CORRUPTION AND DEVELOPMENT IN NIGERIA: 2011-2015

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 CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND TO THE STUDY

Nigeria as a nation picked up autonomy in 1960, yet the regular citizen time

couldn't keep going long as it was abbreviated by the invasion of the military staff into

Nigerian governmental issues. This turns into the destiny of the nation for a considerable

length of time to come as the power tussle is presently between one military gatherings to

another. Numerous researchers have connected their entrance to be the essential

wellspring of the quandary confronting the nation anyway it is sheltered to state this in

itself can't give an apparent perspective of the nation confronted with unemployment,

destitution a long ways past the hypothesis of a few researchers corruption has been

labeled as another growth eating the texture of the nation's economy. It was Diminish

Squeeze who initially gave a socio political reason for corruption in Nigeria, when he

place that the two publics or African pioneers infections all with the repeating subject of

reason sparing Nigeria from a financial down turn Corruption is a noteworthy reason for

neediness and underdevelopment. Nigeria is one of the Nations in Africa that loses

billions of dollars yearly in light of corruption.

Nigeria was positioned the second most degenerate nation on the planet in 2004].

In 2005 and 2008, Nigeria was positioned thirteenth and seventeenth individually out of

146 nations by Straightforwardness Worldwide Corruption Observation List [TICPI]. In

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spite of the fact that the 2007 positioning set Nigeria as the 32nd most degenerate nation

out of 147 nations by TICPI, Nigeria is the 136 minimum degenerate country out of 175

nations, as indicated by the 2016 Corruption Observations File revealed by Straight

forwardness Universal. Corruption Rank in Nigeria found the middle value of 119.14

from 1996 until 2016, corruption still remains a major issue in Nigeria. It is additionally a

worldwide issue with certain dangerous impacts. In any case, the rate of corruption in

Nigeria is so disturbing. Corruption fills in as one of the significant reason for a work in

progress in Nigeria. Most monetary, political and social issues in immature social orders

like Nigeria exude from corruption which show from multiple points of view, for

example, absence of responsibility, deficient financing of projects, preoccupation of open

assets to private possession, distinctive sorts of separations, ethnicity, absence of ability,

wastefulness and so forth. The issue of corruption as a wonder is verifiably established in

the nation's political economy.

Nigeria in the wake of picking up autonomy in October 1960 has had arrangement

of pioneers and move of energy, Amid the military time Nigeria experienced corruption

at its pick, investigate a Babangida amid his own residency he plundered and

stole .Babangida can be labeled as a holy person contrasted with general Sani Abacha

plunder as far as corruption. .

Today, Nigerians extol and endure sick gotten riches which truly is cash stolen

from open assets. This is a pointer to the way that corruption is basic in Nigeria. It has

swarmed into each aspect s of the general public; the family, the congregation and even

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the conventional frameworks are not let well enough alone for this infectious sickness.

Corruption along these lines, influences the formative endeavors of progressive

government in Nigeria. This has been in charge of the non–completion of undertakings

and projects that would have help in enhancing the lives of Nigerians. Corruption has

been decreed to be in charge of Nigeria's underdevelopment.

Hodder (2000) characterize advancement as a financial, social or political process

which brings about an aggregate ascent in the apparent way of life for an expanding

extent of a populace". This definition proposes that an expanded way of life includes a

social and political process and also a financial one. This change in the way of life must

be both expanding and in the long term as opposed to simply impermanent. Advancement

which must be viewed as a general subjective change in the lives of a people or a political

group is relied upon to address the issues of social welfare, value and equity. As per the

UNDP, the focal motivation behind advancement ought to be the production of an

empowering and enabling condition in which every one of the people, including poor

people and the helpless can appreciate solid and innovative lives (UNDP, 1997).

Despite the huge promise of development capability and an enormous array of

resources, the Nigerian economy has witnessed a period of stagnant economic growth

(Dahida & Akangbe, 2013). This has been partly blamed on corruption and gross

mismanagement of the country’s vast resources. The country has witnessed a depletion of

its material resources for private benefit, buttressed by unmitigated levels of personal

aggrandizement and self-glorification on the part of leaders at various levels. It begs the

question, that despite her position as number eight in the list of countries that export

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crude oil into the international market, more than 70 percent of the Nigerian population

are still classified as poor (Ogbeidi, 2012).

Late President Musa Yaradua in his own wisdom tried to tackle corruption

himself but due to his untimely death, he could not drive is goals and policies for Nigeria.

His death brought in Jonathan’s administration which gave Nigerian high hopes. But

instead it proved that it’s not only a harbor of corruption but also a major demonstrator as

his government remains one of the most corrupt civilian government.

1.2 STATEMENT OF THE PROBLEM

One of the most fundamental problems facing Nigeria today is corruption.

Corruption has not only weakened the moral integrity of Nigeria, it has also caused

destruction in politics. Corruption in Nigeria is so devastating and disturbing that it has

practically affected every sector of the economy.

According to Uzochukwu (2013) in 2012, Transparency International deemed

Nigeria one of the most corrupt nations in the world. In that year, the country ranked

139th out of the 176 surveyed countries, making Nigeria the 37th most corrupt nation. In

2014 ranking, Nigeria was ranked 136 out of 174 surveyed countries (Transparency

International, 2014). The result shows that there is improvement, though things are still

bad. Nigeria was the 38th most corrupt country in the world in 2014.

Furthermore, previous researchers have carried out similar studies on corruption

in Nigeria. It has been discovered that corruption has been the biggest obstacle to

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Nigeria’s socio-economic development and the welfare of citizens. It has become the

major problem in the pursuit of sustainable growth and development in the country.

Therefore, this study will attempt to address the causes and the possible solution to

corruption has adversely affected Nigeria’s economy. Financial resources which would

have been used to facilitate the country’s economic development have been diverted into

private bank accounts abroad. More worrisome is the fact that these stolen funds meant

for economic development are not invested in the country to create employment for the

unemployed citizens of the country. This is indeed the reason for high level of poverty,

insecurity and widespread diseases. Nigeria, in spite of its phenomenal earnings from the

exploration and exportation of crude oil, its great human resources and other extensive

potentialities, is still predominantly poor as a result of corruption. The poverty level in

Nigeria is worsening as unemployment is soaring on daily basis. The quality of

education, health and other social services is dwindling all over the country. The

agricultural, general merchandising and other social services which, hitherto, provided

employment for the ordinary citizens have become very unattractive. Corruption

undermines Nigeria’s economic development by generating considerable distortions and

inefficiency. In the private sector, corruption increases the cost of business through the

price of illicit payments. It raises the management cost of negotiating with officials and

increases the risk of agreements being breached. The Human Right Watch (2007)

comments that, “despite record-setting government revenues in recent years, corruption

and mismanagement remain a major cause of Nigeria’s failure to make meaningful

progress in improving the lot of ordinary Nigerians.” It has been argued by observers of

the Nigerian political process in recent times that in the face of hardship, believed to have

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been propelled by widespread corruption, it will be a hard task to convince an average

Nigerian to continue to make unending sacrifices and swallow without a limit the bitter

economic pills which is not a natural consequence but an inevitably effect of a corrupt

system. The near total collapse of social infrastructure and other social institutions could

easily be linked to corruption. This has resulted to retarded and stunted development.

Official corruption in Nigeria siphons off money intended for the development of the

country. Apart from making profit on investments from Nigeria’s stolen billions of

dollars, European countries and banks turn around and loan such money to Nigeria and

other African countries at exorbitant rates. Much money is spent in the payment of

interest on such loans than is spent on health and education combined. The critical issue

in economic development is not whether corruption happens, but whether the stolen

money is invested in the country. Massive corruption (as it relates to stealing of public

funds) and economic development can co-exist, if the stolen money is invested in the

expansion of the country’s productive sector. This reminds one of Igwes observation. “In

Nigeria, the post-independence elite initially invested their new-found wealth

domestically only to see those assets appropriated by incoming administrations. The likes

of Sani Abacha who sent an estimated four billion dollars abroad were careful not to

repeat the mistake. The thinking is always: I am certain to be probed once I leave power,

so I had better put everything abroad.” (Igwe).

1.3 RESEARCH QUESTIONS

For this research to achieve its aim, the following questions should be asked:

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1. To what extent has corruption affected Nigeria’s national development?

2. How successful was anti- corruption reforms under Goodluck Jonathan’s

administration?

1.4 OBJECTIVES OF THE STUDY

1. To examine the extent corruption has affected Nigeria’s national development.

2. To analyze how successful anti-corruption reforms under Goodluck Jonathan’s

administration

1.5 SCOPE OF THE STUDY

The scope of the research is limited to the relationship between corruption and

underdevelopment in Nigeria which focuses on Good luck Ebele Jonathan’s regime from

2011 to 2015.

From scholars and analysts in the field of social sciences and political science in

particular. Also, insufficient fund on the part of the researcher is another constraint. Time

was another restriction. The duration of time given to the researcher to carry out the

research work was too short as the researcher has other academic commitments to pursue.

So the time pressure affected the scope of the work.

1.6 JUSTIFICATION OF STUDY

This study is relevant in that it contributes to the existing body of knowledge.

Practically, this research work will be a guide to policy makers, economists, political

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analysts, policy implementers, and researchers. In other words, it will serve as a tool for

the government and private organizations on how to curb and prevent corrupt practices

and engender development in Nigeria. Theoretically, the study will close the existing gap

in the literature in corruption and by so doing; add to the existing volume of knowledge

on the connection between corruption and underdevelopment and how it can be curbed.

1.7 METHODOLOGY

This research work will employ descriptive and analytical methods. The methods would

be used in the background of the study also. The use of secondary sources of data will be

employed. Secondary sources of data from books, journals, articles, newspapers and

other written reliable documents will be employed. The research work will also be non-

statistical.

1.8 LIMITATION OF STUDY

This research work will employ descriptive and analytical methods. The methods would

be used in the background of the study also. The use of secondary sources of data will be

employed secondary sources of data from books, journals articles newspapers and other

written reliable documents will be employed. The research is non-statistical

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1.9 DEFINITION OF TERMS/CONCEPTUAL CLARIFICATION

 Corruption: In this study, Corruption can be defined from various angles but it

anchors on the general fact that it is a multidimensional act of misconduct.

Corruption can be term as a form of dishonest or unethical conduct by a person

entrusted with a position of authority, often to acquire personal benefit.

Corruption bothers mostly on social financial, institutional, political and other

misbehaviors that negatively lead to miscarriage of justice, inequity and low level

of development employment in a society or country. Corruption is referred to as a

form of human rights violation though acts of corruption is worldwide

because of its multidimensional nature ,yet historical facts have proved that it is

more rampant in developing and countries that bare backward, mostly in Africa

and some Asian countries where their leaders use national financial and

material resources for private gains

I. Political corruption: Corruption is a concept covering culture, we have

political corruption, and economic corruption e.t.c.you hardly find a state that

experiences political corruption that wouldn’t lead to economic corruption. Looking at

Sani Abacha, it was because of the level of political power that he had.

Political corruption is the use of powers by government officials for illegitimate

private gain. An illegal act an office holder constitutes political corruption occurs only if

the act is directly related to their official duties, is done under the color of law or involves

trading in influence.

Underdevelopment: relating to international development, reflects a broad

condition or phenomena defined and critiqued by theorists in fields such as economics,

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development studies, and post-colonial studies. Used primarily to distinguish states along

benchmarks concerning human development—such as macro-economic growth, health,

education, and standards of living—an "underdeveloped" state is framed as the antithesis

of a "developed", modern, or industrialized state. Popularized, dominant images of

underdeveloped states include those that have less stable economies, less democratic

political regimes, greater poverty, malnutrition, and poorer public health and education

systems.

Economic corruption:

Economic corruption is the use of Political power to foster economic corruption

such as money laundering, siphoning of public funds, stacking of national treasures in

foreign accounts (Swiss account).

Nigeria has experienced series of corruption cases but theirs is not as pronounce

as the once we have in the 3rd republic and the preceding ones in the fourth republic that

we are in now. “Abdul Salam, Ibrahim Babangida, Abacha “it is believed that the

opportunity they had in power gave them the go ahead to steal money, but then following

the successful transition of power that snow balled democracy (from military to civilian

government) in 1999 into Nigeria political climate. Then we have the fourth republic

headed by Olusegun Obasanjo, due to past experience this made in raise different anti-

graft commission to tackle the menace called corruption. He raised two agencies EFCC

and ICPC. The question is to what extent have this agencies been able to tackle

corruption, even after Olusegun Obasanjo’s tenure the incoming government inherited

the same issue, talking about President Musa Yar ’Adua. Musa Yar ‘Adua in his own

wisdom tried to tackle corruption himself but due to his untimely death, he could not

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drive is goals and policies for Nigeria. His death brought in Jonathan’s administration

which lauded the expectations of Nigerians. But instead it proved that it’s not only a

harbour of corruption but also a major demonstrator as his government remains one of the

most corrupt civilian governments. I am carrying out this research

Corruption is a social menace that has eaten deep into the political, economic, and

social and development of the Nigeria. It has been acknowledged that corruption and its

practices are both common and general in both public and private sectors of Nigerian

economy. It affects the routine practices of governance both in public and private sectors,

and it adulterates the business environment generally. It also weakens the integrity of

government and public institutions.

The different definitions of culture are based on the differences in the orientation

of people. According to Shamija (2006) corruption is a mechanism adopted by Nigerians

to cope with or avert poverty, particularly in the urban centres where the high cost of

living may be an encouragement for corruption. In a situation where there is inadequate

wages and non-payment of salaries in most cases to workers, corruption provides a means

of increasing one’s legitimate income. To justify the above, Ayua (2001) notes that, there

are low and declining civil service salaries and promotion that is not based on

performance, dysfunctional government budgets and delays in the release of budgets

funds, including pay. He asserts that under such conditions and circumstances, officials

deliberately refuse to act or delay action in order to coerce some payment out of citizens

or firms. In the words of Obasanjo (2009), “corruption has been responsible for the

political instability of successive government since the First Republic. Every coup since

then has been in the name of stamping out the disease called corruption. Unfortunately,

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the cure turned out to be worse than the disease. And Nigeria has been worse for it.

Nigeria’s external image took a serious criticism, as our beloved country began to feature

on every corruption catalogue”.

Nigeria is a country that is naturally empowered with human and material

resources but she is poor in the ocean of plenty this hinges on the inability of leaders

and the citizens to understand democratic principles such as due process ,rule of

law ,good governance and accountability ,whereas corruption is the antithesis of

democratic ideals where services rendered is for the people, the corrupt sees only what

will profit himself, corruption is endemic and rooted in Nigeria and has been singled out

as the bane of the nation between 2011-2015, corruption was standing tall and untouched

.the leadership lacked the will and the sincerity to tackle the problem with and the

sincerity to tackle the problem with the seriousness it deserves, they only talked but

hardly walked the talk. Corruption has denied the nation the expected gains of it

moderate investments in various sectors it has , without doubt become systemic in

Nigerian where the political economic system has been so soaked in the blood of

graft that even the social and cultural ways of many Nigerians have also become

corrupted .in the Nigeria political economy ,many Nigerians have also become socio

culturally corrupt.

This statement shows the commonality of corruption in Nigeria which has pervaded all

the sectors of the economy, and other aspect of the society. For instance, beyond the mere

enjoyment of public funds, the increase of wealth by illegal means does not seem to

trouble Nigerians according to Wikipedia Political corruption is the use of powers by

government officials for illegitimate private gain. An illegal act by an officeholder

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constitutes political corruption only if the act is directly related to their official duties, is

done under color of law or involves trading in influence.

Forms of corruption vary, but include bribery, extortion, cronyism, nepotism,

gombeenism, parochialism patronage, influence peddling, graft, and embezzlement.

Corruption may facilitate criminal enterprise such as drug trafficking, money laundering,

and human trafficking, though is not restricted to these activities. Misuse of government

power for other purposes, such as repression of political opponents and general police

brutality, is also considered political corruption.

2. Development: development is a succession of deep social changes in which inevitably

acknowledge technological transformation. For a country or a state to attain the

meaningful level of transformation there is need for technological innovation and

transformation development should not be measured on the basis of expansion of material

wealth or economic growth but rather higher percentage of technological transformation

should be put into consideration Sustainable Development.

REFERENCES

Ademola, A. (2011). Endangering Good Governance for Sustainable Democracy: The

Continuity Struggle against Corruption in Nigeria. Journal of research in Peace,

Gender and Development, pp. 307 – 314.

Gbenga Lawal. (2007). Corruption and Development in Africa: Challenges for Political

and Economic. Humanity & Social Sciences Journal, 2 (1): 01-07.

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Rodney. W. (1982). how europe underdeveloped Africa. Enugu: Ikenga.

Shleifer, A. V. (1993). corruption. The Journal of Economics, 599-617.

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 CHAPTER TWO

LITERATURE REVIEW AND THEORETICAL FRAMEWORK

2.1 INTRODUCTION

Corruption is one of the major hindrances militating against rapid development of

the Nigerian economy. Nigeria is a country blessed with enough resources to the extent

that some of these resources have never been extracted or tapped by the government e.g.

gold, some resources are ignored by the government since the discovery of oil well, such

as cocoa, timber, etc, while crude oil alone is has gotten the biggest attention and has

been the largest source of income to the government for over forty years.

Corruption has been an infection affecting many nations in the world especially

the developing countries. It has various repercussions for both the developed and

developing economies. Corruption is a disturbance to development and thus increases the

level of deficiency in the economy of any country that finds itself soaked in corrupt

practices. Hence, corruption creates ambiguity and fall in the growth and development

potential of any country.

Literatures on the issue of corruption are abound because of its impact on

economic development but there exist little research literatures on the concepts,

determinants, severity and implications of corruption on economic development. The

reason for this is not farfetched; it is because data are not readily available, particularly

when the need to pin- point the size of corruption and the people that engaged in it arises.

This research work is thus an addition to other studies in the subject matter. This chapter

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extensively reviews previous related studies and ideas that shed light on the key concepts

under discussion – corruption practices and development. The essence of this is therefore

to create a bond between related previous studies and this research work. Attempt is also

made to broaden this study with relevant theories in the field of study.

2.2 CONCEPTUALIZATION

2.2.1 Concept of Corruption

Different scholars attempted a working concept for corruption from their various

disciplines. Although there is no comprehensive or wide ranging definition as to what

constitutes corrupt practices, the most prominent concepts are of the same common

emphasis on the abuse of public power or position for personal advantage.

However, all of the working definitions are almost the same. The most relevant

definition to this paper is the one given by World Bank, Akindele (1996). The World

Bank defines corruption as the abuse of public office for personal profit or gain. Akindele

(1996) defines it as any form of joint behavior or transaction where both the

authority/office holder can respectively make use of the inducement of each other by

some loot to grant illegal treatment or favour against the given regulations and interest of

specific group or society (or public). In short, corruption covers such acts as:

 Use of one’s office for personal financial advantage,

 Gratification,

 Influence peddling, insincerity in advice with the aim of gaining some personal

advantage.

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 A simple dictionary definition of the subject matter refers to it as “an mutilation

of good feature and moral principles” (Lewis, 2006). According to the World Bank,

corruption is the abuse of public office for private profit for the benefit of the holder of

the office or some third party in relations to the office holder. Viewed from these

definitions, political corruption can be broadly understood as unprincipled political

behaviour, which violates the norms of the system (Heidenheimer and Johnston, 1993: 6).

Basically, political corruption can be for private and group improvement and for

authority preservation purposes. Often, these two forms of political corruption are

connected. Political corruption usually encompasses ill-treatments by government

officials such as embezzlement and cronyism, as well as abuses such as bribery,

extortion, influence peddling, and fraud, to mention but a few. In this regard, corruption

is a threat to good governance, sustainable economic development and democratic

process.

In an detailed explanation, Alatas (1990) divided corruption into seven different

separate types: autogenic, defensive, extortive, diatribe, nepotistic, supportive, and

transitive. Autogenic corruption is self-generating and typically involves only the

perpetrator. Defensive corruption involves situations where a person needing a critical

service is compelled to bribe in order to prevent horrible consequences being inflicted on

his interests. Extortive corruption is the behavior of a person demanding private reward in

exchange for services. Diatribe corruption entails the offer of goods or services without a

direct link to any particular favor at the present, but in anticipation of future situations

when the favor may be required. Nepotistic corruption refers to the favored treatment of,

or unjustified appointment of family or love ones to public office, in violation of the

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accepted principles. The supportive type usually does not involve money or immediate

personal increases, but involves actions taken to strengthen the existing corruption.

Finally, transitive corruption refers to situations where the two bodies are mutual and

willing parties in the corrupt practices to the benefit the both parties.

Osoba (1998, p.378) give his own conception of corruption as an “anti-social

behaviour giving bad benefits contrary to legal and moral guidelines, and which weakens

the authorities” to improve the living conditions of the people. Dike (2011) in his studies

notes that though some of these concepts of corruption have been in existence for over

decades, the recent development in Nigeria where discoveries of stolen public funds by

some official in the government offices, make these definitions very satisfactory. He

further observes that corruption is probably the main means of gathering sudden wealth

in Nigeria. Corruption occurs in different forms, and it has contributed immensely to the

deficiency and misery of a large segment of the Nigerian population. Corruption is the

colonization of fraudulence; the shameless festivity of impunity, which pollutes the

ethical sanitation of a society (Ogbunwezeh, 2005). Corruption is a worldwide

phenomenon, but prominent in countries of the third world, particularly in Africa.

In fact, corruption is exemplified by a very wide and diverse array of phenomena

of which political corruption is also one of its kinds. Political corruption is the abuse of

entrusted power by political leaders for private gain, with the objective of increasing

power or wealth (Imohe, 2005). Political corruption need not involve money changing

hands; it may take the form of ‘trading in influence’ or granting favours that poison

politics and threaten democracy. It occurs when the politicians and political decision-

makers, who are entitled to formulate, establish and implement the laws in the name of

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the people, are themselves corrupt. It also takes place when policy formulation and

legislation is tailored to benefit politicians and legislators.

Political corruption is the use of official power and government resources for

sordid and scandalous gains which are private. Political corruption is not a recent

happening that pervades the Nigerian State: since the existence of modern public

administration in the country, there have been cases of official misuse of resources for

personal gains (Osoba, 1996). Corruption patronizes, and encourages the forces of social

and economic backwarness, handing them an unwarranted freedom to bring problems on

the economic aspect of the society. It becomes initiated into the social and economic

sector, when the whole society timidly smiles at impunity; tolerates unmerited stations;

celebrates indiscipline; and encourages the flamboyant arrogance of unearned gains

(Ogbunwezeh, 2005).

To this end, every society that want to progress must do constantly battle with the

constant endeavor of pessimistic forces to bring the social and economic structure under

its Inglorious supremacy This is because corruption as a bad social, political and

economic factor which often prevents development of a nation, just as poverty stand has

hindrance against enduring democracy.

2.2.2 Types of Corruption

Some researchers have taken broader steps in the discussion of corruption by

dividing it into several forms and sub-divisions. These discussion is according to Taylor

(2010) and it’s include:

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 Political corruption: It occurs when politicians and political decision-makers, who

are entitled to formulate, establish, and implement the laws on behalf of the people,

are themselves corrupt. It also takes place when policy formulation and legislation is

tailored to benefit politicians and legislators.

 Bureaucratic corruption: This occurs in the public administration or the

implementation end of politics. It is the kind of corruption the citizens encounter daily

at places like the hospitals, schools, local licensing offices, police stations, the various

government ministries etc.. Bureaucratic corruption occurs when one obtains a

business from public sector through inappropriate procedure.

 Electoral corruption: This includes promises of office special favours, coercion,

intimidation, and interference with freedom of election, buying of votes,

disenfranchisement, snatching of ballot boxes, victimizing and maiming, mutilation

of election results in favour of losers and votes turn up in area where votes were not

cast.

 Bribery: The payment (in money or kind) that is taken or given in a corrupt

relationship. These include "kickbacks", "gratuities", "pay off", “sweeteners”,

“greasing palms” “scratching of back"

 Fraud: This involves some kind of trickery, swindle and deceit counterfeiting,

racketing, smuggling and forgery.

 Embezzlement: This is seen as the theft of public resources by public officials. It is

when an official of the state steals from the public institution in which he/she is

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 employed. In Nigeria the embezzlement of public fund is one of the most common

ways of wealth accumulation, perhaps, due to lack of strict regulatory systems.

 Extortion: This is money and other resources extracted by the use of coercion,

violence, or threats to use force. It is often seen as extraction from below.

 Favoritism: This is mechanism of power abuse implying a highly biased of state

resources. However, many see this as a natural human proclivity to favour friends,

family, and anybody close and trusted.

 Nepotism: This is a special sort of favoritism in which a public office holder prefers

his/her kinfolk and family members. Nepotism occurs when one is exempted from the

application of certain laws or regulations or given undue preference in the allocation

of scarce resources (Amundsen, 1997; and Girling, 1997).

These types of corrupt practices are very widespread and extensive, to the fact

that it is now seen as an acceptable norms and culture in the present day society.

In addition Tolu and Ogunro (2012) identified some other two types of

corruptions which are as follows:

 Moral Corruption: This is exhibited in sexual pervasiveness, greed especially in

inter- personal relationships, loose tongue i.e. uncontrollable tongue such that leaks

secrets or slanders or busy-body, indecent dressing or appearance etc.

 Economic Corruption: Examples of economic corruptions are manufacturing fake

drugs, adulteration of drinks, piracy i.e. copying another person’s intellectual work to

illegally enrich oneself (Plagiarism), and fraud at all levels etc.

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 The above mentioned forms of corruption does not drain what is in literature,

there are still some other types of corruptions such as educational corruption, religious

corruption, family corruption, etc.

2.2.3 The Causes of Corruption

Some other researchers also investigated the fundamental factors that causes,

engendered and sustained corrupt practices. This according to Ajie, and Wokekoro,

(2012) includes:

 The weak institutions of government;

 Political office as the primary means of gaining access to wealth;

 Conflict between changing moral codes;

 The weakness of social and governmental enforcement mechanism;

 The absence of a strong sense of national community;

 Dysfunctional legal system;

 Less effective government works with slow budget procedures;

 Lack of transparency;

 The great inequality in the distribution of wealth;

 Low salaries and poor working conditions, with few incentives and rewards

for efficient and effective performance;

 According to Dike (2003), the pressure of 'polygamous family' and extended

family system, and pressure to meet family needs;

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  The culture and bizarre value systems of the society. Becoming corrupt is

almost unavoidable, because immorality is relaxed in the society, and many

people struggle for survival without assistance from the state;

 Widespread of poverty.

Because of the persistent nature of corruption, Nigerians have instituted the

culture of comfortable and ostentatious living that expects much from "big men,"

extended family pressures (Maduagwe, 1996), loyalties, and competitive ethnicity. The

country Nigeria is one of the very few countries in the world where a man's source of

wealth is of no concern to his families/neighbours, the public or the government. Once a

man is able to spend money, religious gathering like Churches, Mosques pray for him, he

collects chieftaincy titles with those who govern. (Ubeku, 1991). The causes of

corruption in Nigeria cannot be different significantly, if at all, from the above factors.

2.2.4 Effect of Corruption

Tanzi (1998) provides a useful summary of the adverse effects of corruption

quantified in recent studies. These include:

 Reducing investment and hence growth, by increasing costs and uncertainty.

 Reducing spending on health and education, because these expenditures do not

lend themselves easily to corrupt practices on the part of those who control the

budget strings.

 Reducing spending on operations and maintenance for reasons similar to the point

above.

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  Increasing public investment because public projects are easier to manipulate by

public officials and private bidders.

 Reducing the productivity of public investment and infrastructure.

 Reducing tax revenues due to corrupt tax and customs administration; and

 Reducing direct foreign investment because corruption acts as a tax, the less

predictable the level of corruption, the greater its impact on foreign investment.

2.2.5 Concept of Development and Economic Development

Rodney (1992:1) writes that “The confusing nature of development has made it

difficult to advance a accurate meaning”. In fact there are numerous perspectives as to

what the concept of development is all about. There is the perspective that sees it from

the economic perspectives, while others see it as a concept that is multidimensional,

meaning that development is more than the economic sphere.

Development is a many-sided process, since, at the level of the individual, it

implies increased skill and capacity, greater freedom, creativity, self discipline,

responsibility and material well-being. Development in a dimension is a relative concept

according to Hettne (2010). Nevertheless, it is possible to arrive at some specific factors

of development that are acceptable. For instance, it is easy to conclude that every society

aspires to strong, efficient and good economic and political institutions that assist the

cravings of their people and give responses to them. It is also possible to claim that in

each society there is always one to more minimum expectations which all members share.

25
These include access to adequate health facilities, access to safe drinking water,

qualitative education, and equal opportunity for all citizens in public affairs where

competition based on advantage is upheld over and above other factors. All these are

factors and values that exceed cultural and political boundaries (Aliyu, 2013:4)

One knows about cultural, social, economic, political, and even religious

development as if it can provide a proper analysis of development without considering

development from a deep perspective. For instance, Gopinath (2008:91) in his research

claims that development can only be measured in terms of funds, and consequently, a

developing country is one in which “there is a significant potential to raise the standard of

living per capita” of its people above the medium level.

Mirakhor and Askari (2010:21) write that development can be said to be “rapid

growth, qualitative enhancement, and expansion in the capabilities, capacities, and

choices of citizens, states or a nations”. A different line that infuses these meaning of

development concerns the recognition that improvement on the quality of life of all

members of human society is the fundamental goal of development.

According to the studies of Meier (1988), development is the process of rising to

the highest worth in the Gross National Product through accumulating resources, capital

and industrialization. Development can also be said to be the capability of a country to

raise its stagnant economy to a level where it can generate and sustain an annual increase

in its Gross National Product (GNP). Additionally, Meier further stated that development

is not limited to the process of industrialisation in a nation or group, but encompasses

modernization, productivity, social and economic equalization, improved institutions,

26
advanced technology and attitudes (Meier, 1988). In the same light, Oghator & Okoobo

(2000) reported in their studies that development goes beyond the increase in per-capita

income, but also includes a expansion of sustainable improvements in the living standard

of the people in that given country, which is guaranteed through the availability of

gainful employment, coupled with the availability of social and economic infrastructures.

According to Ajagun (2003), he pointed out that development is a state of

improvement which makes life better in various aspects, including the economic,

administrative, political, social, and other aspects. This implies that development is not

about a particular aspect but it is wide, better still it can be said to be multi-dimensional

depending on the point of contention.

2.3 THEORETICAL FRAMEWORK

This section highlights some basic theories that have been used to support the

effects of corruption on economic growth. Hence, in this research, two of the theories

were considered which are the rational choice theory and organizational culture theory.

2.3.1 Rational Choice Theory

This theory was re-awakened and popularised by a theorist in the year 1978,

Rose-Ackerman. According to him, the fundamental chain is that of an individual making

a bounded decision that is rational leads to a predetermined outcome. Close to the

rational choice literature is the corrupt official who as an individual tries to maximize his

or her convenience. The individual is described as a rationally calculating person who

decides to become corrupt when its expected merits outweigh its expected demerits with

27
the mind of possible penalty and the chance of being caught. The theory claims that

public officials as an individual are corrupt for a simple reason that the potential profits

of corruption exceed the potential costs (Graaf, 2003). As Klitgaard (1998: 70) states, if

the advantages of corruption minus the probability of being caught multiply by its

penalties are greater than the advantages of not being caught, then an individual will be

bound rationally to choose corruption. Thou, the theory can then be extended when

condition that influence the cost-benefit calculations are taken into account. For example,

trust can play an important role. When the state cannot be trusted to manage private

property transfers, corruption might become more appealing (Gambetta 1993). Also, trust

within close personal relationships or related ones increases the chance of getting the

benefits from the conveyed corrupt ‘services’ or reduces the chance of getting caught.

In this kind of theory, the actions of corrupt individual been in charge of a public

offices are caused by a rational, conscious and deliberate process of the said individual.

In another form, agents that autonomous are to make more or less rational means-end

calculations based on an assumption. This is different from other theories where behavior

is explained by causes beyond individual authority.

The rational choice theory has its own advantage which has relatively close focal

point (Schinkel, 2004: 11). Instead of looking for causal factors, it concentrates on a

specific situation of a corrupt agent who calculates pros and cons. The theory starts from

the moment a corrupt official start to think in his mind whether to become corrupt or not.

The question then becomes: why are some officials corrupt in many Western countries

while most are not? If some thinks that corruption is a good deal, are the others, by not

becoming corrupt, have a wrong thinking? Thus, rational choice theories lead to a

28
dialogue on corruption control that reduces the costs of corruption and also reduces its

benefits. Since the gains from been in corruption are much harder to control, most of the

focus is on the factors of corruption. These factors can be increased by improving the

chances of getting caught and imposing steeper penalties. This can easily lead to a

dialogue asking for a system of control based on massive information gathering, and

hostile enforcement of a wide array of criminal and executive approvals (Anechiarico &

Jacobs, 1996).

2.3.2 Organizational Culture Theory

This theory was expounded by Rose-Ackerman in 1978. The emphasis is on the

culture and structure of the organization within which an individual is working. The

underlying postulation seems to be that a causal path from a culture – leads to a certain

mental state and that mental state leads to corrupt behavior. Failure in the “suitable

machinery” of governance, not faulty character, leads public individuals in official

position to act corruptly. Therefore, it accounts for the context corrupt acts occur in. For

example, Punch claims (2000:304), talking about corruption within police departments

around the world: “If we have a check into these actions then it is plain that we are no

longer dealing with people seeking solely personal expansion but with group behavior

rooted in established activities and/or tremendous practices that have to be found within

the structures of police work and the police organization.” Punch concludes (2000: 317):

“The allegation is that in dealing with corruption and other forms of police deviance, it is

vital to focus on group dynamics, the growth from minor to serious deviance, and on the

negative elements in the police culture.

29
 Once again, in this theory there is a factor from a certain society, which leads to a

mental state, and that also leads to corrupt behavior. We can also put it that this theory

describes certain influence under which corruption occurs. It is more a matter of

describing ‘influencing factors’ which, in some cases not all people in the organization

become corrupt,. This type of theory is not so much interested in the corrupt individuals

holding official post, but in the relative features that make for the setting of corruption.

Of course, many good arguments involving economic, natural or social factors, for

instance, show that institutions determine, in large part, the decisions and actions of

people (Graaf, 2003).

This theory is advantageous as it describes certain conditions under which

corruption crops up. Also, it establishes the fact that corruption is rooted in the society’s

behavior that have to be located within the structures and culture of the society. There is a

causal path from a certain culture that leads to a rational state and this demonstrates

corruptive behavior. However, this theory is questionable because it is not all people in

the society that are corrupt. The theory is not so much interested in the corrupt

individuals in the society but in the related features that make for the surroundings of

corruption.

This paper adopts organizational culture theory because institutions of

government in Nigeria are faulty, weak and porous. Hence, corruption occurs in every

facet of life.

2.3.3 Policy Implications of the theory

30
 These theories, believes that economic growth is linked with increase in

productivity and reduced level of corruption which ultimately result to a faster speed of

development and extra investment in human capital development. The theories envisaged

that externalities on corruption fight from corruption free society will help to develop and

maintain a competitive advantage in the development of Nigeria.

2.4 REVIEW OF RELATED STUDIES

A few of researchers has discussed the level of corruption on economic growth in

both developed and developing countries. Such authors include Abiodun (2007) that use

descriptive survey and content analysis to investigate the effect of corruption and

economic reforms on economic growth and development in Nigeria. It was revealed that

there have been significant reductions in the level of corruption in Nigeria through the

introduction of the anti-corruption. But the study also found negative effect between the

levels of corruption and economic growth, thereby making it difficult for Nigeria to

develop fast. This means that corruption in Nigeria negatively affect economic growth,

efficiency and development despite the large numbers resources in the country. This is

also because corruption reduces or create negative image in a nation and as well losses

much needed revenue.

Rotini and Ise, (2013) in their study which is targeted to uncover relationship

between corruption and economic growth in Nigeria, the study observed that corruption

affects economic growth. The study fails to establish the level of impact of corruption on

economic growth by stating whether it is positive or negative. Adewale, (2011)

31
investigated the effects of corruption in Nigeria revealed that there is a negative

relationship between corruption and output growth and development in Nigeria. The way-

out of this is that Nigeria government should introduce a re-orientation program to

educate people at the federal level on the essential need to eliminate corruption in all

sectors of Nigeria economy and socio-political system.

Akinpelu, Ogunseye, Bada, and Agbayangi (2013) examined the determinants of

corruption in Nigeria using co-integration test and vector error correction model. The

study discovered that there is a long-run relationship between conception and the social

economic variables in Nigeria. This study falls to establish the level of relationship like

whether significant positive or negative relationship which has policy implication in the

short and long run. Mnhuda (2013) investigating the relationship between corruption,

poverty and economic growth in Nigeria. The study employed regression analysis and

granger causality test, it was discovered that there is an existence of co- integration

chance tanging a long run causality relationship between corruption, poverty and

economic growth in Nigeria.

Nevertheless, some authors such as Joseph, Osunyikanmi (2009), Tolu and

Ogunro (2012), Adewale (2011) among others have examined the issue of corruption,

provided some definitions of corruption, and have also analyzed the determinants and

implications of corruption. According to Ngouo (2000) and the World Bank, corruption is

the exploitation of public positions for private benefits. She also stated that the lack of

any civil spirit among all categories of civil servants leads to corruption and

misappropriation of public funds. Akindele (2005) sees corruption as behavior, which

32
deviates from the formal rules of governing the actions of someone in a position of

authority.

According to Osunyinkanmi (2009), the term corruption is synonymous to the

terms fraud, bribery, settlement etc. In his explanation, the settlement in corruption

perception parlance became a euphemism for bribery in Nigeria during the Babangida

administration in 1989. Supporting the view of Osunyinkanmi is Abbas, in his response

to Dr. Antonio Maria Costa’s submission that Chief Olusegun Obasanjo former president

from 1999–2007 must be commended for championing the cause of corruption fight in

the country, Dikko (2011) opined that Report so far, indicated from May 1999–mid 2006,

the monies stolen within the period under review, was more than what our past leaders

stole put together from independence to before handing over to his democratically elected

government.

Adewale (2011) explained that corruption is an act of diverting the resources that

should have been used for developmental purposes of the society to private or personal

use. This accumulation of the nation’s economic resources for personal benefits had

variously contributed to the leakage of capital from Nigeria for illegal deposits abroad.

He further stated that corruption has a crowding out effect on the growth and

development of the country. It’s contributing effects on poverty and poor infrastructural

development is more worrying. Some schools of thought have also highlighted the

factors that are responsible for corrupt practices in a society. This view was corroborated

by Akindele (1990) who stated that corruption exists everywhere, which means that

corruption has no racial or regional boundary. Adewale (2011) further exerts that the

most plausible arguments in this area would seem to be that corruption is intractably

33
determined by the stage of development and the type of government that exists in a

society or nation. In most of the highly corrupt countries like Nigeria, government

bureaucracies create conducive atmosphere for corrupt practises.

Authors like Rose (1990), Tanzi et al (2006) and Obadan (2001), have noted that

governments of certain countries for political or other reasons create incentives for

bribery and corruption and are sometimes directly involve in the corrupt practices. In

some extreme cases, the government itself practices corruption in order to have their way

through the legislative arms. This practice is quite common in Nigeria. Several authors

who studied corruption have concluded that corruption has negative impacts on the

growth and development of any nation. According to Ekpo and Egenedo (1985), Obadan

(2001) and Adewale (2011), corrupt practices inherently introduce distortions in the

economic system; it impairs hard work, diligence and efficiency. It is capable of diverting

resources meant for the developm0ent of the society to private or personal use. They

maintain that corruption does not give room for honest selection processes and also

distort prices.

Adewale (2011) discovered a strong significant negative relationship between

corruption and output growth in Nigeria. He undertook an empirical investigation of the

relationship between a numbers of key variables in Nigeria. After carrying out a test of

stationary and co integration properties on the variables, he further estimated the

econometric parameters of the variables which included Gross Domestic Product (GDP)

as the dependent variable and Gross Capital Formation (CAPL), Money Supply (MS),

Public Domestic Investment (PINV), Corruption Perception Index (CPI) External Debt

(EXTD) and Unemployment Rate (UNEMPL) as the explanatory variables, corruption

34
index external debt and unemployment is negative implying that it is consistent with the

hypothesis that corruption retards growth. He argued that, corruption retards economic

growth in Nigeria. In order words it has a crowding-out effect on growth.

35
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Aluko, M. A. O. (2002). The institutionalization of corruption and its impact on political

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 CHAPTER THREE

CORRUPTION AND DEVELOPMENT IN NIGERIA

3.1 How successful was anti- corruption reforms under Goodluck Jonathan’s

administration?

There are many different attempts to fight corruption by different successive

governments in Nigeria, both military and civilian rulers with various techniques and

measures. What is irritating is the reality that most of the leaders in Nigeria governance

came as saviours to the crises of corruption, but at the latter, they also aided it).

Irrespective of these techniques to curb corruption, Nigeria is rated as one of the most

corrupt countries in the world. Brinkerhoff as quoted, his of the opinion that successful

anti-corruption crusade depend on political will of all citizens and majorly the

government. According to him, it includes both the political will to initiate fight against

corruption in the first place and the will to keep the battle going over time, until positivity

is achieved as result. However, a number of factors are responsible for poor political will

in Nigeria, as corruption is used to acquire political position and sustain it; many corrupt

issues have been closed for years in the courts because of the ineffective pace of the court

system. Many rules of evidence and process have for the most part been left practically

unchanged since the administration of the colonials, with ridiculous results. In the same

manner, most courts lack the good mechanism to admit electronic document into

evidence (Human Rights Watch, 2011). Indecency has been noticeable in the judicial

system of the country, particularly in cases involving high-profile figures.

42
 The most amazed facet was the U.S. diplomatic cables, revelation that Dimeji

Bankole, the former Speaker of Nigeria’s House of Representative, claimed to U.S.

diplomats that he had proof supreme court justices took bribes to authenticate Umaru

Yar’ Adua’s election as president in November 2008 and as well this same issues has

been happening in Nigeria even in the administration of Mr. Goodluck Jonathan.

Obasanjo, as quoted in Punch newspaper, (May, 2012) opines that the Nigerian legal and

Judiciary is corrupt. He said, “If the judiciary becomes corrupt, where is the hope for the

Nation? Justice will go to the highest bidder with no doubt.”

It is the role of the legislative arm of government to act as a regulator over the

executive arm in the management of government and public finance to ensure good

governance and accountability. Unfortunately, the legislature both at the state and federal

levels in Nigeria has been soaked in corruption in the course of performing its duty.

Obasanjo questioned the honesty of Nigeria lawmakers when he accused them of being

rogues and armed robbers. According to Obasanjo as quoted in Punch (20120,“integrity

is necessary for any management of government systems and institutions to be strong.”

He said, “Today, rogues, armed robbers are in the state Houses of Assembly and the

National Assembly, what sort of laws will they make for the citizens (other people under

the law)?”

Ezugwu, one of the prominent chieftain of the All Progressive People Party

(APGA), was cited in the National Mirror Newspaper (2012) as saying that “the

Economic and Financial Crimes Commission (EFCC) which should be fighting

corruption was mentioned as beneficiary of the fraud in the pension scam, so where will

the transparency come from when the anti-corruption agency is itself are corrupted.” In

43
the same cases, Nasir, the former head of the House of Representative committee that

supervises and monitor the EFCC crusade, alleged that there was “persistent corruption”

in Waziri-led EFCC. He told Human Rights Watch (2011) that he had received lots of

petitions from fraud victims who explained how they had approached the EFCC for help

only to have its operatives demand a large cut of any assets ultimately recovered.

3.2 CAUSES OF CORRUPTION IN NIGERIA

Corruption in general, is often seen as a social, economic and political destructive

force that has gone deep into the Nigerian society. Yet, various efforts to fight and stop

its spread remain largely ineffective. Economic condition of any society induces

corruption. In countries where there is democratic share of wealth in an equal pace,

corruption is reduced to the minimum level. So central is the issue of democratic

distribution of resources that Laski argued that: A State divided into a small number of

rich and a larger number of poor will always develop a government manipulated by the

rich to protect the amenities represented by their property (Isumonah, 1994). In the same

vein, those who eventually get the chance of holding any official positions would want to

remain there because to return as someone who will be ruled over is to suffer social

degradation.

According to ACBF (2007), corruption in government and the public sector is

aggravated by the worthless wages bestowed to its workers. Secondly, there is very short

chance of engaging in lawful economic activities outside the public sector, which

controls the Nigerian economy. Third, some studies (Apampa, 2003) have shown that

44
lack of access to markets and lack of funding supports to engage in self-employment

activities gives many the chances to take up appointments in the public sector. They

believe it provides the greatest opportunity for acquiring wealth, which can then be used

to establish a business or acquire income-earning assets. The Nigerian government

realizes up to 85% of its income and 92 percent of its foreign exchange proceeds from

petroleum. Hence the citizenry is weighed down from holding the government

accountable, because they see revenue as government money rather than as belonging to

the nation and themselves. This was not the case when government formerly derived its

revenue from farmers before the advent of oil.

An investigation into public sector operations in Nigeria reveals a skullduggery,

cronyism, political corruption, economic vice, “kleptocracy” and compromise of quality

as demonstrated in the crashes involving Dana airline in 2012, with heavy loss of lives

and property of citizens before government set up panels to review the aviation industry.

Nigeria also boasts of an abundant corps of leaders who pretend to work against

corruption but use their positions to get soaked in corrupt practices. Onifade & Imhonopi

(2012) argued that it is high time the country began to take better steps towards the public

sector to tame the swollen giant of corruption so that corrupt officials of the common

patrimony can be forced to face the full wrath of the law.

It is possible for public officers to take advantages of their political positions

without existing rules and regulations being invoked by relevant governmental bodies, to

punish such violators of the law. While rules, values and norms that regulate Western

political institutions could be found in the statute books guiding political institutions in

Nigeria, they are not applied to mediate the actions of governmental offices. Stealing of

45
public funds has also been rationalized by some scholars on the grounds that it is a form

of protest against a state that lacks legitimacy. One of the ways to deal with such state it

is argued is to pinch government reserves. A state that is not only imposed but has

become an alien force that abuses its people rather than cater for them to make their life

meaningful, is certainly full of corrupt practices. Bureaucratic corruption from the

perspectives of the school of thought is a means of punishing the "rogue" and pristine

State whose resources are assumed to be inexhaustible (Ekeh, 1975; Ake, 1993).

Evidently, the country's political and social system is highly monetized. Politics in

Nigeria is a game of only the rich has the chance to win elective post in most cases

because it involves money. The foregoing arguments plunge into the disputation that

corruption thrives because society endures it. Social demands and expectations are so

high on government and public office holders that a high ranking officials once lamented

that "those who refuse to be corrupted and are poor are called failures... so what, use is it

to be virtuous" (Diamond, 1991).

In society such as Nigeria where there is severe material shortage, the quest for

and use of public office is motivated by the desire for material gain. This has been well

argued as Osaghae (1994) quoting Bandfield observes that in a moral society, no one will

further the interest of group or community except as it is to his private advantage to do

so. In other words, the hope of substance gain in the short run will be the only motive for

concern with public affairs. Thus, in societies where such mind-set dominates the instinct

of the people, corruption is the unavoidable consequence.

46
 This opinion is similar to what Kanu and Osunbajo (1999) shared, quoting

Lacassage who claims that environmental factors as some of the reasons of corruption in

public life. For them, societies have criminals they earn and the social environment

becomes the incubator that raises the "criminal" or " corrupter" and provides a abundant

ground for them to blossom. Yet, in the competition for public offices, everything is done

to win because to win means having access to public funds. However, not everyone in

society benefits from such act but individuals, group of friends and relatives. In the

absence of democratic political culture and adaptation of customary norms against

corruption, it has assumed frightening measurement in the present-day Nigeria.

3.3 CORRUPTION DURING GOODLUCK JONATHAN ADMINISTRATION

In 2014, Nigeria's rank improved from 143rd to the 136th position

on Transparency International's Corruption Perceptions Index (Chinma, 2014). In late

2013, Nigeria's then central bank governor informed President Goodluck Jonathan that

the state oil company, NNPC, had failed to remit US$20 billion in oil revenues owed to

the state. Jonathan however dismissed the claim and replaced Sanusi for his

mismanagement of the central bank's budget. According to Tim and Joe (2015), in their

report asserts that senate committee also found Sanusi’s account to be lacking in

substance. After the conclusion of the NNPC's account audit, it was announced in

January 2015 that NNPC's non-remitted revenue is actually US$1.48 billion, which it

needs to refund to the government. 

47
 Nigeria since independence has experienced varying degrees of corruption to the

extent that it has been one of the frequent reasons for transform of national leadership. In

spite of strong public disapproval of corruption, the growth of corruption has continued to

spread. In the last few years’ corruption has grown widely to the point that Nigeria has

been stigmatized by the world and Nigerians as identical with corruption. Our national

economic, social and political institutions have been compromised and the continued

survival of Nigeria is threatened.

According to John (2014) as cited in Vanguard News (Dec, 2014) reported that

the operation of the national budget and the maintenance of the military forces have been

so severely compromised by corruption that national development and security have been

massively undermined under the Jonathan administration of the last six years. Using the

corruption perception index {CPI} of Transparency international, Nigeria has maintained

a score in the range of 25 percent and ranked amongst the bottom level of corrupt

countries deteriorating from a bad score of 27 percent in 2011 to 25percent in 2013.

Nigeria Corruption Rank  1996-2017 |Data| Chart Calendar Forecast.

The Corruption Perceptions Index ranks countries and territories based on how corrupt

their public sector is perceived to be. A country or territory's rank indicates its position relative to

the other countries and territories in the index. This page provides the latest reported value for -

Nigeria Corruption Rank - plus previous releases, historical high and low, short-term forecast and

long-term prediction, economic calendar, survey consensus and news. Nigeria Corruption Rank -

actual data, historical chart and calendar of releases - was last updated on May of 2017.

Confirmation of far reaching and widespread corruption possess large amounts of our

regular day to day existence. Taking after the last open exhibit against the expansion in

48
fuel costs in 2012, a test into the operations of the fuel sponsorship program of the

Jonathan organization uncovered enormous extortion and corruption yet no conviction

has been secured by this legislature.

The different reports of examination of corrupt practices in the national annuity plot, the

power segment, the NNPC, the National Bank, government services and divisions

proliferate and nothing has been done about them (John, 2014 referred to in Vanguard

News). As indicated by him, the organization of Mr. Goodluck Jonathan as the leader of

Nigeria has illustrated, both in its non-verbal communication and unambiguous measures,

a sickening absence of will and fitness to capture and invert the overwhelming grasp of

corruption on our national life. Authorities in legislature of Nigeria have created and

managed cozy associations with society figures being examined for corruption and

previous open authorities, established blameworthy for corruption, have been specifically

exonerated by the administration. Some of these people, taking after their acquit, have

been named to high positions of impact by the PDP organization and offered their

proposition to challenge for high open office (John, 2014).

Notwithstanding these, the organization of Goodluck Jonathan had a few running

embarrassments which incorporates the BMW auto that is been buy by his Aeronautics

Serve, more than Two Hundred and Fifty US Dollars ($250) million security contracts to

activists in the Niger Delta, massive corruption and rewards in the Service of Oil, the

Malibu Oil Global shock, and a few outrages including the Oil Service including

allegations of sweetheart deals with select fronts and agents to redirect the country assets.

49
At the nearby end of Goodluck Jonathan's administration, the National Bank mystery

outrage of money stumbling of damaged notes was additionally uncovered, where it was

uncovered that in a four-day time span, 8 billion naira was missing and was

straightforwardly by low-level laborers in the CBN. This disclosure barred a wrongdoing

that is suspected to have continued for quite a long time and went imperceptible until

uncovered by shriek blower. The National Bank assert the heist undermined its money

related policy. In 2014, UNODC began a plan to help battle corruption in Nigeria

(Valerie, 2016).

New contentions of corruption have begun to appear since the departure of

President Jonathan on May 29, 2015, including:

 $2.2 billion illegally withdrawn from Excess Crude Oil Accounts as Adams

Oshiomole accuses Okonjo-Iweala of spending too much on Jonathan's Election

Campaign without approvals and that, of which $1 billion supposedly approved by

President Jonathan to fund his re-election campaign without the knowledge of the

National Economic Council made up of state governors and the president and vice

president. (Retrieved from Punch Newspaper, 2016).

 Close to 60 million barrels of oil valued at $13.7 billion was stolen under the watch of

the national oil company, Nigerian National Petroleum Corporation, from 2009 to

2012 (Punch Newspaper, 2015).

 Diversion of 60% of $1 billion foreign loans acquired from the Chinese by the

Ministry of Finance (Punch Newspaper, 2015).

50
 Massive cheat in weapons and defense procurements, and misuse of 3 trillion naira

defense budget since 2011 under the guise of combating the insurgence of Boko

Haram (Punch Newspaper, 2015).

 Diversion of $2.2 million vaccination medicine fund, by Ministry of Health.

 Diversion of Ebola fight fund up to 1.9bn naira (Abiodun, 2015 cited in Punch

Newspaper, 2015).

 Ministry of Finance led by Okonjo Iweala hurried payment of $2.2 million to health

ministry contractor in disputed invoices (Premium Times, 2016).

 Police Service Commission swindle investigated by ICPC that revealed

embezzlement of over 150 million naira related to election related trainings. ICPC

made refund recommendations, but many analyst indicated prosecution was more

appropriate (ICPC, cited in Premium Times 2016).

 3.4 To what extent has corruption affected Nigeria’s national

development?

Aiyede (2006) asserts that “corruption creates a serious development challenge

most especially, the economic, political and social sector. In the political sector, it

weakens democracy and governance by threatening formal process. Thus, corruption

destabilizes the legitimacy of government and autonomous values of trust and tolerance.”

Omar et al (2001) assert that evidences abound to suggest that corruption creates

rooms for major impediments to investments in countries where it is ubiquitous. The

51
worst effects of corruption on national development can be colossal, and in any corrupt

regime, a nation could lose billions of dollars into the pockets of the nation’s government.

“Corruption aggravates poverty and it affects those of lower income because it pulls

resources from the national treasuries, placing the money into the bank accounts of a few

individuals who are politically influential. This type of corruption exerts overwhelming

effects on developing economies of nations that desperately need developments.”

Corruption averts efficiency in the development of a nation as time and money are

exhausted through corrupt actions at the expense of productive process and which

altogether dejects prospective investors. This weighs on both the public administration

and private enterprises in the country. Public sector efficiency becomes compromised

because corruption superimposes familiar practices over the proper rules and procedures

of government adding direct and indirect costs to the execution of programs. Corruption

weakens human and capital development in any society or nation. Corruption slows

down the rapidity of economic development through mismanagement of funds for

projects; it destroys or weakens efficiency and effectiveness of public service; it detracts

government from giving priority to the areas of income and social inequality, poverty,

malnutrition and other areas of need.

Tanzi (1998), in his studies give a useful summary of the adverse effects of

corruption. These effects are listed below and they include:

 Reducing the empowerment for the health and education sectors of the country,

because these expenditures do not lend themselves easily to corrupt practices on the

part of those who control the budget strings.

52
 Reducing investment and hence growth, by increasing costs and uncertainty.

 Reducing spending on operations and maintenance of the nation for reasons similar to

the point above.

 Increasing public investment because governmental projects are easier to influence by

the involved officials and bidders and as well reduce the productivity of public

investment and infrastructure.

 Reducing tax revenues due to corrupt tax officials and customs administration; and

 Reducing Direct Foreign Investment (DFI) of a nation because corruption acts as a

tax, the less predictable the height of corruption, the greater its impact on foreign

investment.

Indeed, the advanced democracies at different points in their evolution had

corruption as part of their social, political and economic process. Scholars have argued

that corruption is a social fabricator since it is a factor that helps to fast-track work. Yet,

corruption is an evil wind that blows no one good. Its effect has been enormous on

national life. Its cost has weakened the development at all levels of government and

debilitating on the general populace. Corruption has resulted in financial loss in

government, some of the country's vast revenue earnings, since independence put

conservatively at over 400 billion dollars have been squandered by government officers

mostly on conspicuous consumption living large. These are monies that could have been

used to provide the masses with the basic needs of life but are diverted into private

treasuries

53
 More than seventy (70) per cent of Nigerians live on less than one dollar per day

and about the same percentage live below the poverty range. In spite of the fact that

Nigeria is filled with different mineral resources and the largest producer of oil in Africa

and the 10th among world oil rich nations, it is one of the twenty-fifth poorest countries

in the World. Many Nigerians die of unnecessary diseases because of the lack of proper

and needed drugs in hospitals that have turned to mere consulting clinics. Basic facilities

such as roads and electricity are at various stages of disrepair thereby increasing the stress

placed on the ordinary citizenry.

Babawale (1996) give a detail assertion about Nigerians thus: A sharp decline in

the living standard of the majority of the people, deterioration problems of urban housing

and transportation, increasing incident of hunger and starvation, decline in public health

services standard, with most hospitals, including specialist ones, deficiencies of the most

elementary drugs and equipment’s and educational sector steeped in deep crisis,

collapsing standards, and extremely low self-esteem among lecturers and students are

some of the macro- social hallmarks of the adjustment programs. These macro-social

problems have gone hand in hand with continuing and in some cases worsening problems

in the economy. Many policy specialist and scholars regard corruption as one of the

reasons why the economy has failed to respond positively to the SAP therapies.

Corruption will hinder the achievement of Millennium Development Goals (Obayuwana,

2013). In recognition of the harm corruption has been doing to the nation, several policies

and institutions have been established to fight the scourge.

The impacts of corruption in Nigeria are despicable. The effects range from under

development, absence of basic infrastructure such as potable water, good road networks,

54
misappropriation of national resources leading to massive poverty, mediocrity in

leadership and cluelessness in professionalism, deficient leadership outputs, high

unemployment and youth hopelessness, continuous widening gap between the rich and

poor, and falling standard of education leading to production of low-quality graduates .

Corruption has made students and products of the tertiary institutions suffer from loss of

self-confidence, hopelessness, and loss of confidence in handwork and societal value. It

has lowered the image of academic and non-academic members, as well as governing

councils of most public tertiary institutions in Nigeria.

Corruption denies access to basic services in terms of education and health,

increases political and social violence, and exacerbates violent conflict. It deforms public

spending, increases cost of running businesses as well as cost of governance, and diverts

resources from poor to rich nations. It has frustrates research efforts, disrupt

administrative objectives, and it has also drastically reduced the reflection of Nigeria in

the international community’s to mention just a few.

Corruption has adversely affected Nigeria’s economy. Financial resources which

would have been used to facilitate the country’s economic development have been

diverted into private bank accounts abroad. More irritating is the fact that these stolen

funds meant for economic development are not invested in the country to create

employment for the unemployed citizens of the country and to deal with the necessary

sectors that needed funding. This is indeed the reason for high level of poverty, insecurity

and widespread diseases. In spite of its exceptional profits earn from the exploration and

exportation of crude oil, its great human resources and other extensive benefits, Nigeria is

still predominantly poor as a result of corruption.

55
 The poverty level in Nigeria is worsening as unemployment is increasing daily.

The quality of education, health and other social services is diminishing all over the

country. The agricultural, general merchandising and other social services which,

hitherto, provided employment for the ordinary citizens have become very unpleasant.

Corruption weakens Nigeria’s economic development by creating a considerable

distortions and disorganization. The Human Right Watch (2007) comments that, “despite

record-setting government revenues in recent years, corruption and mismanagement

remain a major cause of Nigeria’s failure to make meaningful progress in improving the

lot of ordinary Nigerians.” It has been argued by observers of the Nigerian political

process in recent times that in the face of hardship, believed to have been boosted by high

level of corruption, it will be a hard task to convince an average Nigerian to continue to

make unending sacrifices and swallow without a limit the bitter economic pills which is

not a natural outcome but an inevitably effect of a corrupt system of government.

Official corruption in Nigeria drains off money intended for the development of

the country. Apart from making profit on investments from Nigeria’s stolen billions of

dollars, European countries and banks turn around and loan such money to Nigeria and

other African countries at exorbitant rates. Much money is spent in the payment of

interest on such loans than is spent on health and education combined. The critical issue

in economic development is not whether corruption happens, but whether the stolen

money is invested in the country. Enormous corruption (as it relates to stealing of public

funds) and economic development can co-exist, if the stolen money is invested in the

development of the country’s productive sector. This reminds one of Igwe’s observations,

that “In Nigeria, the post-independence elite initially invested their new-found wealth

56
locally only to see those assets appropriated by incoming administrations. The thinking is

always: I am certain to be probed once I leave power, so I had better put everything

abroad.” (Igwe, 2010).

57
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officials". Retrieved 2 July 2016.

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reduction in Africa. Paper Presented at the UNU-WIDER Jubilee Conference:

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Prevention of Corruption. Singapore. Hoong Fatt Press.

Apter, A., 2005. The Pan-African nation: Oil and the spectacle of culture in Nigeria.

Chicago: University of Chicago Press.

Chabal, I. and C. Daloz, 1999. Disorder as political instrument. Indianapolis: Indiana

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Diamond, L., 1991. Political corruption: Nigeria's perennial struggle. Journal of

Democracy, 6(2): 21-36.

Ezugwu W. (2012, May 16). People Democratic Party responsible for Nigeria's System

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Fjeldstad, O. and Isakson, J. (2008) Anti-Corruption Reforms: Challenges, Effects and

Limits of World Bank Support. Background Paper to Public Sector Reforms:

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62
63
 CHAPTER 4

4.0 SUMMARY:

Jonathan's administration has generally been portrayed as degenerate. As indicated by

The Financial analyst, corruption thrived under the Jonathan administration, "who let

legislators and their cohorts fill their pockets with impunity."Extensive aggregates of

cash have been utilized dishonorably various circumstances, with ₦ 3.98 trillion Naira

($20 billion USD) supposedly going missing and ₦ 398 billion Naira ($2 billion USD) of

military subsidizes professedly scattered among high-positioning officials. Moreover,

Jonathan was charged to have by and by requested over ₦ 3 trillion Naira ($15 billion

USD) from the National Bank of Nigeria to bolster his decision and other selfish ventures

under the appearance of a mediation finance for national strength. Charles Soludo, a

teacher of financial aspects and previous legislative head of the National Bank of Nigeria,

likened Jonathan's money related neglectfulness to that of previous Ugandan president Idi

Amin .Ngozi Okonjo-Iweala, a business analyst and previous Fund Pastor of Nigeria,

pegged Jonathan's administration as the primary driver of Nigeria's monetary hardships in

an address at George Washington University, despite the fact that she later denied it.

Since May 2015, the Muhammad Buhari administration supposedly has been battling

corruption that emerged under Jonathan. Numerous previous political office holders and

nominees that served under Jonathan, and gathering individuals, have been captured on

different corruption charges. It is claimed that a few, including previous Fund Serve

64
Nenadi Usman, have returned some portion of the cash they stole. A hefty portion of the

degenerate authorities that have been captured have expressed that they acted under

Jonathan's instructions It stays vague regardless of whether Jonathan, who is accepted to

have either engineered or excused the corruption, will be arrested.

65
4.2 RECOMMENDATION:

1. Paying government employees well whether government workers are fittingly repaid

or terribly come up short on will unmistakably influence inspiration and motivating

forces. In the event that open division wages are too low, workers may end up

underweight to supplement their earnings in "informal" ways. Van Rijckeghem and

Weder (2001) did some exact work demonstrating that in a specimen of less created

nations, there is a reverse connection between the level of open part compensation and

the frequency of corruption.

2. Making straightforwardness and openness in government spending Endowments,

charge exclusions, open acquirement of merchandise and ventures, delicate credits,

additional budgetary supports under the control of lawmakers—all are components of the

different routes in which governments oversee open assets. Governments gather charges,

tap the capital markets to raise cash, get outside guide and create components to assign

these assets to fulfill an assortment of necessities. A few nations do this in ways that are

generally straightforward and attempt endeavors to guarantee that assets will be utilized

as a part of people in general intrigue. The more open and straightforward the procedure,

the less open door it will accommodate impropriety and manhandle.

3. Cutting formality the high connection between's the occurrence of corruption and the

degree of bureaucratic formality as caught, for example, by the Working together markers

proposes the attractive quality of dispensing with the same number of unnecessary

controls while protecting the basic administrative Elements of the state.

66
4. Supplanting backward and misshaping endowments with focused money exchanges

Appropriations are another case of how government strategy can bend motivating forces

and make open doors for corruption. As indicated by an IMF consider (2013), purchaser

endowments for vitality items add up to some $1.9 trillion every year, identical to around

2.5 percent of worldwide Gross domestic product or 8 percent of government incomes.

These appropriations are backward dispersed, with more than 60 percent of aggregate

advantages accumulating to the wealthiest 20 percent of family units, on account of fuel.

Expelling them could bring about a critical decrease in CO2 outflows and create other

positive overflow impacts. Sponsorships regularly prompt sneaking, to deficiencies, and

to the rise of illegal businesses. Setting aside the issue of the open door costs (what

number of schools could be worked with the cost of one year's vitality sponsorship?), and

the ecological ramifications related with misleadingly low costs, endowments can

regularly put the legislature at the focal point of corruption-producing plans. Much better

to supplant costly, backward sponsorships with focused money exchanges.

6. Conveying keen innovation:

Similarly as government-incited bends give numerous chances to corruption, it is

likewise the Case that regular, coordinate contact between government authorities and

subjects can open the path for unlawful exchanges. One approach to deliver this issue is

to utilize promptly accessible advances to support a greater amount of an a safe distance

connection amongst authorities and common society; in this regard The Web has been

ended up being a powerful apparatus to decrease corruption (Andersen et al., 2011).

67
In some countries the use of online platforms to facilitate the government’s interactions

with civil Society and the business community has been particularly successful in the

areas of tax collection, Public procurement, and red tape.

4.3 CONCLUSION:

In many of the measures discussed above aimed at combating corruption, the underlying

Philosophy is one of eliminating the opportunity for corruption by changing incentives,

by closing

off loopholes and eliminating misconceived rules that encourage corrupt behavior. But an

Approach that focuses solely on changing the rules and the incentives, accompanied by

Appropriately harsh punishment for violation of the rules, is likely to be far more

effective if it is

Also supported by efforts to buttress the moral and ethical foundation of human behavior.

E. O. (2007). The effect of corruption and economic reforms on economic growth and

development in Nigeria. Journal of Social Sciences and Finance.

68
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