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    Nigeria graft watchdog jails 2 staff for demanding bribes

    * Two EFCC staff demanded $640 from local official

    * Corruption siphons billions of dollars in Nigeria

    LAGOS, Oct 5 (Reuters) - Two officers at the body which

    investigates corruption in Nigeria have themselves been jailed

    for five years for demanding a $640 bribe from a local

    government official, the watchdog said on Friday.

    The Economic and Financial Crimes Commission (EFCC) said the

    two had been found guilty of "conspiracy and obtaining money

    under false pretence" for demanding the bribe from the chairman

    of Bama local council in northeast Nigeria to terminate a case

    against him in 2010.

    It added that they were not investigators, so did not even

    have the authority to do that.

    "They were alleged to have asked Mr. Kachalla to send them

    the money in order to bribe other investigators of the

    Commission to destroy a petition written to the EFCC, which

    indicted him for alleged mismanagement of public funds," the

    EFCC said on its website.

    Since its inception in 2003 under former President Olusegun

    Obasanjo, the EFCC has convicted dozens of people for crimes

    ranging from smuggling to embezzlement, recovering millions of

    dollars in one of the world's most corrupt countries.

    Yet critics say it has only successfully convicted

    relatively 'little' people, leaving the wealthy and powerful

    elites gorging on grand corruption largely untouched.

    The watchdog is conducting an investigation into a

    multi-billion-dollar fraud in the administration of fuel

    subsidies, for which around nine fuel marketers have been named

    as suspects, with dozens more being investigated.

    Decades of military rule and large incomes from oil reserves

    have bred a culture of corruption that has enriched Nigeria's

    political elite but left the majority of its 168 mi llion pe ople

    in poverty.

    ($1 = 156.5500 naira)

    (Writing by Tim Cocks; Editing by Robin Pomeroy)