CHAPTER ONE

INTRODUCTION

1.1 Background to the study

Corruption involves securing wealth or power through illegal means for private gain at public

expense; or a misuse of public power for private benefit. Corruption has coexisted with

human society for a long time and remains as one of the problems in many of the world’s

developing economies with devastating consequences.

Corruption is a global phenomenon which exists in varying degrees in different countries and it

consists of one of the impediments of economic growth (Agbu, 2001). Corruption is not only

found in democratic and dictatorial politics, but also in feudal, capitalist and socialist

economies.

Christian, Muslim, Hindu, and Buddhist cultures are equally bedeviled by corruption (Dike,

2005). Corruption is directly connected with rent-seeking behavior of people that have

administrative or market power (Ogunlana, 2011). The World Bank has estimated that over 1

trillion is paid in bribe for business transactions in less developed countries. Corruption is the

single greatest obstacle to economic and social development.

It undermines development by distorting the role of law and weakening the institutional

foundation on which economic growth depends (World Bank). It is one of the greatest

challenges of the contemporary world. Moreover, it undermines good government,

fundamentally distorts public policy, leads to the misallocation of resources, harms the

private sector and private sector development and particularly hurts the poor (Transparency

International).

Funds that would have been invested in infrastructural and development projects are seriously
depleted through kickbacks, over and under invoicing of contract amounts, etc. which accounts

for why the grants and aids which are given by richer and developed countries are suspended or

sometimes out rightly cancelled when it was discovered that these funds are embezzled and end

up in corrupt hands (Ogunlana, 2011).

Corruption is a canker worm that has eaten deep in the socio-economic fabric of the nation. It

ranges from petty corruption to political / bureaucratic corruption or Systemic corruption

(International Center for Economic Growth, 2019). It had stunted growth in all sectors. It has

been the primary reason behind the country difficulties in developing fast. This is evident in

consistent Transparency International’s rating of Nigeria as one of the top three most corrupt

countries in the world (Ribadu, 2013).

Although, the present civilian Government has embarked on massive war against corruption

via Independent Corrupt Practices Commission (ICPC) and Economic and Financial Crime

Corruption (EFCC), such effort is yet to have a significant positive impact. Consequently, it

seems that corruption has defied all the necessary solution (Folorunsho, 2017).

Infrastructure is defined here as the services drawn from the set of public works that traditionally

has been supported by the public sector, though in many cases the infrastructure services may be

produced in the private sector. Water, sewerage, solid waste management, transportation,

electricity, and telecommunications are examples. Infrastructure potentially can influence rural

economic performance through three avenues: expanding the use of existing resources (labor,

capital, etc.), attracting additional resources to rural places, and making rural economies more

productive. First, existing resources will be used more intensively, both in the short and long

term, when derived demand is increased in rural economies.

Infrastructure construction, such as laying highways, building electric plants, and installing other
capital facilities, offers the potential for short-term economic stimulus if rural firms and workers

are hired during the construction process. However, there is a critical deficit of these

infrastructures in Nigeria due to pervasive corruption in the country. This is why this study

intends to assess embezzlement of capital funds and provision on infrastructural development in

Surulere Local Government between 2018 and 2021.

1.2 STATEMENT OF THE PROBLEM

The pathological effects of corruption has led to democratic instability, low level of

governmental legitimacy, voracious poverty, infrastructural decay, electoral crisis, contract

killing, political assassination, insecurity and generally, developmental problems- have been very

devastating.

Eradicating corruption in the eyes of politicians and their milito-bureaucratic counterpart is

tantamount to committing political suicide. This is because, though fragile, corruption is both a

strategy and an instrument not only of political domination but also of political manipulation in

Nigeria. And though counterproductive, corruption is also been used as an instrument of political

legitimating and relegitimation. Corruption is used to acquire political office and as well sustain

it. This is seen in the politics of godfathers and payoffs as earlier discussed. Wherever corruption

becomes part and parcel of political strategies for assuming political leadership and where such

strategy enjoy, to some extent, public validation (vote buying in Nigeria has become part of the

political culture in Nigeria and an average poor man or politicians seem to have accepted this

norm in the electoral process), anticorruption laws policies and campaigns are nothing but empty

jingles and propaganda and mere political rhetoric.

Politics in Nigeria provides the easiest way to wealth and status and politicians do anything to

acquire political office including vote buying, contract killing, political assassination and

outright bribery of electoral officers and security agents.

Moreover, corruption led to economic hardship and crass poverty has rendered attempts to stem

the tide of corruption in the country difficult. Corruption is both a symptom and consequence of

poverty. Corruption breeds poverty and poverty aid corruption to flourish. Statistics has shown

that over sixty percent of Nigerians live below poverty line.

Poverty makes people amenable and irresistible to political manipulation and indeed corruption

(Brinkerhoff 2012).According to Lambsdorff, (2013) corruption may also have an adverse

impact on foreign direct investment and net capital inflows, both of which are important

determinants of economic growth.

The effect of corruption on infrastructural development in Nigeria is mammoth. This is evident

in the management of funds earmarked for infrastructural projects which gets misappropriated

and embezzled by the political class. The lack of transparency and accountability in the

management of these funds leads to situation where exertion of infrastructural projects are slow

because the contractors are not paid as and when due, thereby leading to them not being able to

continue with the project. This explains why there are many abandoned projects in the country

todays. Moreover, corruption have also led delivery of low quality infrastructures for the the

citizens. This is because a significant part of the funds that are meant to deliver on the quality

ones have ended up in private pockets through kickbacks. The active involvement of politicians

cannot be understated. For instance, there was a video of the Governor of Kano state, Alhaji

Ganduje putting bundles of dollar currency in his babaringa as kickbacks from a project. The

exposure of the governor is illustrative of the level of sleaze going on the across the country. It is
important that the issue of corruption is addressed for the country to witness sustainable

development beyond infrastructure. This is the reason why the study is being carried out.

1.3 AIM AND OBJECTIVES OF THE STUDY

The General aim of the study is to assess embezzlement of capital funds and the effects on the

infrastructural development in Surulere Local Government of Lagos State between 2018 to 2021

The specifics objectives are to:

1. Determine the nature of embezzlement of capital funds in surulere Local Government

Lagos State

2. Identify the relationship between embezzlement of Capital Funds and provision of rural

infrastructure in Surulere Local Government of Lagos State.

3. Examine the effect of embezzlement of capital funds on good governance in Surulere

Local Government of Lagos State.

1.4 RESEARCH QUESTIONS

1. What is the nature of embezzlement of capital funds in surulere Local Government Lagos

State?

2. What is the relationship between embezzlement of Capital Funds and provision of rural

Infracture in Surulere Local Government of Lagos State?

3. What is the effect of embezzlement of capital funds on good governance in Surulere Local

Government of Lagos State?

1.5 SIGNIFICANCE OF THE STUDY

This study will help beam the searchlight on the embezzlement of capital funds and provision on
infrastructural development. It will also enlighten relevant stakeholders such as policy maker,
lawmakers, civil society, and even opinion leaders on how tackle the issue of corruption in the
management of funds meant for infrastructural development in Nigeria.
This research work will also add to the body of knowledge on the already existing scholarly
materials on corruption in the management of funds meant for infrastructural development in
Nigeria.
1.6 SCOPE AND DELIMITATION OF THE STUDY

This study examines corruption in Nigeria, taking into cognizance its effect on the management

of funds meant for infrastructural development in Surulere Local Government, Lagos state

between 2018 and 2021.

1.7 OPERATIONAL DEFINITIONS OF TERMS

Embezzlement

Embezzlement refers to a form of white-collar crime in which a person or entity

misappropriates the assets entrusted to him or her. In this type of fraud, the embezzler attains

the assets lawfully and has the right to possess them, but the assets are then used for unintended

purposes.

Bribery

Bribery is refer to as offering, giving, receiving, or soliciting of any item of value to influence

the actions of an official, or other person, in charge of a public or legal duty.

Corruption

Corruption, as defined as a form of dishonesty or criminal offense undertaken by a person or

organization entrusted with a position of authority, to acquire illicit benefit or abuse power for
one's private gain

Capital

Capital is a critical component of running a business from day to day and financing its future

growth.

Infrastructure

Infrastructure is refer to as the services drawn from the set of public works that traditionally has

been supported by the public sector, though in many cases the infrastructure services may be

produced in the private sector. Water, sewerage, solid waste management, transportation,

electricity, and telecommunications

Infrastructure is the set of fundamental facilities and systems that support the sustainable

functionality of households and firms. 

Infrastructure is the term used to describe the facilities which support modern human life.

These are the main items: water supply, sewage plants, housing, roads, cable networks, food

supply facilities, schools, hospitals, airports, community meeting places, business and

government buildings, bridges, railways.

1.8 Chapterization

This study was organized in five chapters. Chapter One focused on the introduction and details the background of

the study, statement of the problem, research questions, research hypothesis, significance of the study, scope of the

study, operational definition of terms and organization of study, Chapter Two reviewed related literatures to the

topic as well as theories that was used to explain variables of the topic. Chapter Three described the research

methodology of the study, Chapter Four focused on data analysis, presentation and interpretation of data collected

on the study, while Chapter Five presented the summary, findings, conclusion and finally the recommendations.
References

Abimbola, A. (2017). Nigeria: Cesspits of Corruption. This Day Newspaper (Lagos) Analysis

19 June 2007

Acemoglu, D., and Verdier, T., (2010). "The Choice between Market Failures and corruption."

American Economic Review 90: 194-211.

Agbu. O. (2013). Corruption and Human Trafficking: the Nigerian case. West Africa Review

(2003)

Ajibola, B. (2017). Plea Bargain is Corruption. Sunday Punch, Nigeria Daily Paper

publication, July 29, 2007, pp20