CONTRIBUTOR: FAVOUR SOMTO NWACHUKWU
Introduction
Money laundering remains a persistent threat to the integrity of Nigeria’s financial system, as it facilitates corruption, terrorism financing, and other economic crimes. Although regulatory oversight and institutional enforcement have improved in recent years, insiders such as employees, consultants, and other stakeholders now play an increasingly significant role in exposing illicit financial activities.
Consequently, whistleblowing has emerged as an important, though underutilised, mechanism within Nigeria’s anti-money laundering framework. This article examines the legal basis for whistleblowing in Nigeria, the protections available to whistleblowers, the risks they face, and the practical effectiveness of whistleblowing as a tool for combating money laundering.
Definition
A single comprehensive statute does not govern Nigeria’s whistleblowing regime. Rather, it derives from a combination of policies, sector-specific regulations, and general legal principles.
The Organisation for Economic Co-operation and Development (OECD) defines a whistleblower as a person who reports suspicions of bribery involving public officials to law enforcement authorities, an employee who reports such suspicions internally within an organisation, or a third party who reports such misconduct to law enforcement agencies or the media.[1]
Whistleblowers are individuals who disclose information about illegal, unlawful, or public-interest misconduct they encounter, particularly in the course of their duties, to prevent such conduct and promote accountability.[2]
Legal Framework for Whistleblower Protection in Nigeria
Nigeria’s whistleblowing framework remains fragmented, as the country lacks a single, coherent, and comprehensive statute governing whistleblower protection. Despite several legislative attempts to establish a dedicated legal regime, particularly through the Whistleblower Protection Bills of 2008, 2011, 2015, and 2019, none have become enforceable law. Although the National Assembly passed these Bills, they did not take effect because they did not receive presidential assent.
Nevertheless, certain provisions in existing legislation provide direct and indirect protection for whistleblowers. Prominent among these enactments are the following:
- Nigerian Constitution
The Constitution of the Federal Republic of Nigeria 1999 (as amended) guarantees the fundamental right to freedom of expression. However, this right has not yet crystallised into a comprehensive whistleblower protection regime. Section 39(1) of the Constitution provides that:
“Every person shall be entitled to freedom of expression, including freedom to hold opinions and to receive and impart ideas and information without interference.”[3]
However, section 39(3) of the Constitution qualifies this right by providing that:
“Nothing in this section shall invalidate any law that is reasonably justifiable in a democratic society—
(a) for the purpose of preventing the disclosure of information received in confidence, maintaining the authority and independence of courts, or regulating telephony, wireless broadcasting, television, or the exhibition of cinematographic films.”
- Freedom of Information Act of 2011
The Freedom of Information Act 2011 constitutes one of the principal legal instruments supporting whistleblower protection in Nigeria, particularly within the public sector.
The Act protects public officers and persons acting on behalf of public institutions from civil or criminal liability arising from disclosures made pursuant to its provisions, notwithstanding that such disclosures may otherwise contravene the Criminal Code, Penal Code, Official Secrets Act, or any other applicable law.[4] However, the scope of the Act is limited to the public sector and does not extend to private entities.
Section 27 of the Freedom of Information Act 2011 protects public employees who disclose information in the public interest, including information relating to mismanagement, gross waste of public funds, fraud, abuse of authority, and threats to public health or safety.
- Whistleblower Protection Policy of 2016
The Federal Government introduced the Whistleblower Protection Policy in 2016 through the Federal Ministry of Finance, following approval by the Federal Executive Council[5] pursuant to the executive powers conferred by the Constitution of the Federal Republic of Nigeria 1999 (as amended).[6]
Under the Federal Government’s Whistleblower Policy, individuals may voluntarily disclose information to the Federal Government through the Federal Ministry of Finance,[7] Budget and National Planning concerning suspected misconduct or violations affecting the public interest, whether such acts have occurred, are ongoing, or are likely to occur. Such misconduct includes financial malpractice, fraud, misappropriation of public funds, breaches of financial regulations, and the solicitation of bribes.[8] The Policy permits anonymous disclosures, thereby allowing whistleblowers to decide whether to reveal their identities.
However, the Policy does not provide comprehensive statutory protection against retaliation. Nonetheless, whistleblowers whose information directly leads to the recovery of stolen or concealed public funds or assets may receive a reward ranging from 2.5 to 5 per cent of the recovered sum[9]. To qualify for this reward, the whistleblower must provide information that is not already available to the Government and cannot be obtained from publicly accessible sources.
- Economic and Financial Crimes Commission (Establishment) Act 2004
The Economic and Financial Crimes Commission (Establishment) Act 2004 protects the confidentiality of whistleblowers by providing that officers of the Economic and Financial Crimes Commission (EFCC) are not required to disclose the source of information or the identity of an informant. Such disclosure may only be made pursuant to an order of a court of competent jurisdiction, thereby providing an additional layer of legal protection for whistleblowers.[10]
The Act also imposes penalties on individuals who knowingly provide false information, thereby promoting credibility and integrity within the reporting process.[11]
- Nigerian Tax Administration Act 2025
The Nigerian Tax Administration Act 2025 introduces important provisions to protect the anonymity and confidentiality of whistleblowers within Nigeria’s tax administration system. In particular, the Act empowers the Nigerian Revenue Service and the State Internal Revenue Services to grant financial incentives to individuals who provide credible, actionable, and valuable information that leads to the recovery of unpaid taxes or the enforcement of tax compliance measures against tax evasion.
- The CBN Guidelines for Whistleblowing for Banks and Other Financial Institutions in Nigeria 2018
The CBN Guidelines for Whistleblowing for Banks and Other Financial Institutions in Nigeria 2018 were introduced to promote accountability, transparency, and ethical conduct within financial institutions. The Guidelines require employees, directors, and other stakeholders to report misconduct within financial institutions.
Such misconduct includes financial malpractice, fraud, regulatory breaches, unethical conduct, and acts detrimental to health, safety, or the environment.[12]
- Witness Protection and Management Act 2022
The Witness Protection and Management Act 2022 was enacted in 2022 and applies to specified offences, including economic and financial crimes, corrupt practices and related offences, and money laundering offences.
Under the Act, a witness is defined as a person who possesses information relating to the commission of an offence and who has provided evidence on behalf of the State in proceedings connected to that offence. The Act also extends protection to individuals who require protection because of their relationship with a witness.
The Act establishes the Witness Protection and Management Programme and empowers the implementing agency to take reasonable and necessary measures to ensure the safety and welfare of protected witnesses. In determining whether a witness qualifies for inclusion in the Programme, the relevant authority considers factors such as the seriousness of the offence, the significance of the witness’s testimony, the nature of the perceived threat, the witness’s relationship with other protected witnesses, the outcome of any psychological evaluation, the availability of alternative protective measures, and the witness’s criminal record.
Although the enactment of the Act represents a significant legislative development, its practical implementation and effectiveness remain uncertain.
- Corrupt Practices and Other Related Offences Act, 2000
The Corrupt Practices and Other Related Offences Act 2000 established the Independent Corrupt Practices and Other Related Offences Commission (ICPC), one of Nigeria’s principal anti-corruption agencies. The Act prohibits corrupt practices involving public officers, private individuals, and members of the public.
The ICPC is empowered to investigate allegations of corruption, prosecute offenders, advise public institutions on measures to prevent corruption, and educate the public about the dangers of corruption. Under the Act, corruption encompasses bribery, fraud, and related offences. Such offences include the giving and receiving of bribes to influence official duties, the fraudulent acquisition or receipt of property, the failure to report bribery, and the concealment of information or obstruction of investigations.
However, despite the statutory framework established under the Act, concerns remain regarding the effectiveness of enforcement. This is evident from cases such as that of whistleblower Joseph Ameh, which exposed practical challenges in the protection and support afforded to whistleblowers.
Risk and Challenges of the Current Whistleblowing Framework in Nigeria
- Lack of Comprehensive Legislation[13]
A major weakness in Nigeria’s whistleblowing framework is the lack of a unified, comprehensive statute governing whistleblower protection. As earlier demonstrated, the current framework remains fragmented across several statutes, policies, and sector-specific regulations.
- Limited Protection for Whistleblowers[14]
The absence of a robust, comprehensive legal framework raises serious concerns about the adequacy of the protection available to whistleblowers. The current regime does not sufficiently protect whistleblowers from retaliation, victimisation, intimidation, or workplace discrimination. This gap underscores the need for legislation that establishes clear, enforceable safeguards to encourage individuals to disclose wrongdoing.
- Lack of Adequate Public Awareness
The effectiveness of any whistleblowing regime depends significantly on public awareness and understanding of the relevant legal framework. Many individuals remain unaware of the procedures for making disclosures, the protections available to whistleblowers, and the remedies accessible in cases of retaliation or victimisation.
- Gaps in Implementation and Enforcement[15]
Challenges relating to implementation and enforcement remain prominent within Nigeria’s whistleblowing regime, particularly in relation to the Federal Ministry of Finance’s Whistleblower Policy 2016. Although the Policy has significantly promoted whistleblowing, especially through the introduction of financial reward schemes, concerns persist regarding its enforceability and the absence of comprehensive statutory backing.
Best Practices for Whistleblower Protection
Beyond mere legal compliance, organisations in Nigeria should adopt best practices that foster a secure, responsive, and ethical environment for whistleblowers. Such measures strengthen internal accountability mechanisms and encourage the reporting of misconduct. These practices include the following:
- Establishing a Clear and Accessible Whistleblowing Policy: Organisations should implement a clear, comprehensive policy that provides accessible, confidential reporting channels. Such policies should protect individuals who make disclosures in good faith from retaliation and ensure confidentiality while complying with legal and investigative obligations.[16]
- Ensuring Anonymity and Confidentiality: Whistleblowers are more likely to report misconduct where they have confidence in the reporting process. Organisations should therefore establish secure, encrypted reporting channels, restrict access to sensitive information on a need-to-know basis, and enforce robust confidentiality measures to protect the anonymity and identity of whistleblowers.[17]
- Conducting Independent and Fair Investigations: Organisations should address reports promptly, impartially, and with due diligence. The engagement of independent internal units or external investigators enhances objectivity and credibility, while maintaining strict confidentiality throughout the investigative process.[18]
- Implementing Anti-Retaliation Measures: Retaliation discourages disclosures and undermines the credibility of whistleblowing mechanisms. Organisations should adopt and enforce a zero-tolerance policy against retaliation, provide legal and psychological support to whistleblowers who are victimised, and ensure that employees and management receive adequate training on whistleblower rights and protections.[19]
- Promoting Awareness and Employee Training: An effective whistleblowing framework depends on informed and engaged employees. Organisations should communicate the importance of reporting misconduct, clearly outline reporting procedures, and explain the protections available to whistleblowers. Incorporating these measures into onboarding programmes and continuous compliance training reinforces a culture of accountability and institutional trust.[20]
- Offering Incentives for Whistleblowers: Some organisations introduce reward schemes for credible disclosures by offering financial or other incentives to individuals who report fraud, corruption, or misconduct. Similar to the reward framework adopted under the Federal Government’s whistleblowing regime, such incentives may encourage reporting and strengthen efforts to detect and prevent wrongdoing.[21]
Conclusion
Whistleblowing remains a vital mechanism for detecting and preventing money laundering in Nigeria, while also strengthening corporate accountability and the broader fight against corruption. Although Nigeria’s legal framework for whistleblower protection remains fragmented and underdeveloped, organisations continue to play a crucial role in bridging this gap. By establishing robust internal reporting mechanisms, safeguarding confidentiality, and enforcing strict anti-retaliation measures, organisations can create an environment in which individuals feel secure to report wrongdoing.
Furthermore, adopting effective whistleblowing practices and promoting a culture grounded in trust, transparency, and accountability not only minimises legal and reputational risks but also strengthens ethical governance across both the public and private sectors. Ultimately, effective whistleblower protection in Nigeria will depend on comprehensive legislative reform, stronger institutional enforcement, and sustained commitment from corporate leadership.
Reference:
- OECD, Fair Market Conditions for Competitiveness in the Adriatic Region Whistleblower Protection to Corruption, Policy Briefing Note, https://www.oecd.org/content/dam/oecd/en/about/programmes/grc/grc-see/integrity/Policy-Briefing-Note-on-W histeblower-Protectionvs.pdf Accessed 23rd April 2026. ↑
- https://www.pplaaf.org/wp-content/uploads/Nigeria-2.pdf ↑
- Section 39 of the 1999 Constitution ↑
- Section 27 of the FOI Act. ↑
- Thinkers (21st December, 2016) “FEC approves new whistleblowing policy” FEC approves new whistleblowing policy Accessed 22nd of April 2026. ↑
- Section 5, 144(5) and 148(1) of the Constitution of the Federal Republic of Nigeria 1999 (as amended) ↑
- https://whistle.finance.gov.ng/ ↑
- Section 2 and 3 of the policy ↑
- Section 14 of the Policy. ↑
- Section 39 of the EFCC Act ↑
- Section 25(1)(a)(b) of the EFCC Act ↑
- Section 5.3 of the CBN Guidelines. Circular on code of circular on corporate governance and whistle blowing-may 2014 (3).pdf ↑
- Ojobo E. A Review of the Effectiveness of the Nigerian Whistleblowing Stopgap Policy of 2016 and the Whistleblower Protection Bill of 2019. Journal of African Law. 2023;67(3):487-494. ↑
- David Tarh-Akong Eyongndi, Faith Nwayemogho Opara Lack of Protection for Whistleblowers at the Workplace in Nigeria: Drawing Lessons from Selected Jurisdictions ↑
- EKPO-TUATON, Y. H., & LEYIRA CHRISTAIN, M. (2023). Whistleblowing and Regulatory Framework. GPH-International Journal of Social Science and Humanities Research, 6(01), 01-10. ↑
- Emmanuel Gbahabo & Obehi Iyoha (9th January, 2025) “Analysing the whistleblowing Framework in Nigeria: Regulatory Landscape, Compliance Obligations and best Practices for Organizations” TEMPLARS Analysing-the-whistleblowing-framework-in-Nigeria.pdf last accessed on 22nd April 2026. ↑
- Daniel Delviken (9th of May, 2023) “Best Practice For Whistleblowing” Best Practice for Whistleblowing | Questback ↑
- Transparency International. (2018). A best practice guide for whistleblowing legislation. https://files.transparencycdn.org/images/2018_GuideForWhistleblowingLegislation_EN.pdf ↑
- Whistleblower Protection Advisory Committee, Best Practices for Protecting Whistleblowers and Preventing Retaliation (US Department of Labor 2015) https://www.whistleblowers.gov/sites/default/files/2016-11/WPAC_BPR_42115.pdf ↑
- NorthWhistle. (n.d.). Whistleblowing training: Key benefits and how to get started. https://www.northwhistle.com/whistleblowing-training-key-benefits-and-how-to-get-started/ ↑
- Hassan Muaz (20th August, 2024) “EFCC’s bid for whistle-blowers’ protection, by Tunde Rahman” THE EAGLE ONLINE EFCC’s bid for whistle-blowers’ protection, by Tunde Rahman ↑
