Beijing Law Review, 2016, 7, 158-169 Published Online June 2016 in SciRes. http://www.scirp.org/journal/blr http://dx.doi.org/10.4236/blr.2016.72017 How to cite this paper: Oluwadayisi, A. O., & Mimiko, M. O. (2016). Effects of Money Laundering on the Economy of Nige- ria. Beijing Law Review, 7, 158-169. http://dx.doi.org/10.4236/blr.2016.72017 Effects of Money Laundering on the Economy of Nigeria Akin Olawale Oluwadayisi, Moruf Oluwakayode Mimiko Faculty of Law, Adekunle Ajasin University, Akungba-Akoko, Nigeria Received 30 May 2016; accepted 25 June 2016; published 28 June 2016 Copyright © 2016 by authors and Scientific Research Publishing Inc. This work is licensed under the Creative Commons Attribution International License (CC BY). http://creativecommons.org/licenses/by/4.0/ Abstract The effects of economic crime can be more damaging than what analysts often describe especially in a developing country like Nigeria. For a long time, money laundering has become another terror threatening the growth of the economy such that it drags the wheel of governance and economic development. Beyond this general assessment, money laundering is a factor being considered in the National Budget, fight against terrorism and foreign relations between Nigeria and other na- tions. This paper considers holistic effects of money laundering on the economy of Nigeria. It adopts the doctrinal approach of methodology in researching available primary and mostly secondary sources of data in the analysis of various effects such as manufacturing of domestic products, socio- economic, financial effects, political effects, oil and gas sector. The paper further considers many challenges encountered by the past and present administration in combating money laundering. It however suggests that government should take proactive measures to tackle the menace by daring to prosecute close political associates involved as a lesson to other persons that no stone will be left unturned in the fight against the menace. Keywords Effects, Money Laundering, Economy, Challenge, Nigeria 1. Introduction Economic crime is often used for numbers of crimes associated with industry, commerce and other organized criminal activities in both the private and the public sector. Money laundering is an example of economic and financial crime. 1 Money laundering has become a critical problem that affects the socio-economic structure of a 1 Money laundering is defined as a process whereby criminals who engages in illegal activities attempt to disguise or conceal the origin or sources of their illicit funds in other to avoid prosecution, conviction and confiscation of the criminal funds. Money laundering could also involve helping any person who is involved in the commission of the predicate offence to evade the legal consequences of such actions.