THE IMPLICATIONS OF CYBERCRIME ON  ECONOMIC DEVELOPMENT OF NIGERIA.

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

The importance of information and communication technology (ICT) in all sectors of human effort is widely established and obvious. Through the use of electronics and the internet, ICT has interconnected many economies throughout the world. Many corporations, including banks, today rely on ICT and computer networks to accomplish fundamental and complicated activities (Hassan, Lass and Makinde 2012). Everyone, including criminals, may now access the electronic market. According to the World Economic Forum’s study, “More and more organizations than ever are conducting business online”. The spate of growing prevalence of digital footprints and complexity in cyber-attacks has caused the pressure to intensely safeguard data and other organizational resources from exposure to activities of hackers (Plot, 2010). This has been the reason for growing cost of adopting ICT within institutions due to extra expenditures of boosting security from cyber-attacks.

With over 4 billion users, the internet has become one of the biggest technical advancements (Ibikunle and Eweniyi 2013). The development of internet in Nigeria has undoubtedly come with unexpected effect, as a shelter for criminals. While largely recognized for its convenience and efficiency, it is also loaded with a plethora of vulnerabilities, which pose serious security concerns to users and has contributed to the growth of cybercrime (Martins Oni 2020). Cybercrime has remained a serious issue despite rising awareness and focus to fighting the threat in Nigeria and throughout the globe. For instance, Cybercrime accounted for around 43 percent of overall monetary loss due to fraud in 2016.

Cybercrime is a new phenomenon that is quickly expanding in breadth and frequency  (Plot 2010). The revolution in information and communication technology, or ICT, has substantially increased the breadth and trend of cybercrime in Nigeria. Because the world is a global village, Nigeria could not have embraced the use of social media and the internet, which are stronger promoters of cybercrime. To put it clearly, cybercrime is a result of improper or abusive use of ICT or internet service. Cybercrime is one of the most serious, puzzling, and maybe mystifying challenges in the modern age. The internet platform given by cyberspace has enabled geometric growth, productivity, efficiency, and expedited windows of opportunity for businesses, as well as the elimination of economic restrictions formerly encountered by corporate organizations throughout the world. Cybercrime offenders on the continent take use of the ease, speed, and anonymity provided by information and communication technology (ICT) to perform a limitless number of illicit acts that have caused, and continue to cause, many enterprises in the continent to fail  (Odo, and Odo, 2015).

Perpetrators of this crime typically use the internet's e-commerce system to defraud victims, who are largely foreigners, corporations, bank clients, and corporate groups, out of thousands, and occasionally millions, of dollars. Ibikunle and Eweniyi (2013) observed that Cybercrime in Nigeria is mostly committed by both young and elderly people; however, the majority of the young adults are students at the country's different higher education institutions, as well as unemployed graduates and school dropouts. They investigate the freedom provided by internet to swindle, steal, and commit mind-boggling crimes that have an impact on the socioeconomic growth of business organizations in Nigeria. Because of the increasing growth in cybercrime occurrences and the resulting financial consequences, more than eighty percent (80%) of Nigerian e-businesses are vulnerable to cyber-attacks, threatening their existence and survival.

Hassan, Lass and Makinde (2012) stated that in our economic system, cyber crime has produced a huge number of 419 criminals. People can readily perpetrate economic crime over the internet by defrauding one another of enormous sums of money both locally and worldwide. Corporate online fraud is on the rise, with corrupt banks personnel collaborating with outsiders to steal depositors' cash (Message Magazine 2020).

Aside from domestic economic sabotage and fraud, a substantial number of Nigerians, particularly youngsters, are engaged in online fraud by duping individuals and corporate organizations overseas through bogus economic dealings. Fraudulent activities through cyber crime have created emergency millionaires, even billionaires, in our economic system, which is detrimental to our economic growth because the majority of such monies obtained unlawfully are not being employed effectively to build the economy. Law enforcement authorities would have a difficult time tracing such cash. Economic sabotage as a result of cybercrime cannot be overstated. In 2017, the anticipated yearly financial loss in Nigeria as a result of cybercrime was N250 billion ($649 million), while in 2018, it was N288 billion ($800 million) (Message Magazine 2020).

1.2 STATEMENT OF THE PROBLEM

Many people throughout the world, mostly Nigerians, are unaware of the crime known as cybercrime that occurs in cyberspace. Cybercrime occurs in the computer and Internet worlds. This type of crime has a significant influence on our economy, life, and society, since our civilization is becoming into an information culture, full of information interchange that takes place in cyberspace. Martins Oni (2020), noticed that Cybercrime continues to be one of the most serious security issues plaguing the country's corporate enterprises. This has led in the loss of sensitive information and a decrease in the competitiveness of the majority of the country's corporate enterprises. There is a dearth of reliable statistics on the occurrence of cybercrime and its impact on the socioeconomic growth in Nigeria, but news reports and remarks by police and government officials suggest that the problem is on the rise. Individuals, businesses, and the government all suffer as a result of these losses, which include welfare losses, business interruption, profit reduction/increased operational costs, and revenue losses, among other things. The increasing interconnection of countries, as well as the usage of electronic gadgets to facilitate financial and commerce operations, necessitates stronger regulation and oversight of criminal activities related with technological innovation (Odo, and Odo, 2015).

1.3 OBJECTIVES OF THE STUDY

This study seeks to assess the implications of cybercrime on  Economic Development of Nigeria. Other objectives of this study are:

i.          To Identify the causes of cybercrimes in Nigeria

ii.        To Ascertain the effects of the prevalence of cybercrime in Nigeria

iii.      To examine the Impact of cybercrimes on Nigeria economy.

1.4 RESEARCH QUESTIONS

i.          What are the causes of cybercrimes in Nigeria?

ii.        What are the effects of the prevalence of cybercrime in Nigeria?

iii.      What are the Impact of cybercrimes on Nigeria economy?

1.5 SIGNIFICANCE OF THE STUDY

This study will be significant to the Federal Government as it will show the effects of cyber crimes on the economy and will enable them make effective laws to curb the spread of cyber crimes. This study will also be significant to the financial regulatory bodies as the findings of this study will show where and it is necessary to strengthen regulations concerning cyber crimes.

This study will also be beneficial to scholars as it will serve as an existing material for further research and future reference.

1.6 SCOPE OF THE STUDY

This study will effectively cover the implications of cybercrime on Economic Development of Nigeria. It will also cover the causes of cyber crimes, the effects and the impacts of cyber crimes on the economy. This study will use staff of the Economic and Financial Crimes Commission Uyo, as enrolled participants.

1.7 LIMITATIONS OF THE STUDY

This study will be limited to the implications of cybercrime on Economic Development of Nigeria. It will not be looking at the challenges caused by cybercrimes or proffer solutions. This study is limited to staff of the Economic and Financial Crimes Commission Uyo and as such the findings of this study cannot be used any where else except further research is carried out.

1.8 DEFINITION OF TERMS

Implications: the conclusion that can be drawn from something although it is not explicitly stated.

Cybercrimes: criminal activities carried out by means of computers or the internet.

Economic development:  the process by which the economic well-being and quality of life of a nation, region, local community, or an individual are improved according to targeted goals and objectives