JORIND 14(2) December, 2016. ISSN 1596-8303. www.transcampus.org/journal; www.ajol.

info/journals/jorind

CYBERCRIME AND THE CHALLENGES OF SOCIO-ECONOMIC DEVELOPMENT IN NIGERIA

Jackson T.C.B. Jack and Robert W.Ene

Department of Sociology and Anthropology, Federal University, Otuoke, Bayelsa State, Nigeria
E-mail:[email protected]+2348037598165

Abstract
This paper examined the nature and dynamics of cybercrime in Nigeria and its contribution to the socio-economic
development challenges in the country. The paper adopted the library research method as secondary data sourced
fromarticles, journals, periodicals and publications were utilized. Anchored on the risks society theory, the paper
argues that the internet revolution and the advent of mobile telephone technology in the country has posed
unintended risks to the society evident in increasing surge in cybercrime such as yahoo-yahoo-advanced fee fraud,
hacking, cyber stalking, virus attacks, espionage, character defamation, pornography, online gambling and so on.
The paper concludes that widespread cybercrime has negative impact on the socio-economic development of Nigeria
as it tarnishes the image of the country at the global scale, deters foreign investments, and reduces confidence in the
digital economy; with huge financial loses to individuals, business organizations and the government. Following these
submissions, the paper amongst others recommends that the Nigerian government should enact comprehensive
laws to curb cybercrime, while building the capacity of security experts on contemporary cyber technology; also the
government should provide jobs and entrepreneurial development opportunities to engage young people to keep
them away from crime, while pursuing vigorous enlightenment campaigns for the citizens on basic preventive and
protective measures against cybercrime.

Keywords: Cybercrime, globalization, development, challenges

Introduction revolution, it comes with it several ills especially with

A major impact of globalization in our society today is regards to cybercrime. Accordingly, Shehu (2014) posits
that we all have come to rely on the sheer size that the convergence of computing and communications,
technological power and fast speed of the internet to and the rapid growth of digital technology have brought
seek out immeasurable volumes of information to immense benefits to society, but these benefits also
explore the unknown to communicate with virtually come with greater risks both nationally and
anyone, anywhere and at any time across the globe. internationally. Today, many traditional crimes are now
According to the Internet World Statistics report, as at being aided or abetted through the use of computers
2000 to 2010, the internet has expanded at an average and networks, and wrongdoing previously never
rate of 444.8% on a global level, and currently an imagined has surfaced because of the incredible
estimated 1.96 billion people are on the internet. In capacities of the information system. Folashade and
contemporary Nigeria, most individuals possess mobile Abimbola (2013) argued that the information technology
phones with internet access and are registered on social revolution associated with the internet has brought about
media platforms such as Facebook, twitter, watsapp, two edge functions: that is on one hand, it has
yahoo mail, Google mail and so on. Sesan, Soremi and contributed positive values to the world; while on the
Oluwafemi (2013) posits that at the turn of the 21st other hand, it has produced so many maladies that
century due to the advent of mobile telephones, Nigerian threaten the order of the society and also producing a
Internet penetration levels took a running jump from less new wave of crime to the world. Similarly, Vladimir
than 5% in 2002 2003, to over 30% by the end of 2012 (2005) and Olumoye (2013) posits that the internet
with the growth poised to continually accelerate. These which is a global network uniting millions of computers
internet based platforms have provided an array of located in different countries and opens broad
opportunities for individuals to communicate and opportunities to obtain and exchange information is now
network with people of diverse cultures all over the been used for criminal purposes for economic gains.
world; it has aided local business to grow by providing Cybercrime is a global phenomenon perpetrated by
regional and international markets and it is shrinking the syndicates with regional and international networks. In
world into one small community (Agba 2002). However, buttressing this, Herselman et al (2005) and Gordon
irrespective of these gains associated with the internet (2002) averred that having no borders or physical

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 JORIND 14(2) December, 2016. ISSN 1596-8303. www.transcampus.org/journal; www.ajol.info/journals/jorind

boundaries, and also not been subject to any form of The concept of cybercrime
importation, customs or forex constraints and due to lack The term cybercrime was coined by Peter Cassidy,
of rules and codes of a central authority governing it Secretary General of the Anti-Phishing Working Group,
(Guillane, 2009) cybercrime can be perpetrated by any to distinguish computer programmes (and coordinated,
one from anywhere in the world.According to crime- interlocking sets of programmes) that are designed
research.org as early as 2003 the United States was specifically to animate financial crime from other kinds of
already leading the world in percentage of cyber-attacks malevolent packages (Shehu, 2014). Cybercrime
at 35.4 percent, followed by South Korea at 12.8 percent involves the use of computers and the internet to
(Hassan, Lass and Makinde, 2012). According to Frank defraud unsuspecting victims ranging from identity theft,
and Asirifi (2015), a similar study by Norton revealed a credit card theft (in which victims credit cards
staggering 65% of internet users globally, and 73% of or bank account numbers are stolen by computer
internet users in the U.S.A as victims of cybercrime. As scanners and used to pay for goods and services) to
the most victimized nations of cybercrime, U.S.A ranks money laundering by terrorists, and organized crime
third, after China (83%) and Brazil and India (76%). It is syndicates. Accordingly, Halder and Jaishankar (2011),
therefore not surprising that Nigeria with few internet views cybercrime as offences committed against an
crime legislation (Ibikunle 2005) and limited cyber individual or group of individuals with a criminal motive
protection technology records high prevalence of to intentionally harm the reputation of the victim or cause
cybercrimes. physical or mental harm to the victim directly or
indirectly, by using modern telecommunication networks
Cybercrime has severe impacts on the society, ranging such as internet (chat rooms, e-mails, notice board and
from its ability to aid corruption, money laundering, groups) and mobile phones. This definition limits
military espionage, and terrorism and on the overall, cybercrime as internet aided illicit activities targeted at
undermining technological and socio-economic individuals and groups. However, for Kamini (2011)
development of any country. In addressing the impacts cybercrime is defined as crimes committed on the
of cybercrime, Kamini (2011) argues that a nation with internet or unlawful acts using the computer as either a
high incidence of crime cannot grow or develop; hence tool (e.g. fraud, forgery, identity theft, phishing scams,
cybercrime leaves negative social and economic spams, junk e-mails, pornography, online gambling,
consequences. In Nigeria, such consequences are intellectual property crime, cyber defamation, cyber
manifest in all spheres of the nations socio-economic stalking etcetera) or a targeted victim (e.g. unauthorized
life and due to the stigma of corruption associated with access to computers networks, electronic information
the country, foreign investors are taking steps geared at theft, denial of service attacks, malware, malicious
blocking e-mails originating from the country and codes, e-mail bombing, data didling, salami attacks,
financial instruments are accepted with extreme caution. logic bombs, web jacking, internet time theft, Trojan
Information flow from Nigeria are been characterized as attacks etcetera). This implies that allcybercrimes
questionable because of the criminal elements that involveboth the computer and the individuals as victims;
make it unreliable, inaccurate and untrustworthy it depends on which of the two is the main target.
(Iwarimie-Jaja, 2010). This has more severe implications
on the technological and socio-economic development Categories of cybercrime
of the country when compared to conventional crimes There are numerous classifications of cybercrime,
and as highlighted by Folashade and Abimbola (2013), Brenner (nd cited in Maitanmi et al 2013) classified
the contribution of the internet to the development of the cybercrimes into target cybercrime (computer as target),
Nigeria has been marred by the evolution of new waves tool cybercrime (computer as tool of cybercrime) and
of cybercrimes. computer incidental (computer playing minor role in the
crime). This categorization of cybercrimes corroborates
In the light of the foregoing, this paper examines the the aforementioned conceptualization of cybercrime as
nature, dynamics and impacts of cybercrime on the provided by Kamani (2011) and he broadly classified
socio-economic development challenges in Nigeria. The cybercrime into the following categories:
study utilized the library research approach and relied on
secondary data for analysis sourced from articles, i. Cybercrime against individual and property: These are
journals, periodicals and publications. me activities targeted against individuals, their persons
and properties and they include the following:

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 JORIND 14(2) December, 2016. ISSN 1596-8303. www.transcampus.org/journal; www.ajol.info/journals/jorind

harassment via e-mails, cyber stalking, discrimination of xi. Unusual situation can be identified as error
obscene materials, defamation, unauthorized control or rather than crimes.
access over computer system, indecent exposure, e-
mail spoofing, cheating and fraud, computer vandalism, Moreover, within the Nigerian context, Hassan, Lass and
transmitting virus, net-trespass, intellectual property Makinde, (2012) adding to the list identified the following
crime, internet time thefts. causes of cybercrime in Nigeria: 44
xii. Rapid urbanization (Meke, 2010)
ii. Cybercrime against organizations: These are activities xiii. Increasing youth Unemployment
targeted against governments, firms, companies, and xiv. Quest for wealth, values for materialism
corporate bodies. These include unauthorized and negative role models
control/access to computer systems, possession of xv. Weak implementation of cybercrime laws
unauthorized information, cyber terrorism against and inadequately equipped agencies
governments and corporations, espionage, distribution
of pirated software and so on. Theoretical framework
This paper is anchored on the theoretical underpinnings
of German Sociologist, Ulrich Becks risk society
iii.Cybercrime against society:These are activities theory. The theory holds that there is a movement away
targeted against the society at large. These include from traditional and industrial society and towards a new
pornography, indecent exposure, trafficking, financial modern risk society which is individual, global and self-
crimes, sales of illegal articles, online gambling, and confrontational (reflexive). Beck (1992:21) defines the
forgery and so on. risk society as a systematic way of dealing with hazards
and insecurities induced and introduced by
Causes of cybercrime modernization itself. The nature of modern societies is
Several scholars have sought to provide answers to the such that risks multiply with the increasing complexities
undying question of the causes of cybercrime and why of societal systems of production, consumption,
cybercrime continue to flourish in our society. Kamani governance and technological control and as Jonathan,
(2011) has adduced the following reasons in this Nick and George (2004) posits, high modernity is
regards: characterized by the production and distribution of risks
i. Capacity to store mega sized data in from an increasingly complex techno-scientific system.
comparatively small space Similarly, Bell (1998 cited in King and McCarty, 2009)
ii. Complexities of the computer software and describes risk society as a society in which the central
programmes engender human errors political conflicts are not class struggles over the
iii. Human negligence on cyber security which distribution of money and resources but instead non-
creates easy access for cybercriminals class-based struggles over the distribution of
iv. Cybercrime is associated with loss of technological risk. Hence, the risk society is one where
evidence as data are routinely destroyed every citizen is exposed, to some degree, to
making it difficult to apprehend offenders technological dangers such as radioactivity, airborne
In the same vein, Swanson et al (1988, cited in Iwarimie- and waterborne pollution, and hazards from mass
Jaja 2012) opined that computer crimes flourish as a transportation such as airline, automobile or train
result of the following factors. crashes, including cybercrimes. This implies that
v. Potential for gain is greater than the risk. paradoxically scientific and technological advancement
vi. Managers disassociate themselves from produces new forms unintended risks and does portend
operations. severe consequences for society. Beck (1992) rightly
vii. Computer security is lax. demonstrated this when he asserts that in late modern
viii. Insufficient caution in hiring, training and society risk is increasing due to technology and science
assigning personnel. rather than being abated by technological progress and
ix. Certain types of computer crimes are it is not a world which is less prone to risk, but it is world
easily accomplished by people with little risk society with magnitude of risk so great, that
skills. transcends both time and place, by becoming global in
x. Obtaining necessary evidence may be scope, the control of risk across is both impossible and
difficult. meaningless. This is so apt with the advent of the
 JORIND 14(2) December, 2016. ISSN 1596-8303. www.transcampus.org/journal; www.ajol.info/journals/jorind

internet revolution and mobile telephony technology Nigeria cybercrime impact per capita asbeing
which has aided instant messaging, communications, exceptionally high while reporting Nigerian money offers
electronic business transactions, banking, and electronic asthe fastest online scam, up to 90 % in 2001( Saulawa
learning anywhere in the world just by the click of a and Abubakar, 2014). The country hence as suggested
mouse. The globalization process is fast tracked with the by Maitanmi et al (2013) has carved a niche for herself
information communication technology as hitherto as the source of what is now popularly called 419-mails,
distance and space barriers between countries are no named after Section 419 of the Nigerian Criminal Code
more with the world shrinking into one global community. (Capp 777 of 1990) that forbid advance fee fraud. For
Hence, the positive role of the internet technology example, Mbaskei (2008 cited in Hassan, Lass and
revolution on the development of the society cannot be Makinde, 2012) reports that, secret agents of the UPS
overemphasized, however like every other technological (United Parcel Service) smashed a record scam with a
innovation it came with it unintended risks which face value of $2.1billion (about N252 billion) in Lagos.
includes cybercrime. The internet hosts billions of The interception was done within three months. Some of
computers with billions of people behind those the instruments uncovered by the UPS were documents
computers and one is unaware of the risk that can occur like Wal Mart Money orders, Bank of America
with a single click of mouse as hacking, fraud and online cheques, U.S postal service cheques and American
schemes are some of the risks to which internet users Express travelers cheques. The prevalence of
are exposed to. The Information Society we live in cybercrime in Nigeria is worrisome not only for the
today thus creates unintended risks such as property citizens of the country but the government as the image
theft, money laundering, terrorism and so on that are of the country is tarnished as a result of this menace.
mostly virtual, invisible and most likely irreversible The former National Security Adviser (NSA), Sambo
thereby exhibiting a Risk Society for individuals, Dasuki expresses this concern when he posits that
organizations and governments with severe implications every 9 seconds, a Nigerian commits crime on the
for technological and socio-economic development. internet with a sharp rise from 0.9% in the 90s to 9.8% in
2014 ( Saulawa and Abubakar, 2014).
The nature and dynamics of cyber crime in Nigeria
The usage of the internet is growing daily in Nigeria and The nature of cybercrime in Nigeria is continually
as Folashade and Abimbola (2013) suggests this surge evolving with the emergence of new technologies.
is associated with the increasing availability of Accordingly, Kamini (2010) posits that most cybercrimes
broadband connections due to the advent of mobile in Nigeria are tool cybercrimes in nature. This implies
telecommunications and decrease in subscription fee. that cyber criminals in Nigeria mostly use the computer
Today, most Nigerians and their business are registered and internet as a tool to defraud and harm others
on several social networking platforms. The assimilation instead of targeting the computers. He argues that this is
of the internet into every sphere of our socio-economic so because Nigerians are yet to develop their technical
lives ranging from electronic banking, electronic knowledge to accommodate and perpetrate target
commerce, and electronic education to electronic cybercrimes. Relatedly, Saulawa and Abubakar (2014)
governance has come with it new forms of cybercrimes argues that generally cybercrimes in Nigeria are
as cyber technology evolve. Cybercrime activities are targeted at individuals and not directly to computer
prevalent in Nigeria and according to a recent report in systems hence requiring less technical expertise on the
the Daily Trust, (2010 cited in Maitanmi et al 2013; part of the criminals. These kinds of tool cybercrimes
Folashade and Abimbola 2013)by the Internet Crime prevalent in Nigeria are perpetrated using different kinds
Complaint Centre, which is a partnership between the of computer and telecommunication tools operational in
Federal Bureau of Investigation (FBI) and Americas the country. Ribadu (2007) suggests that the prominent
National White Collar Crime Centre, revealed that forms of cybercrime in Nigeria are cloning of websites,
Nigeria is ranked third among the list of top ten sources false representations, internet purchase and other e
of cybercrime in the world with 8% behind the US (65%) commerce kinds of fraud. Similarly, Olugbodi (2010),
and the UK (9.9%). According to Ribadu (2007), Nigeria identified website cloning, financial fraud also popularly
is also ranked first in the African region as the target and known as Yahoo-Yahoo, identity theft, credit card theft,
origin of malicious cyber activities; and this is spreading cyber theft, cyber harassment, fraudulent electronic
across the West African sub-region. Similarly, the mails, cyber laundering and virus/ worms/ Trojans. Also,
American national Fraud Information Centre ranked Ibikunle (2005) and Olumoye (2013) suggests that the
 JORIND 14(2) December, 2016. ISSN 1596-8303. www.transcampus.org/journal; www.ajol.info/journals/jorind

advent of electronic commerce and electronic banking in funds acquired illegally are not been used productively
Nigeria is accompanied by attended rise in fraud due to to promote the economy of the nation. The crime has
the new degree of complexities and vulnerabilities diverted the attention of so many Nigerian youth from
associated with electronic commerce which the undertaking productive activities such as manufacturing,
fraudsters exploits. Furthermore, Longe et al (2007) and construction as well as large scale farming that would
Olumoye (2013) opined aside the conventional financial have grown the economy to such criminal activities
crimes, that an emerging worrisome dimension in the because of the flamboyant life chances and life styles
Nigerian cyberspace is pornography and prostitution that it presents (Folashade and Abimbola, 2013).
aided by technology-induced anonymity on the internet.
The prevalence of cybercrime has also created a bad
Cybercrimes in Nigeria are largely perpetrated by young image for Nigeria amongst the committee of nations as
men popularly called yahoo-boys or yahoo-zee one of the most corrupt nations in the world. This
millionaires.Most of these lads are undergraduates of tarnished national image affects the way Nigerians are
Nigerian universities and young graduates (Folashade treated abroad with suspicion and extreme caution as
and Abimbola, 2013) involved in hacking, cloning and Nigerians are stereotyped to be 419ers (conmen) and
defrauding unsuspecting victims using tools such as hence not to be trusted. Private
password cracker, key loggers, network sniffers, port companies around the world are beginning to take steps
scanners, vulnerability scanners, exploits and so on. As geared towards blocking e-mail originating from the
an underworld criminal activity, cyber criminals in Nigeria country and financial instrument are accepted with
plan their executions in some details, as their extreme caution. Foreign investors are scared of the
perpetrations are deliberate with their victim-system or country, considering it as risky and unattractive business
network pre-chosen and identified deliberately and not zone.
randomly. Their targets are usually the gullible, greedy,
and inexperienced and those desperate for quick money Cybercrime also has an implication in the socio-
or love and relationships. economic advancement of the country as information
flowing from the country is been characterized as
Cyber crime and challenges of socio-economic questionable because of the criminal element that make
development in Nigeria it unreliable, inaccurate and untrustworthy, (Iwarimie-
The role of the internet in the development of a nations Jaja 2010). Indeed one cannot overemphasize the
economy has well been established. Accordingly, economic sabotage resulting from cybercrime in Nigeria.
Ehimen and Bola (2009) argued that the internet has According to Saulawa and Abubakar, (2014), in 2012, an
created a geometric growth and accelerated windows of estimated $1 trillion was lost to cyber-related frauds
opportunities for businesses and the removal of globally although only $390 billion was reported for
economic barriers hitherto faced by nations of the world. obvious reasons; and only recently a report by the South
Considering these limitless advantages of the internet, African based Institute of Digital Communication
one can easily subscribe to the fact that it is an indicates that Nigeria is losing about $ 80 million dollars
important tool for national development in a developing yearly to software piracy alone. Similarly, Sesan, Soremi
country like Nigeria. However, the internet based and Oluwafemi (2012) reports that in 2012 alone, an
cybercrime has become a huge menace threatening the estimated customer loss of N2,
socio-economic and technological advancement of 146,666,345,014.75($13,547,910,034.80) was incurred
Nigeria. Shehu (2014) maintains that socially, to cybercrime in Nigeria. In highlighting the
cybercrime activities such as cyber stalking, consequences of cybercrime in Nigeria, Folashade and
harassment, and blackmail and cyber terrorism are a Abimbola, (2013) posits that cybercrime hinders the
menace to individuals right to privacy and fundamental socio-economic development of the country as it
freedom. Similarly, cybercrimes like pornography, child engenders lack of trust and confidence in profitable
predation, online gambling, online prostitution and so on transactions, promotes denial of innocent Nigerians
undermines morality in society and puts the society at opportunities abroad and causes loss of employment
risks of breakdown of social norms and values. Cyber- and revenue loss. Also, the findings of the study by
crime has thrown up emergency millionaires or Maitanmi et al (2013) shows that cybercrime impedes
billionaires in Nigeria which is injurious to the socio- socio-economic development in Nigeria as it scares
economic development of the country as most of such away foreign investors due to the low level of confidence
 JORIND 14(2) December, 2016. ISSN 1596-8303. www.transcampus.org/journal; www.ajol.info/journals/jorind

it has created for the Nigerian economy. The findings state here that although cybercrime is a global
also show that cybercrime has aided other illicit activities phenomenon, the vulnerabilities and impact trends do
in Nigeria such as intellectual plagiarism, disruption of tend to differ depending on the strength of the measures
public services, drug trafficking, and terrorism. each country put in place to combat menace such as
From the foregoing, the effect of cybercrime continues to cyber laws and cyber protection technologies. Sadly, as
be evident with many potential negative impacts on the shown in the arguments above, Nigeria ranks high
socio-economic development of Nigeria. Summarily, amongst the cybercrime impacted countries however the
these impacts include the following: countrys response to mitigate cybercrime is still very low
i. Widespread cybercrime has tarnished due to inadequate cybercrime legislations, limited
the image of Nigeria in the technology and lack of cyber security experts. The
international community thereby shortage of human capital in cyber-security hence
making the country unsafe for foreign becomes a major vulnerability factor in addressing
investors; Nigerias security needs to combat cybercrime and cyber
ii. Cybercrime has negatively impacted threats emanating from cyber criminals. For example,
on confidence Nigerians have on the Saulawa and Abubakar, (2014), posits that the Indian
digital economy thus inhibiting government is earmarking to develop five million cyber
economic growth; security experts in the next three years, while North
iii. Cyber-attacks against businesses and Korea has already sponsored15, 000 cyber security
organizations has the ability to experts with China having over 25 million cyber
damage organizational reputation and commandoes; with Nigeria needing nothing less than
result in a loss of customers and one million cyber security experts in the next two years
revenue; to combat cybercrimes. This should be supported by
iv. The need to develop measures to aggressive mass sensitization of the citizenry on the
combat and respond to cyber-attacks nature, schemes and tactics utilized by cybercriminals
imposes significant costs on as a means of reducing their vulnerability. Following
businesses and organizations; these submissions, the paper concludes that efforts by
v. Financial losses accrued by the government and the citizenry geared towards
consumers and businesses resulting curbing cybercrimes must be reinvigorated as cyber
from the theft of information and security is crucial for maintaining the continuity of vital
money, or extortion impedes social services, preservation of public trust in information
economic growth; systems and promotion of socio-economic development
vi. Nigerias critical infrastructure may be in Nigeria.
targeted by cyber-attacks and this can
lead to immediate and long term Recommendations
economic losses. Following the conclusion reached in this study, the
vii. Cybercrime has the potentials to fuel following recommendations have been
other criminal activities and increases proffered:
cost in time and resources for law 1. The government should pursue aggressive
enforcement agencies. public sensitization against cybercrime using
viii. It can lead to loss of business assets the mass media and the promotion of personal
and cost of government agencies and cyber space security should be incorporated in
business in re-establishing credits the primary, secondary and tertiary education
histories, accounts and identities curriculum.
ix. Loss of personal financial resources 2. Individuals need to observe simple personal
and the subsequent emotional safety rules such as not disclosing to strangers
damage. personal effects and banking details such as
credit card pins, bank account numbers, e-mail
Conclusion codes and use of antivirus on their systems
The menace of cybercrime has eaten deep into the aginst malware etcetera.
fabrics of our society and poses threats to the socio- 3. Government and private sector should provide
economic development of the country. It is pertinent to jobs for young graduates and where jobs are

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 JORIND 14(2) December, 2016. ISSN 1596-8303. www.transcampus.org/journal; www.ajol.info/journals/jorind

not readily available vocational skills and Frank A.D and Asirifi M.K (2015): The Impact of
entrepreneurial development programmmes Cybercrime on the Development of Electronic Business
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youths getting involved in cybercrime. Sciences, Vol. 4, No. 01, P.P. 22 34.April 2015. ISSN:
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cybercrime, the government needs to enact
48
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