The Implication of Corruption on Economic Progress of Nigeria

Abstract

The issue of corruption is a universal challenge and has denied many emerging economies good business opportunities. This study makes use of the position of Nigeria in the country corruption ranking captured by Transparency International and the rate of corruption prevailing in the country to assess the degree of influence corruption has on economic growth of the country. The study employs secondary form of data obtained from World Bank Development Indicators and Transparency International which cover a period from 2008 to 2018. The regression result indicates that the country corruption ranking has a significant negative influence on economic growth in Nigeria while the rate of corruption prevailing in the country has a significant positive impact on economic growth in the country. The two results are significant and so the study concludes that the image of the country has been tarnished globally due to the high level of corruption in Nigeria and as internationally perceived. As a result, important investment opportunities elude the country even though the economy is growing with the high rate of corruption prevailing in the country. The study thus, recommends among others that the religious leaders and non-governmental organizations should assist in curbing the menace of corruption by inculcating moral values in the young generation who should grow up to say no to corruption and its attractions. This will go a long way to salvage the future of this great nation.

Does Corruption and Institutional Quality Impede Economic Performance in Nigeria?

“…Corruption, Institutional Quality and Economic Performance Nexus: There is a conflicting report on the nexus between corruption, institutional quality and economic performance in the developed countries and developing economies to which Nigeria belongs. Some of the empirical studies show that corruption and institutional quality have a negative effect on economic performance [18][19][20][21][22][23] as asserted by Rock and Anoruo [24,25]. Nevertheless, there have been reports of the positive effect of corruption and institutions on economic performance in some other studies [26][27][28][29][30].…”

“…One of the schools of thought embraces the fact that corruption leads to public sector efficiency and has a positive influence on economic performance because approval of projects are speedily given when bribes are paid to bureaucrats [26][27][28][29][30]. The second school of thought holds that corruption impede economic performance, increases transaction costs and reduces profits in business [18][19][20][21][22][23].…”

When Media Campaigns Fail: Explaining the Factors of Civil Disobedience to COVID-19 Protocols in Nigeria

“…Furthermore, Nigeria has been intermittently entering and exiting economic recession with high inflation and dependence on the volatility in the global oil market. Also, apart from corrupt political enrichment and public suspicion against activities of the political class (Omodero, 2019), there are occasional intra- and inter-ethnic and religious conflicts raising disaffection in a multi-ethnic and highly diversified country because of fear of political and religious domination between and among groups (Igiebor, 2019).…”