By Abidemi Adebamiwa, with Idris Muhammed Abdullahi
As Nigerians, we often talk about corruption like it’s some distant beast—lurking in government corridors, oil companies, or public accounts. But the truth is that corruption survives not just because someone steals, but because too many people and institutions—including private schools—quietly look the other way.
Recent investigations have revealed troubling patterns: millions of naira allegedly sourced from public funds being funneled into elite private schools as tuition payments. While legal proceedings are ongoing and no guilt has been established, the broader question remains: How did these institutions accept such large sums without verifying the sources? Why didn’t they ask questions?
If a public official earning a modest salary pays tens of millions of naira upfront for school fees, and the school does not inquire into the source, then that institution has, knowingly or not, enabled potential money laundering. They are no longer neutral. They become quiet participants in a system that normalizes illicit wealth under the banner of “education.”
The Law Is Clear: Schools Are Not Exempt
Nigeria’s legal framework already provides strong grounds to hold institutions accountable.
Under the Money Laundering (Prevention and Prohibition) Act, 2022, private schools fall within the category of Designated Non-Financial Businesses and Professions (DNFBPs). This means they are legally bound to:
Conduct basic due diligence on clients—especially when handling unusually large payments;
Report suspicious transactions above ₦5 million (for individuals) to the Economic and Financial Crimes Commission (EFCC) and the Special Control Unit Against Money Laundering (SCUML); and
Avoid “willful blindness” when accepting funds from politically exposed persons or clients with questionable financial profiles.
Failure to comply carries serious consequences. Section 18 of the Act criminalizes non-reporting of suspicious transactions, prescribing penalties ranging from heavy fines to imprisonment.
Complementing this is the Proceeds of Crime (Recovery and Management) Act, 2022, which empowers the government to seize or recover assets paid for with illicit wealth, including tuition fees. The law doesn’t stop at the thief—it follows the money, even to a private school’s account.
The EFCC Act, 2004 further authorizes the commission to prosecute institutions that knowingly or carelessly assist in laundering public funds.
And Globally, Nigeria Is Not Alone
This principle is not unique to Nigeria. In the United States, for example:
The Bank Secrecy Act (BSA) requires institutions to report cash transactions above $10,000 and flag suspicious financial behavior.
The PATRIOT Act enforces strict customer due diligence, particularly for politically exposed persons.
The Civil Asset Forfeiture Reform Act (CAFRA) allows the government to seize funds and property connected to criminal proceeds—even if they’ve landed in private institutions.
Globally, schools and universities are increasingly being viewed as potential gateways for laundering money, and compliance expectations are rising accordingly.
Schools Must Embrace Their Duty of Care—Financially and Morally
A school’s responsibility doesn’t stop at physical safety or academic excellence. It extends to financial and ethical stewardship. When institutions fail to question suspicious funds, they risk becoming tools for the very corruption that undermines the society they claim to serve.
We saw this in another tragic context: the case of Louisville Girls Secondary School, where negligence in medical response led to a student’s death—and a ₦100.3 million court judgment. That ruling sent a clear message: institutions that fail in their duty of care will be held accountable.
Financial negligence is no less serious. Schools must ensure they do not become havens for illicit funds—intentionally or otherwise.
What Should Be Done: Five Practical Reforms
To protect the integrity of our educational institutions and stem the flow of illicit funds, we recommend the following steps:
- Formal Inclusion of Schools as DNFBPs
Private schools, particularly in urban centers like Abuja and Lagos, should be formally recognized under the AML/CFT regime and obligated to follow compliance protocols. - Mandatory Reporting of Suspicious Transactions (STRs)
Schools must be required to flag unusual payments—especially from politically exposed persons or parents with unverifiable incomes—to the NFIU or EFCC. - Income Justification and Basic Due Diligence
Like banks implement KYC (Know Your Customer), schools should adopt KYP (Know Your Payer) policies—requesting basic income proof or transaction explanation when payments exceed a reasonable threshold. - Whistleblower Protections
Teachers, bursars, and administrators who raise red flags internally or with authorities must be protected under law, ensuring they’re not punished for doing the right thing. - Enforceable Sanctions
Institutions that fail to comply with these obligations should face scaled sanctions—from public disclosure and regulatory warnings to fines or suspension of accreditation. Elite Schools Bear Even Greater Responsibility
Elite private schools, often the first stop for laundered wealth, must lead the way in reform. Their silence—whether due to ignorance or indifference—deepens inequality. It creates a system where honest parents struggle to pay fees while the corrupt purchase prestige and legitimacy using stolen billions.
Education is supposed to be society’s great equalizer. But when schools enable corruption, they reinforce the very inequities they claim to challenge.
Integrity Must Be Non-Negotiable
Corruption thrives where accountability is optional. Schools are not exempt from that truth. Whether in Nigeria, the U.S., or anywhere else, institutions that fail to ask questions about the funds they accept risk becoming accomplices to national decay.
We must hold schools to a higher standard—not to punish them, but to protect the integrity of education itself. Let’s treat financial negligence with the same seriousness as academic malpractice. Because when schools enable corruption, they fail their students, their mission, and the nation at large.
Abidemi Adebamiwa is a public policy analyst and Managing Editor at Newspot Nigeria
Idris Muhammed Abdullahi is an AML/CFT and CPF expert, and Country Specialist on Anti-Corruption, Illicit Financial Flows, Beneficial Ownership, Tax Evasion, and Asset Recovery
