inadequate competition,sudstandard contract management and oversight,lax accountability and subpar performance or outright misconduct by some contractors and federal employees.Both the executive and the legislature seem to have lost effective control of the public purse.It is justified to conclude that the report is an accurate description of the existing state of affairs.

  • Thank God these issues have been brought for us to see. May God help our president and our Nation overcome Corruption. In Jesus name Amen!