The Effectiveness of Anti-Money Laundering Enforcement in Nigeria: An Empirical Assessment of EFCC and NFIU Activities

Money laundering remains a critical threat to Nigeria's financial system integrity, enabling corruption proceeds, drug trafficking revenues, and other illicit funds to enter the legitimate economy. The EFCC and the Nigerian Financial Intelligence Unit serve as the primary institutional actors in anti-money laundering enforcement, operating under the Money Laundering (Prevention and Prohibition) Act 2022. This research empirically assesses the effectiveness of AML enforcement activities undertaken by these bodies between 2018 and 2024, utilising a mixed-methods analytical framework. Quantitative analysis was conducted on published EFCC prosecution statistics, conviction rates, and asset recovery data. Qualitative data was gathered through interviews with EFCC senior investigators, NFIU analysts, compliance officers at Tier 2 banks, and international AML technical assistance coordinators. Secondary sources include FATF Mutual Evaluation Reports on Nigeria, GIABA assessments, and academic AML effectiveness literature. The study develops an original AML effectiveness measurement framework adapted from the FATF Immediate Outcomes methodology and applies it systematically to Nigerian institutional data. Findings reveal significant disparities between formal legal framework quality and operational enforcement effectiveness, with conviction rates and asset recovery performance falling significantly below international benchmarks. The research contributes original empirical evidence to the AML effectiveness literature and recommends targeted institutional capacity investments based on identified effectiveness gaps. Keywords: anti-money laundering, EFCC, NFIU, enforcement effectiveness, financial crime.