Why Scammers Love Nigeria - the Benefits of Living in Nigeria and the Nigerian 419 Scam   9/7/2007 - 3,252 views, 2 Comments

There are a few feactures Of Federal government taxation in Nigeria, along with an overburdened and at times lax penal system, which collude to make Nigeria one of the ideal places to run an advanced-fee scam. In fact, the common name for these scams - 419 scams - comes directly from the Nigerian Penal Code - section 419.

Here is the text of Nigeria’s Penal Code - Criminal Law section 419:

419. Any person who by any false pretence, and with intent to defraud, obtains from any other person anything capable of being stolen, or induces any other person to deliver to any person anything capable of being stolen, is guilty of a felony, and is liable to imprisonment for three years.

(b) obtained credit for himself or any other person, by means of a cheque that, when presented for payment within a reasonable time, was dishonoured on the ground that no funds or insufficient funds were standing to the credit of the drawer of the cheque in the bank on which the cheque was drawn, the thing or its delivery shall be deemed to have been obtained or induced, or the credit shall he deemed to have been obtained, by a false pretence unless the court is satisfied by evidence that when the accused issued the cheque he had reasonable grounds for believing, and did in fact believe, that it would be honoured if presented for payment within a reasonable time after its issue by him.

In addition to the pausity of enforcement of section 419, the Nigerian Federal income tax laws make it easier in Nigeria than in many other countries to receive income and not have to account for it - and even if you do account for it, the rates are much more attractive than in many other countries.

First, the highest percentage of income tax that someone in Nigeria would have to pay - at the very top of the tax heap - is only 25%. Filing a false return - if you are even caught - will subject you to only a 200 Nigerian Naira fine plus an additional fine of twice the amount you attempted to bilk the government out of. A Nigerian Naira is worth about 1/8th cent, USD, making the fine about $1.61, plus the doubled amount of the amount you tried to cheat the government out of.

With the average Nigerian salary for an entry level college graduate ranging from between 25,000 Naira to 50,000 Naira - and with such salaries topping out at about 100,000 Naira - which is only a little over $800.00 a month, along with the lax penal code and easy taxes, it’s easy to understand why Nigeria has become the scam capital of the world. One payoff from one scam can equal more than a year’s salary at any legitimate job.