Public debates recently in
Nigeria have centred on the increasing rate of corruption resulting from
inappropriate public finance planning and implementation mostly in some
of the developing countries, Nigeria inclusive which in turn reduce the
level of economic growth in the country. Corruption made itself visible
when the institution of the government was founded due the behaviour of
people appoint or elect to manage the government institutions (Anyanwu,
2002; Idomeh, 2006). Corruption has recently become a major issue in
foreign aid and Nigeria nation as a whole. Corruption is an ancient
practice that has been traced back to pre-biblical time and made itself
known in the ancient civilizations of developed and developing
countries. Political and social corruption is not a recent phenomenon
that pervades the Nigerian state. Corruption is a social problem that
has interested many scholars. Ruzindana (1999) sees corruption in Africa
as a problem of routine deviation from affordable standards and norms
by public officials and parties with whom they interact. The major
concern for inter-nation aid policy during the last five decades has
been to improve the living condition for the poor in the poorest
countries of the world. But governments in poor countries are also the
most corrupt country due to high level of poverty. Treisman (2000) and
Paldam (1999) cited in Jens and Odd-Helge (2001) states that the level
of GDP per capital holds most of the explanatory power of the various
Corruption is a disease, which
eats into the cultural, political and economic growth of any country and
as well destroys the functioning of various organs of the government.
Transparently international (2005) opine that “corruption is one of the
greatest challenges of the contemporary world which undermines good
government, fundamentally distorts public policy, leads to the
misallocation of resources harms the private sector development and as
well hurts the poor”.
The need to study corruption and
economic growth in Nigeria has continued to generate passionate
commentaries and academic interest due to the level of corruption in the
country and its effect on economic growth. In Nigeria corruption is one
of the reasons for many unresolved problems that have critically
hobbled and reduce development (Ayobolu, 2006). It also remains a
long-term major political and economic growth challenge for Nigeria
(Sachs, 2007). International centre for economic growth (1999) states
that corruption is a canker worm that has eaten deep in the fabric of
the nation which ranges from petty corruption to political or systematic
corruption. Abiodem (2007) in World Bank studies put corruption at over
$1 trillion per year accounting for up to 15% of the Gross Domestic
Product of nation like Nigeria. Corruption is a canker worm that has
reduced development in all sectors of the economy (EFCC, 2005).
Corruption has been the primary reason behind the country difficulties
in developing fast (ICPC, 2006). Ribadu, (2003) states that this is the
reason why transparency international has consisted rating of Nigeria as
one of the top three most corrupt countries in the world.
In Nigeria, the level of
corruption, poor state of our electricity, transport sector, health
sector, education sector and communications is the major problem of
economic growth and it is a major handicap for doing business in the
country. As part of fighting corruption and strengthening the economy,
Nigeria government has over the years embark on series of economic
growth reform through privatization, banking sector reform,
anti-corruption campaigns and establishment of transparent fiscal
standards such as ICPC, EFCC etc. The major aim of economic reform in
Nigeria is to provide a conducive environment for private investors and
FDI to flow (African economic outlook 2011).
1.1 Background to the Study
Contrary to the prevailing
practice among most social scientists and other students of society
(like lawyers, historians and philosophers) who claim or make a pretense
at objective, values-free analysis and explanation of any social
phenomenon. I openly acknowledge that all attempts to explain social
reality, or any aspect of it are necessarily informed by philosophical
and moral presuppositions, explicitly or implicitly made by scholars
Consequently, a historical perspective
of corruption in Nigeria begins with seeing corruption as a form of
anti-social behavior by an individual or social group which confers
unjust or fraudulent benefits in its perpetrators, is inconsistent with
the established legal norms and prevailing moral ethos of the land and
is likely to subvert or diminish the capacity of the legitimate
authorities to provide fully for the material and spiritual wellbeing of
all members of society in a just and equitable manner. It is important
to note the following;
A. Corruption was not invented by, nor
is it peculiar to Nigerians. On the contrary, it is a global phenomenon
with deep historical roots, although it manifests itself with
significant similarities and differences in different societies,
depending on the particular system of power c distribution and the legal
and moral norms operating therein.
B. Corruption, like all social
phenomenon, is intelligible only in its total social context: its
peculiar form, dynamics and degree of social and cultural acceptability
or tolerance being critically related to the dominant mode of poverty
distribution power configuration; and the underpinning moral and ethical
values of operation in a given society.
C. Corruption in Nigeria is a kind of
social virus which is a hybrid of traits and those derived from and
nurtured in the indigenous Nigerian context.
1.2 Statement of Problem
The causes of corruption are
myriad; and they have political and cultural variables. According to
Lipset and Lenz, there is a strong evidence points to a link between
corruption and social diversity, ethno-linguistic fractionalization, and
the proportions of country’s population adhering to different religious
traditions. And studies note also that corruption is widespread in most
non-democratic countries, and particularly, in countries that have been
branded neo-patrimonial, kleptocratic and prebendal (NORAD 2000). Thus,
the political system and the culture of a society could make the
citizens more prone to corrupt activities. However, the statement of
this research problem is focus on the fact that corruption has degraded
our nation and yet its not adequately considered or looked into as a
serious fact to poor economic growth of the nation Nigeria, therefore
the researcher seeks to address this issue and highlight the effects of
corruption in Nigeria and call for adequate attention to its clarion
1.3 Objectives of Study
This research work will evaluate
corruption, its conceptual effects to the economic growth of Nigeria.
Other forms of objectives are.
- To review Nigerian corruption and its effect to the economy.
- To alternate an option to how corruption can be adequately tackle and handle in our country Nigeria.
- To call Nigerians to stand out, and shown corruption.
1.4 Research Hypothesis
For the purpose of this research work, two relevant research hypothesis will be stated and tested for the cause of this study.
- Hnull There is no significance relationship between corruptions to economic growth of Nigeria.
Halt There is a significance relationship between corruptions to economic growth of Nigeria.
- Hnull Corruption cannot be resolved in Nigeria as a result of the level attain to.
Halt Corruption can be resolved in Nigeria even though the level it has attain to
1.6 Significance of the Study
The significance of this work
lies on the fact that with less corruption, the Nigerian economic growth
stands to gain in its efforts towards development. This study attempts
to answer the question; what is the correlation between corruption and
economic growth, the cause of corruption and how the present state of
corruption will be lessen.
This will form the basis upon which suggestions will be made as to how corruption can be eradicated.
This work stands to benefit:
- Nigeria as a whole. The research
intends to bring forth ways to lessen corruption for the purposes of
increasing economic growth.
- The research will be beneficial to
schools (teachers and students) and will help them understand the
consequence of corruption to our nation.
1.7 Scope and Limitations of the Study
This study focuses on Nigeria and on the impact of agricultural development on the economic growth of Nigeria.
The originality and reliability of any
study or research work is based on the quantity and quality of available
data. Though it is the duty and intention of any researcher to bring
out and show everything the study is to have, but there are constraints
which include, time, finance, difficulty in getting data, etc.
1.8 Research Methodology
This research work will employs simple
econometric models like Augmented Dicker-Fuller test, granger casualty
test and co-integration test to investigate the impact of corruption on
economic growth in Nigeria. Therefore, secondary method of data
collection is used.
1.9 Definition of Key Terms
Corruption may be
conceptualized as the perversion or change from good to bad, right or
wrong. It may be defined generally as the misuse or abuse of position,
power or procedures for personal or group interest, need and wants. "It
involves the violation or established rules, practices and procedures"
personal and/or group interests.
The word "corruption" has varied
meanings depending on the political culture and civilization of the
people. It is effort to secure wealth and power through illegal means
for private gain at public expense. Corruption has coexisted with human
society for a long time and remains one of the problems in many or the
'worlds developing economics with devastating consequences. It involves
the violation or established rules for personal gains and profits. It
includes such behavior as bribery, nepotism and misappropriation of
funds (sce Sen 1999, Nyc 1967, lipset and Lenz 2000).
Granger causality test
is a statistical hypothesis test for determining whether one time series
is useful in forecasting another, first proposed in 1969.
Ordinarily, regressions reflect "mere" correlations, but Clive Granger
argued that causality in economics could be tested for by measuring the
ability to predict the future values of a time series using prior values
of another time series.