Analysis of Forensic Accounting investigation in the Recovery of Looted Funds in Nigeria

Abstract

This study analysed the role of forensic accounting investigation (Wallace, 1991; Crumbley, 2003) in the recovery of looted funds in Nigeria, a country ranked 140th out of 180 on Transparency International's 2024 Corruption Perception Index with a score of 26 (Transparency International, 2024). The research design used ex-post-facto design with the population of 938 ICPC staff. Panel data were used between the periods of 2019 3 2022 obtained from the Economic and Financial Crimes Commission (EFCC) and ICPC reports between 2019 and 2022. Descriptive statistics and trend analysis were employed to analyse the frequency and trend between the assets and cash recovery, which have shown volatility patterns (Udefuna et al., 2025; Akinninyi et al., 2025). The findings reveal that forensic accounting significantly enhances the detection and tracing of illicit financial flows, particularly through advanced digital forensics, transaction monitoring, and lifestyle audits (Ezejiofor & Okonkwo, 2025; Omeremu & Jacob, 2025). The results show a positive and significant effect of forensic investigation on the volume of looted recovered funds, such as the N364.5 billion and $326.5 million recovered in 2024 (EFCC, 2025). However, the study also identifies institutional bottlenecks, including weak inter-agency collaboration, judicial delays, and inadequate technological infrastructure, which undermine recovery effectiveness (Udefuna et al., 2025). The study concludes that forensic accounting is a critical tool for combating corruption and recommends strengthening forensic capacity, adopting advanced analytics, and improving coordination among enforcement agencies.