Corruption in Nigeria Economy System | PDF | Political Corruption | Corruption

Corruption in Nigeria Economy System | PDF | Political Corruption | Corruption

Corruption in Nigeria Economy System

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Corruption in Nigeria: Review, Causes, Effects and Solutions January 6, 2016

Introduction

Corruption is Nigeria's biggest challenge. It is clear to every citizen that the level of corruption in the country is high. It's found in every sector of society. Be it a small or big sector, there is every possibility of observing corrupt practices when critically examined.

What is corruption? It's the dishonest or fraudulent conduct by those in power, typically involving bribery. It is the illegitimate use of power to benefit a private interest (Morris 1991). Corruption is the giving of a bribe to an official so that the truth will not be told. It involves the embezzlement of public fund for personal use and any act which is considered to be criminal act according to the law of a particular society.

Review on the Corrupt State

Nigeria, which the most populated country in Africa, has been ranked high in corruption by Transparency International and other notable organizations that monitor corrupt practices around the world. They do not have anything good to say about Nigeria at all. High corruption rankings affect almost all Nigerians who migrate to foreign countries, as foreigners have the perception that since Nigeria is corrupt, so are all Nigerians.

In the year 2000, Transparency International carried out a survey on the corruption levels of 90 countries, including Kenya, Cameroon, Angola, Nigeria, Côte-d'Ivoire, Zimbabwe, Ethiopia, Ghana, Senegal, Zambia, India, Venezuela, Moldova, and others. At the end of the ranking, Nigeria was seen as the most corrupt in that ranking because the country occupied the 90th position in terms of transparency. Nigeria was the most corrupt country in the year 2000.

In 2001, Nigeria was ranked the second-most corrupt nation in the world out of 91 countries, falling only to Bangladesh. This shows that corruption in Nigeria improved by one step when compared with that of 2000.

Still from the same source, in the year 2002, Nigeria was again ranked the second-most corrupt country in the world, after the organization surveyed 102 countries. Nigeria was seen at the bottom, occupying the 101th position in terms of Confidence Interval (CI).

In 2003, Nigeria received the same ranking, making no improvements from 2003.

2004's ranking showed a little improvement when compared to the past four years. Nigeria was ranked the third most corrupt country in the world, performing better than Bangladesh and Haiti. That year, 145 nations were surveyed.

The record on the corruption in Nigeria really improved in 2005. The number of countries surveyed by the Transparency International was 158. Nigeria was ranked sixth most corrupt.

More countries were surveyed by Transparency International in 2006. 163 countries were surveyed that year. The results showed some improvement, and Nigeria was ranked the 18th most corrupt country in the world. Haiti was the world's most corrupt nation that year.

Among the 180 countries surveyed in 2007, Nigeria ranked 148. This result shows that Nigeria was 32nd most corrupt country in the world.

An analysis of the anti-graft/anti-corruption laws in Nigeria shows that corruption will continue in spite of the law, because the perpetrators do not fear any consequences (Oyinola 2011).

In 2012, Transparency International again deemed Nigeria one of the most corrupt nations in the world again (Uzochukwu 2013). In that year, the country ranked 139th out of the 176 surveyed countries, making Nigeria the 37th most corrupt nation.

In 2013, Nigeria ranked 144 out of 177 surveyed countries in terms of transparency. The score made Nigeria 33rd most corrupt country in the world that year. The result published by the organization also showed that Nigeria scored 25% out of 100 in terms of transparency.

In the 2014 ranking, Nigeria is ranked 136 out 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.

Nigeria failed when it came to transparency in the country. By contrast, in 2013, Denmark and New Zealand scored highest at 91% each, meaning the countries are clean and have higher Confidence Intervals than Nigeria. In the other words, Nigeria is highly corrupt.

Facets of Corruption

Corruption takes many forms and can be interpreted by many people in many ways. It is hard to enter any sector in Nigeria without observing one corrupt practice or the other. The areas where corruption is observed are not only in the public sector or in politics

Political Corruption

Books have been written, people have talked, and press companies have been writing on the high level of corruption in Nigeria politics, yet the political perpetrators pretend as if they are not the people being talked about. They feel they are above the law.

Corruption takes many shapes, starting with embezzlement, bribery, rituals, rigging in elections and so on. In fact, corruption is highest in the political system. In both the Senate and the House of Representatives, corruption is seen as normal. Where do we start among politicians? It is because of the “wicked level” of corruption that makes both the youths and the old struggle to find themselves in one political party or the other. They believe that once they occupy any position in politics, even the smallest, they will use corrupt tricks to fill their pockets with public funds.

Embezzlement of public funds is common. Many leaders have helped boost the economies of other nations by depositing embezzled money in foreign banks. Facts and figures have shown that on many occasions, the men who rule the country have embezzled funds into foreign banks.

Political corruption is persistent in the Nigerian state. Since the creation of modern public administration in the country, there have been cases of official misuse of resources for personal enrichment (Storey Report 2014). After the death of the former president, President Sani Abacha, an investigation was carried out to detect the amount of money he embezzled in gas plant construction in the country. The investigations led to the freezing of accounts containing about $100 million United States dollars (Hector 2004) that he stole. The Abacha administration in the 1990s notoriously looted upwards of $3 billion (Uzochukwu 2013).

As of a few years back, whenever it was time for election in Nigeria, small children in the country began to go missing. Child-missing during that period was rampant and parents were usually advised to guide and guard their children from ritualists. But why was it like that and what were the children used for? This is another face of corruption that breaks the hearts of mothers. The missing children were used by contesting politicians to perform ritual killings in order to get protections and other devilish powers that will enable them win elections. This is corruption and wickedness in the highest order because it involves the termination of human life. Those who take part in that practice have their children at home and went on capturing and killing the children of others. It is not as if this has stopped, but it has slowed down.

Election rigging is not an unheard-of phenomenon. During elections, the contestants hire thugs who go round the election polling stations to highjack the ballot boxes. When they steal these boxes, they then use their hands to vote for their candidate. In the recent times, the new tactics that the contestants have adopted is buying voter’s cards so that they can manipulate and use the cards for their own advantages.

On many occasions politicians have bribed some top officials to do wrong things to their favour. Some political leaders, including governors and presidents, have been sued by opponents, but the sued followed the back door, bribing barristers and judges. At the end of the judgement, the leader who bribed won in the case.

Corruption in Universities and Colleges

It is not new to any real Nigerian to hear that corruption parades itself in universities, polytechnics and colleges. There are certain things that lecturers do that deserve “hot punishment.” Most lecturers use the opportunity they have to take advantage of others. Harassment of women by lecturers and pressure to sleep with them is common. The most painful part of it is that some of them are married, yet they are not satisfied. After some of the female undergraduates submit to the lecturers request, they are rewarded with good grades.

Universities have been crying about the amount of funds allocated to them. A lecturer in a university located in Anambra State on the nature of the poor standard of the foundry in the department of Metallurgical and Materials Engineering has this to say: “What makes our foundry to be of low standard is...corruption. An organization gave the department some money that would have been more than enough to upgrade and standardize the foundry, but I do not know what the management of the department did with the money.” Corruption is one of the biggest challenges faced by the education system.

How do some students find their ways into the universities? Some are there not by merit, but through a kind of bribery called sorting. Some rich men in the country bribe vice-chancellors and heads of departments to secure admission for their children. When this kind of dirty practice is conducted, those who would have made it on merit are cheated, as no admission will be offered to them. Every university in Nigeria has a quota (maximum number of students) they can admit each year.

Corruption in the Police Force

Where do we start when it comes to the nature of corruption observed in the police? Do we start with the bribery, intimidation, sexual harassment of the young inmates in the prisons, or turning truths upside down? There is a saying that “police are your friends”; in Nigeria policemen are your enemies because they can deny the truth and collect bribes to do so. Because of the encounter many Nigerians have had with policemen, even the good ones among them are generalized as being bad. What a shame.

The police who work in some checkpoints on the expressways cannot do so without collecting of bribes from car owners and drivers. Their interest is to collect money from road users and not to secure the road. Bribes become compulsory even when your particulars are in order. Bus drivers must offer money before they continue with their transportation business, be it fifty naira (₦50 = $0.31) or twenty naira (₦20 = $0.12). The police are now turning to gods that receive money from the worshipper as offering.

Some women prison inmates went into prisons singled to come out doubled. What this implies is that the policemen use the opportunity they have to assault women who are imprisoned. The women may say no, but because the policemen have guns, the women could not do anything. They were impregnated before they were granted bail. What kind of prayer will erase this kind of abomination?

Corruption in Football

Corruption is like a curse laid upon us by an unknown person. Even in football has corruption. Players are not chosen by merit. It is all about who you know in top political offices or society.

In the Nigerian Football Federation (NFF), corruption is the reason why Mr. A is elected as the leader of the group today and tomorrow the election is nullified and Mr. B chosen. Everybody wants to be at the head so that he will fill his bag with the national cake. People do not fight to work because it is stressful, so whenever people fight for a particular position, there is every possibility that they are there to clean out the organization.

Reports and evidence have shown that there are corrupt practices in Nigerian football. A BBC news report said this: “A senior football official and a club administrator have been banned for 10 years following their involvement in corruption, the football authority has announced” (BBC Sport News 2013). Match-fixing and corruption is a problem in Nigerian football and has lead to sanctions against a number of clubs, referees and officials (Oluwashina 2013).

A referee (name withdrawn) who is currently a Catholic priest serving in a parish in Anambra, once gave his experience on the level of corruption in football. According to priest, he said that he narrowly escaped death when he officiated a match in the local league. He stated: “After the first half of the match, none of the two sides scored any goal. Before the beginning of the second half, some officials and young youths who were supporting the club at home side came and said to me: if you want to leave this pitch alive, make sure that you do anything possible to see that our club win this match.” The young referee was scared of the treat and finally the home side won the match with a lone goal. The inability of Super Eagles of Nigeria to qualify for 2015 Africa Cup of Nations (AFCON) can be attributed to corruption.

Corruption in Churches

When churches are corrupt, what hope do Nigerians have? The truth is that not all the churches in the country are corrupt. Corruption is witnessed mainly in the “mushroom churches.” Mushroom churches in this context are those churches which do not have solid origin or foundation. They are not like Catholic, Anglican, or Orthodox churches. Mushroom churches are those churches which start when a person who calls himself a pastor goes and rents a room, decorates it, and convinces people to join him, that he has been given powers to summon signs and miracles from God.

Imagine how a man that have been dying of hunger for years claim that you should come to him that he has been called and can transform you financial status. It is the common thing they usually say that make hungry Nigerians yield to their deceptions. The people come and the so-called pastors use their tricks to collect the money that is remaining in the pockets of the poor ones in the country.

Some of the pastors go to the extent of using magical and devilish powers in running their church business in the name of God’s power. They give the congregations what they want without them knowing the source of their so-called power. If it is for women who are in search of babies, the babies may be given to them through devilish powers but continue to cause headaches to the children’s parents till death. Today, one of the children will steal money from a bank through armed robbery and tomorrow kill an innocent person, operating under the influence of the devil.

Pastors have on many occasions been caught in adultery and fornication. It is not new and it is certain that you as a reader have heard about such shameful acts. Through newspapers, televisions, and other channels, the immoral acts committed by Nigerian pastors have been observed. In early November of 2014, there was a radio program from Blaze FM, Orifite, on a pastor that impregnated an 11-year-old girl. According to the report, the girl was impregnated by the pastor when her mother took her to the pastor’s place for prayers, and left for her own business.

Internet Fraud

Fraudulent Internet activity is another face of corruption. Graduates and non-graduates who lacks the knowledge and skills to help them earn money find joy in Internet fraud. It is a criminal act and deserves serious punishment. Among the classes of offences committed in Nigeria, both the Senate and members of House of Representative are working hard to see that those caught in such fraud act face the punishments they deserve without any favour.

Some Nigerians, who are mainly youths, have been scamming their fellow citizens using illegal means. Some host websites online and claim to be giving jobs to job seekers and scam any who fall prey to their tricks. They tell job seekers to make certain payments for processing documents without them knowing that they will not be issued any job. Some Nigerians have been stolen from by cyber criminals.

The level of corruption in Nigeria has made many citizens of the country show no respect to holy and Godly affairs. This is seen in the report given by the spiritual director of Adoration Ministry Enugu Nigeria, AMEN, news report on December 2014. According to the spiritual director, Rev. Father Ejike Mbaka, some Nigerians impersonated him through websites and social media sites, specifically Facebook. He lamented that the bad guys used his picture to deceive people and collect money from them while claiming they were Fr. Mbaka. The notable reverend father made it clear that he is not on Facebook and neither does he own a website with his name. He went further to say that anyone caught in that act will dance ti the music that he or she deserves and the police have been involved to find those criminals out.

Corruption in the Customs Service

Are Nigerian customs really doing the work they are called to do correctly? The customs service of Nigeria is the organization that is authorized to clear goods that are imported into the country. This group is not free from the menace of corruption.

In most occasions, you must pay bribes to customs before your goods are cleared. Many containers that are being held captive by customs because the owners are not willing to pay the large amount of money being demanded.

Causes of Corruption

A number of things cause corruption, and among them are:

• Greed
• Poor youth empowerment
• Poverty
• Unemployment

Greed

Greed has caused a lot of crises in the world, including in Nigeria. It is because of greed that political leaders embezzle from the funds they are supposed to use for national development for their own selfish needs.

Poor Youth Empowerment

Poor moral youth empowerment is a contributor to corruption. Internet fraud, sexual harassment by male CEOs, and other bad acts are because Nigerians lack understanding on the importance of youth empowerment. When parents and governments empower youths both financially and morally, the level of corruption among them will diminish.

Poverty

According to international standards of poverty, a person is said to be poor when he lives under $1.25 (₦210, though it varies) per day. There are many poor people in Nigeria, and poverty pushes them into corruption. According to World Bank Group, in 2004, 63.1% of Nigerians were poor. The poverty level increased in 2010. In 2010, 68% of the Nigerian population were estimated to be poor. A person can take bribes to commit crime because he is poor. It is one of the reasons why the poor youths in the country collect bribes to work as thugs for Nigerian politicians.

Unemployment

Unemployment is one of the major challenges in Nigeria and does not need much explanation because it has broken the hearts of many citizens. People are pushed into corrupt practice because of high unemployment. An unemployed citizen can indulge in corruption to make money and live better.

Effects of Corruption

The negative consequences of corruption are many, and among them are:

• Poor investment
• Rise in poverty
• Poor national development
• National crises

Poor Investment

Unemployment in Nigeria would have been eradicated to some extent if only investors were attracted to it. Companies that would have invested in Nigeria are afraid because they do not know if the corrupt practice will ruin their industries in time. Because of this, they refuse to invest in Nigeria.

Rise in Poverty

When the heads of public service are busy laundering the money that is supposed to be used to create employment for the masses and reduce poverty, what happens is that there will be a rise in the poverty level of the country. Just like the rise in poverty as statistically shown between 2004 and 2008. Since the government is selfish and does not want to help the poor, poverty continues to rise in Nigeria.

Poor National Development

Any country with high corruption is likely to experience developmental bankruptcy. A situation where some CEOs indulge in corrupt practices to make their money means that economic development will suffer. When Nigerians keep on shifting the country’s currency to foreign countries, there will be less economic development in Nigeria.

National Crises

So many crises in Nigeria today are as a result of corruption. The insecurity in Nigeria brought about by Boko Haram is a consequence of corruption. Corrupt politicians are fighting the government of President Goodluck Jonathan using Boko Haram as their agent because they do not want him to succeed. The attacks by Boko Haram have caused disorderliness in Nigeria and seriously affected the economy of the country.

Eradicating Corruption

Corrupt Nigerians do not truly understand the harm they are causing to other citizens. Corruption can be reduced by these possible remedies:

• Self-Satisfaction
• Institution of strong anti-corruption groups
• Employment generation
• Proper government funding of schools
• Treating all citizens equally

Self-Satisfaction

Self-Satisfaction in this context implies being content with what one has. When the leaders of Nigeria are satisfied with the salary they are paid and use them in the right way, the issue of embezzlement and money laundering will be history. Managers who are satisfied with what they are paid will not have time to indulge in corruption to make more money.

Institution of Strong Anti-Corruption Groups

Creating strong anti-corruption institutions is another arsenal to win the fight against corruption. This group is to work independently with the government to ensure transparency. Anyone who is caught in corrupt practice by the group should experience the consequences decided by the anti-corruption agency. That he is a minister or governor of a state should not be an excuse from facing the punishment he is to receive according to the Constitution of Nigeria.

Employment Generation

The unemployed in the country find themselves involved in corruption mainly because they want to make money to meet the demand of the day. Governments and capable hands should endeavour to generate more jobs for citizens to get employed and paid in return. A busy mind may find it difficult to indulge in corruption because he is being paid adequately.

Proper Government Funding of Schools

Understanding the importance of skill acquisition will go a long way to propel them to develop all the schools in Nigeria. When more attention is paid to the tertiary institutions in the country, it will produce graduates who are employable. Installation of the necessary machines needed in universities will help Nigerian graduates acquire skills and use them to generate income, even if no company employs them after graduation.

Self-employment will make graduates more determined in the work they do and will prevent them from corruption like Internet scams, kidnapping and the rest.

Treating All Citizens Equally

Treating any offender in the country equally will help reduce corruption. Nobody is above the law and any who acts contrary to it should be given the punishment that he or she deserves. That she is the Minister of Aviation or Governor of the Central Bank of Nigeria should not count in this case. If any minister or head of state is given the punishment he deserves for corruption, others will learn and separate themselves from any corrupt practice.

Conclusion

Corruption is a cankerworm that has eaten deep into the fabric of Nigeria. Discussed are the many faces of corruption, causes, effects, and the possible solutions.

References

• Morris, S.D. (1991). Corruption and Politics in Contemporary Mexico. University of Alabama Press, Tuscaloosa
• Danladi (2007). Nigeria Ranks 148 on the 2007 Corruption Perception Index. Naira Land Publication
• Uzochukwu, M. O. (2013). Challenges in Nigeria and Solutions on how to resolve them.
• Oluwashina, O. (2013). Nigeria Official Banned for Bribe. BBC Sport News Lagos.
• Oyinola, O. A. (2011). Corruption Eradication in Nigeria: An Appraisal. Library Philosophy and Practice
• The Storey Report. The Commission of Inquiry into the administration of Lagos Town Council
• Hector, I. (2004). SKJ SAGA: SWISS GOVT FREEZES $ 100M ACCOUNTS. A Publication of Vanguard, Nigeria.
• World Bank Group. (2013), Poverty and Equity.

http://hubpages.com/education/Corruption-in-Nigeria

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CAUSES AND EFFECTS OF CORRUPTION ON SOCIETY DEVELOPMENT

CAUSES AND EFFECTS OF CORRUPTION ON SOCIETY DEVELOPMENT
BY
Mu’azu Mohammed Yusif
Department of Political science,
Bayero University, Kano


Presented at a seminar Organized by the code of conduct Bureau, held in Jigawa 3 Star Hotel, Dutse, on 14th November, 2000


Introduction
I have noted that the central theme of this Workshop/seminar is “combating corruption and moral Decadence in the Local Government Administration”. Since the country is now operating under a democratic constitution, with huge financial resources accruing to the Local Government Administrations, and so high expectation from the people, and yet no visible development can be seen in the Local Government Areas, at least in Jigawa state, it is most appropriate to discuss this issue.

The little contribution I am going to make in this seminar is on the subject of, corruption and its effects and how it can be controlled in Nigeria.

In recent years, with the introduction of Structural Adjustment Programme, Mathew Parris has observed that “corruption has become an African epidemic. It is impossible to overstate the poisoning of human relations and the paralyzing of initiative that the corruption on the African scale bring”.

A recent report by the International Human Rights Organization came out with Nigeria taking the first position on the list of the most corrupt nations in the world. Indeed, in Nigeria, corruption is so rampant that it is worthless to talk of any person who is not corrupt. May be it is better to say who is more or less corrupt.

This reality of corruption in Nigeria posits a great challenge to any government or agency of government, which is determined to control and wipe out this evil to National progress.

This contribution is aimed at drawing the attention of the participant at this seminar on consequences of corruption and how to control it.

But, before going into all these we need to clarify what is corruption and the types of corruption. This is very essential because, in order to fight corruption we must understand what it is and what are its manifestations.



Corruption
The word corruption has varied meanings defending on the political culture and civilization of the people. In many Nigerian communities a man or community of men can give or sent a gift to an officer, in appreciation of his good performance. This is called gaisuwa in Hausa. But in western culture, that is corruption. Likewise if you bend a rule or a procedure to favour somebody, although in western civilization may be defended as a discretionary power of the officer, which may be covered by the constitution, but in another legal procedure, that will be called a corrupt practice. In many cultures, including the Nigeria’s, corruption is reduced to taking money to give something of a public nature. It is far beyond that.

However, it is generally accepted that it involves inducement intended to pressure an official from carrying out his functions in accordance with the set rules and the procedures. It includes act of arrogation of benefits for oneself or ones friends and relatives to the detriment of the right or entitlement of others regarding the same or similar benefit. Thus, to be corrupt is to be opened to bribery and dishonesty, and to be immoral.

In view of the conception of corruption above, the legal definition of corruption in the Nigerian legal statutes and codes are deficient in that they are vague, unclear and virtually exclusive of only public and judicial officers, leaving out individual, private and corporate bodies from access to the law (even in the present democratic dispensation the anti-corruption law is yet to be massively circulated). More damaging to these statutes is that they do not correspond to the common mans and social concept of corruption. The common mans conception of corruption covers all instances of bribery, kickbacks, favouritism, nepotism and the use of value influence in running of public affairs.

Manifestations of Corruption in Nigeria
Nigeria is a corrupt society. Corruption has pervaded every sphere of human activity such that in every endeavour – economic, social, political, etc. corruption is the determining factor in the relationship between the people involved.

The past and present history of Nigeria has recorded many cases and exhibits of many types of corruption. Since the code of conduct Bureau is here and is the organizer of this seminar, I need not mention specifically these cases. Instead I will attempt to highlight types of corruption, which the Bureau may wish to give attention, if the problem is to be uprooted from Nigeria’s society.

Dogon-yaro posited two types/courses of corruption in the business world. Each corresponds to the group or organisation involved. The first is in trading and distribution of goods. This involves and perpetuates corruption by protecting, hoarding and also speculation of commodities. The second involves general contractors who operate through large financial conspiracy with power holders, dictating policies for states and federal government. That is corruption in business relationship, which is now very common even in international business.

Femi Adekunle, on the other hand, identifies other forms of corruption. At one level it is the misuse of public office or public responsibility for private (personal or sectional) gains. At another level it involves the use of public or private funds in order to acquire and return political power or to get government policies passed and accepted. The second is called commercial/economic corruption. These are acts by those transacting business with various level of Government – Federal, State and Local Government, by offering kickback or commissions to government officials for public work contract. The third is called administrative professional corruption which involves the casual but deliberate and largely criminal action by top administrative and professional personnel who abuse their position and their professional statuses for private material and social, political gains. They operate via falsification of accounts, embezzlement of corporate or government funds through mileage and other claims, fraudulent tax returns, and cover-up of professional misdeeds.

The fourth form of corruption is the organised corruption. Mostly common in countries of Western Europe and America, it is a relatively large-scale and complex criminal activity carried on by groups of Mafia, mostly elites and their control agents who are loosely as tightly organized for the enrichment of those participating or for financing of projects of the group, for political or business purposes. The members of these groups are influential, connected to information sources and control.

Their methods of operations include either violent attack or quite manipulation of government treasury, big business centres or big private individuals. The fifth one is a mere petty corruption of lower ranked workers like messengers, clerk, security men etc. who receive some returns for services offered, especially in government establishments.

Corruption and the Development Agenda
As I argued at the beginning of this paper corruption in Nigeria is a normal affair. Borrowing from LeVine, there is in particular ‘a culture of political corruption’ in which corruption is the normal stuff of politics. Indeed, in Nigeria, hardly an uncorrupt person will be anything in the scheme of things in running the government. If you were not corrupt, you would be marginalized if not got rid of. And if you are corrupt, you must be prepared to follow anything without personal initiative or ideas of an alternative policy.

Especially, of recent, political corruption has become an increasingly, important issue, such that other types of corruption is allowed to thrive unchecked or is even encouraged. The noise against corruption by the World Bank and other International agencies and government of Western Europe and America is only referring to political corruption. The others are condoned by the same agencies and governments.

Thus, political corruption will be our major attention in relation to Development Agenda. First, what is development? There are many definitions of development. Petit Robert dictionary contains the following entry as meaning of development. These are growth blossoming, progress, extension, expansion. These words imply that forward advancement of anything is development. Whether economic, political, or social. Then the report of the south commission, under the chairmanship of the former Tanzanian President late Julius Nyerere, while summing up the aspirations and policies of developing countries, defined development as “a process which enables human beings to realize their potential, build self-confidence, and lead lives of dignity and fulfilment. It is a process, which frees people from the fear of want and exploitation. It is a movement away from political, economic and social oppression”. Furthermore, the Human Development Report of 1991, published by the United Nations Development Programme, stated; “the basic objective of human development is to enlarge the range of people’s choice to make development more democratic and participatory. These choices should include access to income and employment opportunities, education and health, and a clean physical environment. Each individual should also have the opportunity to participate fully in community decisions and to enjoy human, economic and political freedoms”.

That is development. For the purpose of this paper, it can be seen in the following two ways:-
1. Economic upliftment of the people and the society in general
2. Political involvement of the people to determine and shape a responsive political system

Now, how does political corruption affect both economic and political development of Nigeria? In western model of economic development corruption, of whatever type is functional for economic development. It is said that in developing countries corruption lubricate development. It is only recently when the interest of western theory and of western world has changed because of their devotion to promote neo-liberal agenda that all the western financial agencies and governments are hypocritically talking against corruption.

Set against corruption on high scale, the IMF and the World Bank have even promoted the fight against political corruption as a condition for fund facilities to implement Structural Adjustment Programme. But the reality is based on the assumption that political corruption is caused by interventionist state and in order to wipe out corruption a neo-liberal state should be put in place. That is a state which will withdraw all services e.g. education, health, withdrawal of all sorts of subsidies, commercialization and privatization of public enterprises, etc.

The Nigeria’s state has already become the so-called neo-liberal state pursuing the neo-liberal agenda. But, does that eliminate corruption from Nigeria’s society.

The reality is that under the present economic development agenda, corruption and political corruption in particular has increased and become wide spread more than any moment in the past history of Nigeria.

Undoubtedly, corruption has a negative impact on all indicators of economic development. Corruption, especially political corruption breeds lack of productivity, lack of initiative and creativity to put sound policies, which could generate further development. Thus, the rate of economic growth, domestic and foreign investment, employment and fair income distribution all suffered and retarded as a result of corruption. In fact, the problems of corruption have increasingly pushed Nigeria’s society and economy to the bricks of disaster, as the current lack of progress and the political crisis between the legislature and the executive shows. This political crisis is a great revelation of people in the leadership of Nigeria, overwhelmed by corruption of office can go to any extent including the generation of tribal, regional, and religious support to protect their loot.

It is the same scenario of similar or different dimensions of political conflict we can find in states and local government area. As one keen observer has noted, wherever there is relative peace and understanding between the various officials is where the loot of political corruption spreads to every body in the team.

Mechanisms of Controlling Corruption
Every government in Nigeria recognized corruption as a major obstacle to easy development. Sometimes government is changed by the Armed forces because of corruption. And there are many approaches to stem the tides of, indiscipline, corruption and moral decay in Nigeria. The approaches to address corruption ranges from the establishment of code of conduct bureau (the organizers of this seminar) by Decree, as an enforcement, investigative and detective body to trace corrupt practices and cause punishment by the law. Others include the public complaint commission, the various Judicial Administrative Tribunals of inquiry into scandals by public officers. The ethical revolution committee initiated by President Shehu Shagari in 1983 as well as the War Against Indiscipline by General Buhari and Idiagbon in 1985 fall into the same agenda of fighting corruption in Nigeria.

The above efforts by various governments to tackle the problem of corruption has indicated the extent to which corruption has gone deep in the lives of Nigerians. In his famous Jaji declaration in 1977 General Obasanjo bemoaned the indiscipline, corruption, moral decay and lack of patriotism, which characterized various facet of Nigeria’s life. You would recall that Obasanjo, in the Jaji Declaration exalted all Nigerians to be more discipline, more humane and more considerate towards the welfare of their fellow citizens, and to eschew materialism, flamboyant display of wealth, and unnecessary acquisitive tendencies.

President Obasanjo made that statement in 1977 when he was the Military Head of State. Now, he is heading Democratic Government. So, what did he initiate in the present democratic set up to deal with the problem of corruption? The approaches mentioned above may have some shortcomings. Therefore, could not eradicate the problem. For example, except perhaps the code of conduct bureau and the public complaints commission, none of the other approaches is found in law book.

It is particularly significant that now, there is anti-corruption law and anti-corruption commission. But we are yet to see how the anti-corruption law can be implemented. I am not even sure whether the law has taken into recognition a total conception of corruption and what can be regarded as corruption. In order to identify what may be called corruption I propose the Chilean example. In 1994, the Chilean Commission on Public Ethics was formed and in July, the same year the commission presented to President Eduardo Frei-Tagle its report (see Appendix I here attached titled “Public Ethics; Probity, Transparency, and Accountability at the service of the citizen”.

The report covers so many rampant cases, which may be called corruption practices in the society. There are forty recommendations, which are summarized in the Appendix attached to this paper. I believe that something of such nature will create proper grounds of understanding corruption and fighting it, including enshrining in the constitution of the Federal Republic of Nigeria those that must be justifiable.

Conclusion
That is an essay on corruption and development agenda in Nigeria. It is worth to restate at the concluding part of this essay that although there are many forms of corruption, but political corruption in particular started with siphoning away huge amount of money from the country’s treasury by public officials, at all levels of government to various foreign accounts as a result of their selfish interest. This is partly done through contracts awards and inflating the cost of the contracts with the consent of both contractors and public officials of various offices. Little or no regards were given on the viability of such projects and little or no effort is being made to monitor and supervise its completion. In some cases of some government, even in the present dispensation of democratic governance, the corruption is very crude. Some state governors and local government chairmen have become so crude in corruption that government funds are deposited in personal Saving Accounts which accrue interests not to the government but to the person.

Also some governors and local government chairmen are the sole contractors of all projects and purchases by their governments. Some go and do it directly while some put their friends and brothers as middlemen to do the purchases.

All these happen either because of personal aggrandizement, sectional purposes, absence of clear programme and legal framework to deal ruthlessly with the problem or it may be because of poor pay to some categories of public servants.

Indeed, it is because of the corrupt practices of Nigeria’s public service functionaries that, neither the landscape of Nigeria not the standard of living of its citizens has significantly improve since independence, despite the huge monetary resources which the government has been able to accumulate over the years. Also, at level of political development, Nigeria remains perpetually incapable of resolving its political crisis, including the present crisis between the legislature and the executive.

 

Corruption in Nigeria: A New Paradigm for Effective Control

By Victor E. Dike

There are many unresolved problems in Nigeria, but the issue of the upsurge of corruption is troubling. And the damages it has done to the polity are astronomical. The menace of corruption leads to slow movement of files in offices, police extortion tollgates and slow traffics on the highways, port congestion, queues at passport offices and gas stations, ghost workers syndrome, election irregularities, among others. Even the mad people on the street recognize the havoc caused by corruption - the funds allocated for their welfare disappear into the thin air. Thus, it is believed by many in the society that corruption is the bane of Nigeria. Consequently, the issue keeps reoccurring in every academic and informal discussion in Nigeria. And the issue will hardly go away!

Some writers say that corruption is endemic in all governments, and that it is not peculiar to any continent, region and ethnic group. It cuts across faiths, religious denominations and political systems and affects both young and old, man and woman alike. Corruption is found in democratic and dictatorial politics; feudal, capitalist and socialist economies. Christian, Muslim, Hindu, and Buddhist cultures are equally bedeviled by corruption. And corrupt practices did not begin today; the history is as old as the world. Ancient civilizations have traces of widespread illegality and corruption. Thus, corruption has been ubiquitous in complex societies from ancient Egypt, Israel, Rome, and Greece down to the present (Lipset and Lenz 2000, pp.112-113). This does not, however, mean that the magnitude of corruption is equal in every society Some countries are more corrupt than others! As George Orwell notes in his widely read book, Animal Farm: All animals are equal, but some animals are more equal than others (June 1996, p.109).

Since corruption is not new, and since it is a global phenomenon, it is not peculiar to Nigeria. However, corruption is pandemic in Nigeria (and in many other African and Asian nations); the leaders as well as the followers are corrupt. Consequently, it has defied all the necessary medicines. If there is a lack of control of corruption in every sphere in the nation, it is then like the old saying: When water chokes you, what do you take to wash it down? (The Philosophy of Aristotle, 451-ME2783, p.355).

This paper, therefore, adopts a new approach to tackle the menace of corruption in Nigeria. And a broad definition of the phenomenon matters in the society for its effective control.

Definitions of Corruption

Perhaps, because corruption has received an extensive attention in the communities, and perhaps, due to the fact that it has been over-flogged in the academic circles, corruption has received varied definitions. Corruption has broadly been defined as a perversion or a change from good to bad. Specifically, corruption or corrupt behavior involves the violation of established rules for personal gain and profit (Sen 1999, p.275). Corruption is efforts to secure wealth or power through illegal means private gain at public expense; or a misuse of public power for private benefit (Lipset & Lenz, 2000, p.112-114).

In addition, corruption is a behavior which deviates from the formal duties of a public role, because of private [gains] - regarding (personal, close family, private clique, pecuniary or status gains. It is a behavior which violates rules against the exercise of certain types of [duties] for private [gains] - regarding influence (Nye, 1967). This definition includes such behavior as bribery (use of a reward to pervert the judgment of a person in a position of trust); nepotism (bestowal of patronage by reason of ascriptive relationship rather than merit); and misappropriation (illegal appropriation of public resources for private uses (Banfield 1961). To the already crowded landscape (Osoba 1996), adds that corruption is an anti-social behaviour conferring improper benefits contrary to legal and moral norms, and which undermine the authorities to improve the living conditions of the people.

Even though some of these definitions of corruption have been around for over decades, the recent development in Nigeria where discoveries of stolen public funds run into billions of US Dollars and Nigeria Naira, make these definitions very adequate and appropriate. Corruption is probably the main means to accumulate quick wealth in Nigeria. Corruption occurs in many forms, and it has contributed immensely to the poverty and misery of a large segment of the Nigerian population.

The Nature and Characteristics of Corruption

Some studies have taken a holistic (broader) approach in the discussion of corruption by dividing it into many forms and sub-divisions. These are:

i)               Political Corruption (grand);

ii)             Bureaucratic Corruption (petty); and

iii)            Electoral Corruption.

Political corruption takes place at the highest levels of political authority. It occurs when the politicians and political decision-makers, who are entitled to formulate, establish and implement the laws in the name of the people, are themselves corrupt. It also takes place when policy formulation and legislation is tailored to benefit politicians and legislators.  Political corruption is sometimes seen as similar to corruption of greed as it affects the manner in which decisions are made, as it manipulates political institutions, rules of procedure, and distorts the institutions of government (NORAD, ch.4, Jan. 2000; The Encyclopedia Americana, 1999).

Bureaucratic corruption occurs in the public administration or the implementation end of politics. This kind of corruption has been branded low level and street level. It is the kind of corruption the citizens encounter daily at places like the hospitals, schools, local licensing offices, police, taxing offices and on and on. Bureaucratic petty corruption, which is seen as similar to corruption of need, occurs when one obtains a business from the public sector through inappropriate procedure (see NORAD, ch.4, 2000).

Electoral corruption includes purchase of votes with money, promises of office or special favors, coercion, intimidation, and interference with freedom of election [Nigeria is a good example where this practice is common. Votes are bought, people are killed or maimed in the name of election, losers end up as the winners in elections, and votes turn up in areas where votes were not cast]. Corruption in office involves sales of legislative votes, administrative, or judicial decision, or governmental appointment.  Disguised payment in the form of gifts, legal fees, employment, favors to relatives, social influence, or any relationship that sacrifices the public interest and welfare, with or without the implied payment of money, is usually considered corrupt (The Encyclopedia Americana, 1999).

Other forms of corruption include:

A) 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, etc. (Bayart et. al 1997, p.11).

B) Fraud: It involves some kind of trickery, swindle and deceit, counterfeiting, racketing, smuggling and forgery (Ibid. p.11).

C) Embezzlement: This is theft of public resources by public officials. It is when a state official steals from the public institution in which he/she is employed.  In Nigeria the embezzlement of public funds is one of the most common ways of economic accumulation, perhaps, due to lack of strict regulatory systems.

D) 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 [The police and custom officers are the main culprits in Nigeria] (Bayart et. al 1997, p.11).

E) Favoritism: This is a mechanism of power abuse implying a highly biased distribution of state resources. However, this is seen as a natural human proclivity to favor friends, family and any body close and trusted.

F) Nepotism: This is a special form of favoritism in which an office holder prefers his/her kinfolk and family members. Nepotism, [which is also common in Nigeria], occurs when one is exempted from the application of certain laws or regulations or given undue preference in the allocation of scarce resources (NORAD, ch.1, ch.2 & ch.4, Jan. 2000; Amundsen, 1997; Girling 1997; also see Fairbanks, Jr. 1999).

For effective control of corruption in Nigeria, the society must develop a culture of relative openness, in contrast to the current bureaucratic climate of secrecy. And a merit system (instead of the tribal bias, state of origin and nepotism or favoritism, which have colored the landscape) should be adopted in employment and distribution of national resources, etc. More importantly, the leadership must muster the political will to tackle the problem head-on (see report on Second Global Forum on Fighting and Safeguarding Integrity, May 28-31, 1999). Regardless of where it occurs, what causes corruption or the form it takes, the simple fact remains that corruption is likely to have a more profound and different effects in less developed countries, than in wealthy and developed societies. This is due to a variety of conditions, which cannot deviate significantly from the nature of their underdevelopment (Nye 1967). Because of the corrosive effects of corruption in national development, and given the relative limited resources or poverty in the region, Africa, and indeed Nigeria, can least afford to be corrupt.

The Causes of Corruption

Recently, the International Olympic Committee (IOC), had to relieve some of its officials of their posts because they had taken bribes. And all the commissioners of the European Union (EU), resigned because they, too, had been found to be corrupt beyond acceptable limits. In the United States, Enron Corporation, an energy giant and WorldCom, a telecommunication company, were charged with fraud. The companies manipulated their balanced sheets, profit and loss account and tax liabilities. Enrons accountant, Arthur Andersen, collapsed for greed and fraud as it was charged with obstruction of justice in connection to the Enron probe (Reuters June 27, 2002; The Observer (UK), June 9, 2002). These are tip of the iceberg!

Yet, analysts tend to believe that developed countries are less corruption than developing nations. One of them points out that 'throughout the fabric of public life in newly Independent Stateruns the scarlet thread of bribery and corruption' (Wraith and Simpkins 1963). Another writer notes that it will probably be "difficult to secure [by honest means] a visa to a developing country that would be the subject of a corruption study (Nye 1967).

Why is corruption a viable enterprise in the Third World, nay, Nigeria? The causes of corruption are myriad; and they have political and cultural variables. Some evidence points to a link between corruption and social diversity, ethno-linguistic fractionalization, and the proportions of countrys population adhering to different religious traditions (Lipset and Lenz, 2000). 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, we shall focus on the fundamental factors that engender corrupt practices in less developed nations, including Nigeria. Some of the factors include:

1)       Great inequality in distribution of wealth;

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

3)       Conflict between changing moral codes;

4)       The weakness of social and governmental enforcement mechanisms; and

5)       The absence of a strong sense of national community (Bryce, 1921).

The causes of corruption in Nigeria cannot deviate significantly, if at all, from the above factors. However, obsession with materialism, compulsion for a shortcut to affluence, glorification and approbation [of ill-gotten wealth] by the general public, are among the reasons for the persistence of corruption in Nigeria  (Ndiulor, March 17, 1999). It has been noted that one of the popular, but unfortunate indices of good life in Nigeria, is flamboyant affluence and conspicuous consumption. Because of this, some people get into dubious activities, including 'committing ritual murder for money-making.' The cases of ritual murder abound in Nigeria, but a few examples will suffice. A middle-aged woman and an SSS3 female student were reportedly beheaded in Akure, the Ondo State capital recently (ThisDay News, July 7, 2002). Another case was that of the 1996 Clement Duru (alias 'Otokoto') ritual killing episode at Owerri in Imo State. A well-known proprietor of 'Otokoto' hotel, Clement Duru was reported to have been killing and selling the body parts of some of the travelers that checked into his hotel at Owerri. And recently, another incident of ritual killing was reported in the area (see Ogugbuaja, The Guardian, May 16, 2002).

The lack of ethical standards throughout the agencies of government and business organizations in Nigeria is a serious drawback.  According to Bowman, ethics is action, the way we practice our values; it is a guidance system to be used in making decisions. The issue of ethics in public sector [and in private life] encompasses a broad range, including a stress on obedience to authority, on the necessity of logic in moral reasoning, and on the necessity of putting moral judgement into practice (Bowman 1991). Unfortunately, many officeholders in Nigeria (appointed or elected) do not unfortunately, have clear conceptions of the ethical demands of their position. Even as corrupt practices are going off the roof, little attention, if any, is being given to this ideal.

Other factors are poor reward system and greed; Nigerias reward system is, perhaps, the poorest in the world. Nigeria is a society where national priorities are turned upside down; hard work is not rewarded, but rogues are often glorified in Nigeria. As Authur Schlesinger said of America in the 60s, Our [the] trouble [with Nigeria] is not that our capabilities are inadequate. It is that our priorities - which means our values are wrong (Howard (ed.) 1982). And peer community and extended family pressures, and polygamous household are other reasons (Onalaja & Onalaja, 1997). The influence of extended family system and pressure to meet family obligations are more in less developed societies. Lawrence Harrison acknowledged that the extended family system is an effective institution for survival, but notes that it posses a big obstacle for development (1985, p.7).

According to Edward Lotterman, bad rules and  ineffective taxing system, which makes it difficult to track down peoples financial activities, breed corruption (Pioneer Press, April 25, 2002). Ineffective taxing system is a serious problem for Nigeria. The society should institute appropriate and effective taxing system where everyone is made to explain his or her sources of income, through end-of-the-year income tax filing. The recent ban on importation of Tokumbo (used car) over five years of manufacture, is in our opinion, an example of a bad policy that could breed corruption. If this anti-business ban is not reviewed or discarded completely, it will, as many critics have noted affect the economy, as those making a living in the business will be exposed to poverty, and subsequently, corruption. Businessmen would be forced to bribe the corrupt custom officials (to allow the cars in), causing the state to lose the needed tax revenue. In addition, the policy will divert business to other neighboring countries (The Vanguard, June 4, 2002). To tame corruption, the society should try to get rid of regulations that serve little or no purposes.

The lukewarm attitude of those who are supposed to enforce the laws of the land (judges, police officers and public officials) could lead to people engaging in corrupt behavior, knowing fully well that they would get away with it. Some cultural and institutional factors lead to corruption. For instance, Nepotism and the strength of family values are linked to the feeling of obligation. The work of Robert K. Merton has demonstrated the relationship between culture and corruption (1968). His means-ends schema implies that corruption is at times a motivated behavior responding to social pressures to violate the norms, so as to meet the set goals and objectives of a social system.

Lipset and Lenze note that those going through corrupt means (through the back door, so to say), to achieve their objectives have little or no access to opportunity structure. The hindrance to economic opportunity, according to the study, could be a result of their race, ethnicity, lack of skills, capital, material and other human resources. They note that cultures that stress economic success as an important goal but nevertheless strongly restricts access to opportunities will have higher levels of corruption (2000, pp. 112-117). This probably explains the high incidence of corrupt behaviors in Nigeria. Many Nigerians are highly achievement oriented, but they have relatively low access to economic opportunities. For example many civil servants work for months without getting paid (ThisDay, July 7, 2002; Daily Trust, July 9, 2002). Yet, the society expects them to be honest and productive. Many of those civil servants working without pay are parents, who are expected to train their children in schools with empty wallet. How can they do that? Are they magicians? No! Under this condition, many citizens would reject the rule of the game (societal norms) and criminally innovate to make ends meet.

The brazen display of wealth by public officials, which they are unable to explain the source, points to how bad corruption has reached in the society. Many of these officials before being elected or appointed into offices had little or modest income. But now, they are owners of many properties around the world (ThisDay Online, June 24, 2002). In contrast with the United States, many of the elected officials are known to be modest in living (There are some bad eggs in their midst, but they face the laws when they are found wanting). The 2000 financial disclosure forms released in 2001, which is required annually for all 535 members of Congress (House and Senate members), show that many of them live relatively modest. (The financial forms show sources of outside income, assets, liabilities, speech honoraria donated to charity and travel paid by private interests; by law, honoraria are donated to charity). The main asset of the Senate Majority Leader, Tom Daschle (the nations highest-ranking Democrat, with direct influence over billions of federal dollars), is a one-half share in a house in Aberdeen, South Dakota, given by his mother and worth between $50,000 and $100,000 in income (CNN News, June 14, 2001).  If he were a Nigerian, he could have owned many million-dollar homes in beautiful areas in London and the United States (all over Nigeria too), and decorated himself with countless traditional titles.

The work of Edward Banfield shows a relationship corruption and strong family orientation. The study, which helped to explain high levels of corruption in southern Italy and Sicily, notes that corruption is linked to the strong family values involving intense feelings of obligation. That was the case with the Mafia in Italy where some people were seen to have the attitude of anything goes that advances the interests of ones self and family (1958). All these, including bad practices of non-payment or late payment of workers, bad business culture of delays and refusal, or late payment for services executed by business establishments in Nigeria are forms of corruption. These kinds of behaviors have the tendency to scare away foreign and local investors, with tremendous negative effects on the economy (Daily Trust, July 9, 2002).

The Effects of Corruption

The effects of corruption on a nations socio-political and economic development are myriad. The negative effects impact economic growth as it, among other things, reduces public spending on education (Mauro, 1997; and 1995). Lipset and Lenz note that the effect on growth, is in part, a result of reduced level of investment, as it adds to investment risk (2000). The effect of corruption on education comes from the fact that the government spends relatively more on items to make room for graft (Shleifer & Vishny, 1993; Lipset & Lenz, 2002). And corrupt government officials would shift government expenditures to areas in which they can collect bribes easily. Large and hard-to-manage projects, such as airports or highways, make fraud easy. In addition, poverty and income inequalities are tied to corruption (Lipset & Lenz 2000). Development projects are often made unnecessarily complex in Nigeria to justify the corrupt and huge expense on it. The new national stadium in Abuja, which is said to have gulped millions of Naira more than necessary, is a case in point.

Despite the immoral aspect and pernicious effects of corruption, some scholars have argued that corruption can be beneficial to political development or "political modernization" (Pye, March 1965). Political modernization or development means growth in the capacity of a society's governmental structures and processes to maintain their legitimacy over time (presumably in time of social change) by contributing to economic development, national integration and administrative capacity, and so on (Nye 1967). We would not get entangled with the different scales used for measuring political development. Nevertheless, Max Gluckman opined that scandals associated with corruption sometimes have the effect of strengthening a value system of a society as a whole (1955). This is probably true in relation to Nigeria. The scandals associated with the Abacha era (looting of the treasury and human rights violations) have given the nation some food for thought. Nigeria is still perplexed and reoccupied with the issues of how to strengthen the nations essential governmental structures to avoid the reoccurrence of these kinds of looting and atrocities in future.

In addition, some writers have noted that corruption may help to ease the transition from traditional life to a modern political life. Some have argued that the vast gap between literate official and illiterate peasant, which is often characteristic of the countryside, may be bridged if the peasant approaches the official bearing traditional gifts or their (corrupt) money equivalent. In this respect, McMullan points out that  "a degree of low-level corruption" can 'soften relations of officials and people' (July 1961).  And Shils notes that corruption can 'humanize government and make it less awesome' (1962). These observations are common occurrences in Nigeria where communities pay political visits to their Governors, Commissioners and top civil servants with cows, wines, cola nuts and money stuffed in Ghana must go (bags) in other to get them attend to their local problems.

The apparent benefits of corruption notwithstanding, we are here mainly concerned with the evils of corruption. Any right thinking person in Nigeria where ubiquitous corruption has ravaged the society will find it impossible to agree that corruption is beneficial, no matter how plausible it may be.

The Evils of Corruption

Many studies have been conducted that show the evils or consequences of corruption. And corruption has taught the Nigeria a dangerous and wrong lesson that it does not pay to be honest, hardworking and law-abiding. Through corrupt means many political office holders acquire wealth and properties in and outside Nigeria; and many display their wealth (which is beyond the means), but the society does not blink. This has made politics a big business in Nigeria, because anything spent to secure a political office is regarded as an investment, which matures immediately one gets into office (The Guardian, July 14, 2002).

Corruption wastes skills as precious time is often wasted to set up unending committees to fight corruption, and to monitor public projects. It also leads to aid forgone. Some foreign donors do not give aid to corrupt nations. For instance, the International Monetary Fund (IMF) has withdrawn development support from some nations that are notoriously corrupt. And the World Bank has introduced tougher anti-corruption standards into its lending policies to corrupt countries. Similarly, other organizations such as the Council of Europe and the Organization of American States are taking tough measures against international corruption (OECD, December 1997). Corruption is politically destabilizing, as it leads to social revolution and military takeovers. Most "post-coup rationalizations" in less developed worlds point to corruption. The General Buhari's post-coup broadcast to Nigerians in 1983 is a case in point (Welch, Jr., 1987). But hiding under the excuse of corruption to topple a legitimate government in Nigeria will seize to be a credible reason for the involvement of the military in Nigerian politics in future. This is because many of the previous military leaders in Nigeria were as corrupt, if not more corrupt than the civilian politicians they replaced. Corruption was even blamed for the first 1966 military coup in Nigeria (and that in Ghana too). However, the post-electoral crisis in the Western region and the fear of northern domination of the affairs of Nigeria were other reasons (Wallerstein, March 14, 1966; & Kilson, Jan. 31, 1966).

Corruption causes a reduction in quality of goods and services available to the public, as some companies could cut corners to increase profit margins. Corruption effects investment, economic growth, and govern-ment expenditure choices; it also reduces private investment (Mauro 1997). Bribery and corruption, the culture of late payment, delays or refusal of payment for services already done, are according to the Lord Bishop of Guilford, David Peck, scaring away British investors from Nigeria. He notes that those who fail to pay companies for services done seem to forget that the life blood of any company is its cash flow. And rightly points out that the price of corruption is poverty (Daily Trust, July 9, 2002). Because of the widespread of "petty" and "grand" the international business community regard the whole of Africa as a "sinkhole that swallows their money with little or no return" (Callaghy 1994). With the recent changes in the political economy of East Europe, the attention of the business world has been turned to this area where they may reap quicker results from their investments.

One African diplomat could not say it any better: "Eastern Europe is [now] the most sexy beautiful girl, and we [Africa] are an old tattered lady. People are tired of Africa. So many countries, so many wars" (Newsweek Education Program - Fall/1994, 'conflict in Africa'). As we have seen, what is happening in Africa is a blueprint of the problem facing Nigeria. The nations "unworkable economic policies, blatant corruption" in fact, the "fossilized system" of government has brought almost everything to a halt (Adams, May/June, 1995). Thus, corruption discourages honest effort and valuable economic activities; and it breeds inefficiency and nepotism. Corruption leads to possible information distortion as it cooks the books; and a high level of corruption can make public policies ineffective (Sen 1999, p.135; also see Reuters Jessica Hall on WorldCom, June 27, 2002). Above all, corruption can tarnish the image of a country. As we have seen, Nigeria suffers more than most nations from an appalling international image created by its inability to deal with corruption and bribery.

According to one who has lived in Nigeria, becoming corrupt in Nigeria is almost unavoidable, as morality is relaxed, because to survive people have to make money. The 1996 Study of Corruption by Transparency International and Goettingen University ranked Nigeria as the most corrupt nation, among 54 nations listed in the study, with Pakistan as the second highest (Moore 1997, p.4). As this was not too bad enough, the 1998 Transparency International corruption perception index (CPI) of 85 countries, Nigeria was 81 out of the 85 countries pooled (Table A); (Lipset & Lenz 2000; p.113). And in the 2001 corruption perception index (CPI), the image of Nigeria slipped further down south (ranked 90, out of 91 countries pooled), with second position as most corrupt nation, with Bangladesh coming first (Table B).

(Table A)

Corruption Perception Index (The top 10 and bottom 10 countries)

 

1998			2001			2003
Country	Rank		Country	Rank		Country	Rank
Denmark	1		Finland	1		Finland	1
Finland	2		Denmark	2		Iceland	2
Sweden	3		New Zealand	3		Denmark	3
New Zealand	4		Iceland	4		New Zealand	4
Iceland	5		Singapore	5		Singapore	5
Canada	6		Sweden	6		Sweden	6
Singapore	7		Canada	7		Netherlands	7
The Netherlands	8		The Netherlands	8		Australia	8
Norway	9		Luxembourg	9		Norway	9
Switzerland	10		Norway	10		Switzerland	10
Vietnam	75		Russia			Angola	124
Russia	76		Tanzania	82		Azerbaijan
Ecuador	77		Ukraine	83		Cameroon
Venezuela	78		Azerbaijan	84		Georgia
Colombia	79		Bolivia			Tajikistan
Indonesia	80		Cameroon			Myanmar
Nigeria	81		Kenya			Paraguay
Tanzania	82		Indonesia	88		Haiti	131
Honduras	83		Uganda			Nigeria	132
Paraguay	84		Nigeria	90		Bangladesh	133
Cameroon	85		Bangladesh	91

  Source (s):

• The Transparency International Corruption Index, 1998; and
• Lipset, Seymour & Salman Lenz, "Corruption, Culture, and Markets," (2000),In Culture Matters, Harrission & Huntington (eds.), 2000, p.113
• The Transparency International Corruption Index, 2001; pp. 234-236

Corruption upsets ethnic balance, and exacerbates problems of national integration in developing countries. For instance, if a corrupt but popular ethnic leader is replaced in his or her position, it 'may upset ethnic arithmetic' and the cohorts may revolt. The social brawl that followed the Moshood Abiola's 1993 elections rebuff is one of the many cases dotting Nigeria's political landscape. Southerners (mainly Yorubas from his ethnic Southwest) rioted, as they felt they were mistreated by the northern oligarchy. Similarly, some politicians from the northern part of the country seem to have forgotten the atrocities committed by Generals Buhari, Babangida, and Abubakar during their regime (they even refused to testify before the Oputa Panel), because they are their home boys. Any attempt to bring them to justice would lead their cronies to ethnic and social conflicts and possible loss of innocent lives.

Corruption is also destructive of governmental structures and capacity. TheNEWS, in its July 11, 1999 issue The Face of a Liar, broke the news of forgery and perjury committed by the former Speaker of the House of Representatives, Alhaji Ibrahim Salisu Buhari. Through corrupt means, Alhaji Ibrahim Salisu Buhari amassed wealth (he made millions working for NEPA), and bribed his way to the fourth highest position in the land. This scandal dominated the political agenda of Nigeria for some time. It is a national shame that a crook was in-charge of the House of Representatives the body that makes the laws of the land. What type of laws could he have made for Nigeria? President Olusegun Obasanjo disappointed the world by granting Alhaji Salisu Buhari a state pardon, despite his apparent campaign to transform Nigeria into a corruption-free society (Obasanjo's Inaugural Speech, May 29, 1999). The Buharigate, as the scandal was later called, nearly destroyed Nigerias democracy-experiment.

Corruption can destroy the legitimacy of a government. The Shehu Shagari administration was written off as inept because of the magnitude of corruption in the administration, and its lack of policy direction (Suberu 1994). Corruption may alienate modern-oriented civil servants and may cause them to reduce or withdraw their service or to leave the country.  Corruption is one the reasons for the 'brain drain' phenomenon in Nigeria (talented professionals leaving the country in search of employment some where else). In Nigeria, you can hardly enter an office and get your 'file signed except you drop' some money. Even the security personnel at the door of every office will ask for (bribe) tips? In other words, corruption leads to slow moving files that get through the desk of officers once the interested parties have compromised themselves. It also leads to missing files that [would] resurface immediately the desk officer is settled, unnecessary bureaucracy and delays until fees are paid (Oloja; The Guardian, April 21, 2002).

By dolling out money to politicians, General Abacha got many of the nation's political class to commit political suicide in 1998.  Many of them lined up en masse to proclaim him as a 'dynamic leader' and the only person qualified to lead Nigeria. Similarly, recently many politicians from the ruling Peoples Democratic Party (PDP) recently trooped to President Obasanjos Ota Farm in Ogun State to beg him to run for a second term. Even General Abubakar's visible timidity to address the issue of corruption in Nigeria was alarming and discouraging, as he retained the military officers of accused of looting the national treasury with General Abacha.

However, corrupt military is not peculiar to Nigeria. Juan D. Peron of Argentina and Batista of Cuba, among others, were also known to have deposited their ill accumulated wealth in Swiss banks and other foreign financial institutions, instead of investing the loots in their local economy (Sklar 1965; Lewis, May/June, 1994; Adams 1995). And with brute force Augusto Pinochet of Chile bastardized the nations economy, and killed many of the people who opposed his regime. During his Inaugural Speech on May 29, 1999, Olusegun Obasanjo vowed to tackle the menace of corruption in Nigeria. He said: "Corruption will be tackled head-on. No society can achieve its full potential if it allows corruption to become the full-blown cancer it has in Nigeria." And he vowed that "there will be no sacred cows in his process to stamp out corruption in the society (Inaugural Speech, May 29, 1999). But it is self evident that the corrupt big cows are still walking freely on the streets of Nigeria.

In summary, corruption diverts scarce public resources into private pockets, literally undermines effective governance, endangers democracy and erodes the social and moral fabric of nations. As it has been noted the lust for power and corruption (and dash) as gift known in Nigeria, is not strictly a Nigerian problem. Corruption is a global phenomenon and manifest in both Petty and Grand forms. Will it be possible for Nigeria to effectively tame the scourge of corruption in the society?

For Effective Control of Corruption

Some human ailments could require many doses of medicines to be treated. Similarly, the menace of corruption, which has eaten deep into the fabric of Nigeria, would require all the necessary medicines to effectively control it. In other words, no single and simple remedies will do it; and the problem cannot be solved overnight, because, as we have noted, corruption has been ingrained into the fabric of the society. Nigeria has, in theory, the solutions in the book to tackle corruption; but like other issues (poverty, etc) bedeviling the nation, implementations of the laws are the Achilles heel (a vulnerable point) of the society (The Guardian, July 10, 2002). Similarly, Robert A. Dahl notes that the Achilles hell of the small state is its military weakness in the face of a large state (1998, p.112).

One of the authors whose work we reviewed noted (and rightly, we might add), that one of the reasons why the measures against corruption have not been fruitful in Nigeria is that they have operated at a level [of mere] symbolism (Osoba 1996). Yes, corruption has defied all measures adopted to combat it in Nigeria, apparently, because those wagging the corruption-wars are themselves corrupt. In the name of turning Nigeria into a corruption-free society, the nation has experimented with many policies. It has tried the judicial commissions of enquiry, the Code of Conduct Bureau. It had wrestled with the Public Complaints Commission to no avail. Also it fiddled with the Mass Mobilization for Social Justice and Economic Recovery (MAMSER), and the National Open Apprenticeship (NOA), but corruption instead blossomed. Then, General Buhari clobbered Nigerians with his horsewhip branded the War Against Indiscipline Council (WAIC), without success. Now the current civilian administration of President Olusegun Obasanjo has instituted an Independent Corrupt Practices Commission (ICPC), which seems to have power only over the corrupt poor. 

Any society faced with the challenges of corruption will continue to find ways to break the circle. This author has argued elsewhere that Nigeria cannot effectively control the menace of corruption in the nation by merely instituting probe panels. It was suggested that the to tame the surge of corruption in Nigeria, the general population should be re-orientated to a better value system. This is because Nigerians have for long been living on the survival of the fittest and grab-whatever-comes-your-way mentality (Dike, October 6, 1999; Dike, February 5, 2002). The re-orientation of the youth in Nigeria to a good value system could help in the war against corruption. The World Values Surveys of 1990-1993 has a lot of attitudes and values information, which notes a relationship between values and corruption (World Values Study Group, 1994). Preaching the gospel and practice of virtue is the ultimate solution to behavioral change and reduction in corruption. Their productivity could increase, which would mean enough goods and services, prosperity and economic growth, and which would in turn allow the citizens the freedoms to live a meaningful life.

However, while the Justice Oputa Panel and the Justice Akambi commission were cruising the cities interrogating the poor corrupt individuals involved in petty thefts, the politicians and the known corrupt ex-military Generals have been busy politicking around the nation with money stuffed in their Ghana-must go (bag) unperturbed.   But to win the apparent war on corruption in Nigeria, the Obasanjos slogan of there must be no sacred cows should not be a mere political rhetoric. It should be put into practice by prosecuting all the known corrupt political heavy weights in the society, as they contribute in making the nations inchoate laws inoperable. As Kanu Agabi, the Attorney General and Minister of Justice noted at a meeting with state commissioners of police,

Some of our leaders are doing everything they can to make the work of the police impossible. Big men are the greatest criminals and except you go after the big criminals and bring them to book, the rate of crime may not reduce. [But] If you bring three or four of these big men to book, the rate of criminal activities would reduce. He declared, Arrest ministers, arrest [the] big people and others would fear (The Vanguard, 30^th March 2002).

But why has President Obasanjo made a deal with the Abacha family if his chief law enforcement officer has such a wonderful idea? He should have used the opportunity afforded by the Abacha saga to show the world that he is serious with his avowed war on corruption. The agreement made by civilian administration with the Abacha family would allow them to keep $100 million (of the money stolen by the late General), so that they could return about $1 billion of the loot to the federal government (Dan-Ali, BBC News, May 20, 2002). As many critics have noted, this deal would encourage the many economic opportunists (the die-hards hanging on the fence waiting) to grab whatever government funds they can lay hands on, since the federal government would allow them to keep a part of the money, if and when, they are apprehended. 

To win the war on corruption, adherence to ethical standards in decision-making must be the foundation of the nations policies. Without ethics (set of moral principles or values or principles of conducts governing an individual or a group) - Websters New Collegiate Dictionary, 1980, p.389, in the conduct of the affairs of the nation (public and business), the apparent wars on corruption in Nigeria will not be successful. In other words, without ethics, any money budgeted toward fighting corruption in Nigeria is a thing cast to the wild cat. Nigeria has to make laws and implement them to the letters. As Aristotle insists, the aim of ethical philosophy is practical - to make us better men - (The Philosophy of Aristotle, Bambrough (ed.), p.280; ThisDay, May 26, 2002). And to win the war on corruption Nigeria has to fortify the institutional checks and balances among the countrys major social forces and the separation of powers within the government (Dahl 1998). The nation has to make sure that those entrusted to execute the war on corruption are men and women of virtue - those who recognize and always do what is right.  For MacIntyre, virtue is an acquired human quality, the possession and exercise of which enables us to achieve those goods which are internal to practices, and the lack of which effectively prevents us from achieving any of such goods. Virtuous leaders [in government and business] are persons of honesty, integrity and trust (MacIntyre 1981; Liebig 1990; Frankena 1963; Dike 2001, pp.103-104).

Armed with ethics and virtue, the nation should then set out to reduce personal gains to corrupt behavior with tough penalties on the culprits. Making tough rules with vigorous enforcement can deter corrupt behavior. The nation should not grant too much discretionary powers to officers who are in position to grant favor to others (businessmen in particular), such as officer who issue out licenses and passports (These officers often create artificial scarcity to attract bribes from the desperate public). There is the temptation to be corrupt when the officials who have a lot of power are themselves poor (Sen 2000, pp. 275-276).

One of the reasons for the upsurge of corrupt activities in Nigeria is that many Nigerians have not had the chance to live under the rule law, as the society has since independence from Britain in 1960, been under the claws of the military. As Edward De Bono notes in his book, Future Positive, Law and order are a basic part of the fabric of society. Society needs to give a high priority to this aspect of life, because poor quality here downgrades everything else" (1990). The Nigerian police should be upgraded in status, and be well trained, well equipped and well paid (and on time too). The police should become an elite profession, which would be open only to those with good moral character. If the police and other security agents (for instance, customs and the military), will learn and understand their limits (not to harass and kill innocent citizens) and follow the rules, things might improve in Nigeria.

This is not to suggest that upper level officers could not be corrupt. Top bureaucrats with excessive powers could abuse them. Cases abound, but the cases of Generals Ibrahim Babangida and Sani Abacha are well documented. The effects of power on those who wield it are well stated in 1887 by Lord Acton, who noted that Power tends to corrupt; absolute power corrupts absolutely (Dahl 1998, p. 73). Before this time a British statesman, William Pitt, observed in a speech that Unlimited power, is apt to corrupt the minds of those who possess it (Ibid. p. 73).

The mass media has a crucial role to play in the campaign to educate the people of their rights as citizens, and in exposing the rogues. Nothing chills nonsense more than exposure to thin air. The nation should erect permanent structures in the society to constantly tackle corruption, instead of setting up ad-hoc corruption-panels here and there. The citizens have a role to play in the war against corruption: they should always try to resist the temptation to offer bribes to corrupt government officials, as it takes two to tango.

To deal with corruption in ancient, many bureaucrats were paid a corruption-preventing allowance yang lien- as incentive to remain clean and law-abiding (Alatas, 1980; & Klitgaard, 1988). To Amartya Sen a payment system of this kind can help reduce corruption through what he calls its income effect, as the officer who gets this payment may be less in need of making a quick buck.  This type of payment will also have what he calls substitution effect. The officer receiving the payment would know that corrupt behavior may involve serious loss of a high-salary employment if things were to go bad (that is, if he or she is caught with his or her hand in the cookie jar) (Sen 2000). In some cases, how people behave in a society depends on how they see and perceive others behave. If the prevailing behavior in a country is bad, others could imitate the behavior. However, the lousy argument would be that others do the same. This was one of the cited reasons for corrupt behavior when the Italian parliament investigated the linkage between corruption and the Mafia in 1993. Thus, corrupt behavior encourages other corrupt behavior, moreover when the culprits go unpunished. But respect for rules, honest and upright behavior are certainly bulwark against corruption in many societies (Sen, 2000, p.277).

Sadly, corruption is now a high-profile issue in Nigeria; and those in political power are the main culprits.

News of corruption always oozes out from the National Assembly, but nobody has been prosecuted. And many of them often engage in frivolous oversea trips (with hordes of cronies and praise-singers) while civil servants in their states go for months without getting paid their salary (the President is also guilty of this). And some are known to have acquired landed properties in the United States and Britain. 

However, an Independent Corrupt Practices Commission (ICPC), presided over by Justice Mustapha Akanbi, has been instituted in Nigeria to fish out those whose hands were tainted while in office in the society. Members of the Commission include, Alhaji Zubairu Mohammed, Hairat Ade Balogun, Pro. Sayeed Hamzat Malik, Alhaji Muhammed Mahmud Maishanu, Alphonso Olufunmilayo Fadaka, Mrs. Salome Audu Jakanda, Rev. Fr. Moses Orshio Adasu, Prof. (Mrs.) Uche Modum, Dr. Asikpo Essien-Ibok, Ms. Adeline Elemechi Uwanaka, Gabriel Taimu Aduda, with Peter Eyiamenkue Odili as secretary (Thisday News, June 24, 2002). Now the commission has its bait in the water, but so far it has not landed any big fish. Or, has it caught any fish at all? How far this commission can go to sanitize the already corrupt society remains to be seen.

It is appropriate to emphasis the importance of good and enforceable policies toward controlling corrupt behavior. And policies should be reviewed periodically to close any loophole and to catch-up with events in the society. Toward this, Robert S. McNamara, former presidents of the World Bank and Ford Motor Corporation, has argued that for any campaign against corruption to be successful in Sub-Saharan Africa, certain characteristics should be common in the plans against corruption. His suggestions on how to control corruption in the region include to:

1)     Require direct, clear and forceful support of the highest political authority: the president or prime minister;

2)      Introduce transparency and accountability in government functions, particularly in all financial transactions;

3)      Encourage a free press and electronic media to forcefully report to the public on corrupt practices in the society;

4)      Organize civil society to address the problems of corruption brought to light by the process of transparency and the activity of the media;

5)      Introduce into government watch-dog agencies - anti-corruption bureaus; inspectors general; auditors general and ombudsmen [government official appointed to receive and investigate complaints made by individuals against abuses or capricious acts of public officials, etc] - which will identify corruption practices and bring them to public attention;

6)      Minimize and simplify government regulations, particularly those involving the issuance of licenses, permits and preferential positions, thereby restricting opportunities for rent seeking by corrupt means.

7)      Insert anti-bribery clauses into all major procurement contracts and with the assistance of both international financial institutions and bilateral aid agencies insist that international corporations, bidding on African procurement contracts, accept such clauses and the penalties associated with their violation.

8)      Introduce similar anti-bribery clauses into contracts relating to privatization of government enterprises, and the development of natural resources.

9)      Ensure that enforcement is predictable and forceful; and

10)  To criminalize the acts of bribery; prohibit the deduction of bribes for tax purposes; and erect barriers to transfer to western financial institutions of financial gains derived from corrupt practices (United States Information Agency, Nov 17, 1997).

Other steps authorities could take to control corruption include:

11)  Declaration of Assets: The state should require that all high-level Nigerian officials (Presidents, Ministers, Legislative officers, Central bank governors, Police and Customs Chiefs, Military Generals), sign a statement granting permission to banks (both local and foreign), real estate or investment house to disclose any personal assets they may hold. Breaking this veil of secrecy, it has been argued, is crucial if assets declarations are to be verified and accountability enforced (Diamond, 1992);

12)  Withholding of Aid: International donors (the IMF and World Bank) can be helpful by cutting off completely distribution of assistance to any country marked for high-level corruption;

13)  Scrutiny for sources of income: As was pointed out above, scrutinizing individual depositors of huge sum of money, by financial institutions for sources, would go along way to curbing looting of national treasury by civil servants.

It has been reported that the Commonwealth of Nations have started work on a program that would make it difficult, if not impossible, for banks and other financial institutions to accept monies looted from the national treasury of a Commonwealth member nations. The former scribe of the Commonwealth of Nations, Chief Emeka Anyaoku, disclosed this at Obosi (Anambra State) in January 1999 (The Guardian, Jan. 2, 1999). The Organization of African Unity (OAU), which recently changed its name to African Union (AU), should emulate other international organizations to work toward stamping out corrupt and dictatorship from its midst. Merely changing its name without a change in ideology is just like putting an old wine into a new calabash.

Conclusion

Many laws are already on the book to fight corruption in Nigeria (including those crafted by the international organizations). But what is important now, as Peter Eigen, chairman of the watchdog group, Transparency International has noted, is the political will to fight corruption at home countries. And as Robert McNamara remarked at the end of the Second Global Forum on Fighting Corruption and Safeguarding Integrity at The Hague May 31, 2001, Every country has to determine it own priorities on the war against corruption. But each society should focus on concrete actions that can yield measurable results, and publicly report whether results are being achieved (see Odessey, Washington File Staff Writer, May 31, 2001).

Above all, Nigeria cannot be seen as secure and free until the people's human rights are respected and protected by the government. As Mikhail Gorbachev points out, "the world cannot be considered secure if human rights are being violated." And more importantly, the world cannot be considered secure if a many people lack the elementary condition for life worthy of man. Similarly, Nigeria cannot be considered secure if millions of people go hungry, do not have a roof over their heads and to be jobless and sick indefinitely, with the most basic human right, the right to life is disregarded" (Morrison 1988). Through it all, to tame corruption, Nigeria has to use words as well as actions a multifaceted approach. However, has Nigeria been monitoring the effectiveness of her many (but not serious) anti-corruption strategies? Finally, good governance, transparency, accountability and the rule of law are the keys to tackling corruption in the society, as corrupt leaders cannot wage an effective war against corruption.

Victor E. Dike, who lives in Sacramento, California, is the author of Democracy and Political Life in Nigeria [Zaria, Nigeria: Ahmadu Bello Univeristy Press] 2001, and The Osu Caste System in Igboland: A Challenge for Nigerian Democracy [Kearney, NE: Morris Publishing] March 2002.

His new book - Nigeria and the Politics of Unreason: A Study of the Obasanjo Regime , is published by Adonis & Abbey Publishers, London (Nov 20, 2003).

 

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Causes And Consequences Of Corruption: The Nigerian Experience

Posted by olasope01 in NEWS, OPINION, POLITICS, PRESS STATEMENT on July 23, 2013 10:02 am / 1 comment

By Kayode Oladele

One of the reasons why we are meeting here this evening is to exchange ideas on our experiences, challenges, progress so far made in our fight against corruption and discuss current developments in corruption prevention in relation to institutional techniques, investigation, enforcement, practice and procedure and to recommend appropriate strategies for combating corruption. The international community has finally appreciated and come to terms with the reality of the “cancer of corruption” and its ubiquitous nature; hence, we are all in agreement that being a persistent feature of human existence worldwide, its solution lies in the collective action of key global institutions with organized international joint efforts against corruption. These efforts have produced a lot of anti-corruption measures including bi-lateral and multilateral agreements, enactment of national anti-corruption laws such as the Nigeria’s Economic and Financial Crimes Commission Act, 2004, the designing of international framework and strategies for the prevention of corruption and the making of an all important United Nations Convention Against Corruption which has now become the reference point for anti-corruption fight all over the world.

Nonetheless, the need to study corruption and anti-corruption has continued to generate passionate commentaries and academic interests. While it is obvious that this interest has made the subject matter better understood to an extent, the hundreds of information being incorporated into its study, research data and the diversity of some of the findings have sometimes established some levels of complications too. Apart from the fact that some have attempted to mischaracterize corruption as a tool for development under such labels as “grease the wheels” arguments or the “efficiency grease”, the question still persists, for instance, on how corruption should be situated, whether within the context of the “moralists,” “developmentalists,” or “functionalists” definitions.  More directly, should the definition be public-office centred, market-centred or public-interest centred?

Meanwhile, the definition of corruption becomes more complicated when viewed in terms of such classification as supportive corruption, transactional corruption, extortive corruption, defensive corruption, investive corruption, personal and institutional corruption, traditional and modern corruption, local, national or international corruption, or representational corruption, grand and petty corruption. Or simply put, should corruption be viewed as corruption and nothing more? Many questions continue to arise in our experience and engagement of corruption and corrupt practices.

To this extent and with a focus on the activities of the Economic and Financial Crimes Commission (EFCC) in Nigeria, this presentation engages two questions: What are the causes and consequences of corruption in Nigeria and how has EFCC responded to the scourge? To engage these questions, the rest of this paper is divided into four parts that involve the causes of corruption in Nigeria, its consequences, the role of the EFCC and a conclusion laced with a recommendation that focus on the need for a Special Anti-corruption Court.

What are the Causes of Corruption in Nigeria?

The causes of corruption are multiple and have been discussed by scholars under numerous headings but I will briefly discuss some of the major causes that we have identified as investigators as some of the common causes of corruption in a political economy.

 

First, we have identified weak institutions as a major cause of corruption. Corruption has a high propensity to thrive when legal and political institutions are weak and government policies generate economic rents. In most climes, there are so many incentives in the public sector, particular administrative and legal institutions that leave public officials with wide unrestricted authority and powers to create avenues for unjust enrichment or use the discretionary powers at their disposal to manipulate the system.  According to the World Bank Report; “the normal motivation of public sector employees to work productively may be undermined by many factors, including low and declining civil service salaries and promotion unconnected to performance. Dysfunctional government budgets, inadequate supplies and equipment, delays in the release of budget funds (including pay), and a loss of organizational purpose also may demoralize staff. The motivation to remain honest may be further weakened if senior officials and political leaders use public office for private gain or if those who resist corruption lack protection. Or the public service may have long been dominated by patron-client relationships, in which the sharing of bribes and favours has become entrenched. In some countries pay levels may always have been low, with the informal understanding that staff will find their own ways to supplement inadequate pay. Sometimes these conditions are exacerbated by closed political systems dominated by narrow vested interests and by international sources of corruption associated with major projects or equipment purchases”.

 

Closely related to the issue of weak institutions is the role of formal rules and the criminal justice system. There is hardly any country where corruption is legalized; to the contrary, there are several formal rules and laws prohibiting corruption and corrupt practices with appropriate sanctions and punishments. In addition to organic laws, several public institutions such as the Police, Customs and Immigration, Road Safety Corps, Fire Marshals, the Armed Forces ,  internal revenue agents, and other institutions including the judiciary have comprehensive codes of conduct to regulate their behaviours which also prohibit the receiving or accepting of bribes, gifts, gratifications etc.  However, in a political economy that is laced with corruption, such formal rules are usually supplanted by informal rules or customs that allow corruption to flourish. For instance, the law may criminalize the giving and taking of bribes but in practice, one can hardly get anything done without gratification or in Nigerian parlance, “settling” someone. In Nigeria until the establishment of the EFCC, the laws were hardly enforced and the informal rules prevailed. The EFCC was thus established to strengthen the institutions and to shift emphasis back to the recognition and enforcement of formal rules. In addition to the formation of the EFCC, the government of Nigeria, recognizing the need to have a strong formal rules, had also enacted various other laws such as The Money Laundering Act, the Advance Free Fraud Related Offences Act and the Failed Banks (Recovery of Debts) and Financial Malpractices in Banks Act and several other appropriate legal frameworks to control corruption and strengthen the legal and economic institutions including the criminal justice administration. The Act also made the EFCC the designated Financial Intelligence Unit (FIU) in Nigeria, which is charged with the responsibility of co-coordinating the various institutions involved in the fight against money laundering and enforcement of all laws dealing with economic and financial crimes in Nigeria.  Essentially however, the incentive to engage in corruption and corrupt practice is stronger where the probability of being discovered or prosecuted is remote or non-existent.

Another cause of corruption is public perception. Corruption is supported when some/few societal culture promotes corruption. Why should a convicted corrupt individual be offered a chieftaincy title by traditional rulers? Why do governors, some of whom have been fingered in corruption be given awards or be elected into the senate? There are also other instances where religious institutions have ordained corrupt public officials and sometimes organized thanksgiving services for corrupt ex-convicts who are just being release from prisons.

The nature of the economy is also a crucial factor. It has been argued that rent-seeking or rent-based systems tend to promote corruption. If this view holds, then, because the Nigerian economy is based on rents from crude oil and gas, it follows that there would be a number of “leakages” that would allow for the easy flow of cash and favours, sometimes in illegal ways.  Until recently in Nigeria, public officers would deliberately delay the implementation of national budget with the hope that at the end of the financial year, any unspent budget would become largesse to be shared by the senior civil servants. This is why it is often said by experts that for corruption in public sector to flourish, public officials must possess “the authority to design or administer regulations and policies in a discretionary manner”. However, with the passage of new government policies which have made it mandatory for any unspent budget heads at the end of the financial year to be returned to the federation account and the passage of the Freedom of Information Act which is aimed at promoting transparency and accountability in government finance among others, this practice has also become a thing of the past in Nigeria.

Other identified causes of corruption in Nigeria include poverty, poor remuneration or incentive system.

Consequences of Corruption in Nigeria

The consequences of corruption are universal even if there could be variations in the level of state and non-state responses to these consequences. Simply put: massive corruption in the Nigeria has reduced the amount of money needed for development just as it does in any other political economy.

First, corruption promotes poverty. A simple example could be made with the corruption in the management of pension funds in Nigeria. The theft of pensions means that retired Nigerians would not have access to their pensions as at when due. This means that those that have dependants to care for would be deprived of the needed funds. Some pensioners eventually died because of the rising expectations that often end in frustrations sometimes occasioned by standing for hours on long queues. What happens to the dependants of a pensioner when he or she is deprived of his pensions? Will such dependants be able to attend qualitative schools or will they be forced out of schools to fend for themselves? If education remains one of the main routes leading to a good life and national development, without education, what would be the future of these dependants and the country?

Another consequence of corruption is that it creates the condition for political instability. This is because unrestricted corruption makes the state an unlimited allocator of wealth to individuals and groups. This character of the state makes it possible for the politics of do-or-die to take root, with politicians struggling to out-compete one another sometimes in violent manner. It must be recalled that the various military regimes that took over power from democratically elected representatives of the people had always justified their intervention on the ground of grand corruption and looting of state treasury by political state actors

Third, corruption contributes to the blanket criminalisation of Nigerians, especially the youths.  With its capacity to generate poverty and instability, the youth have been systematically hijacked for selfish ends by unscrupulous politicians and ideologues. Some of those that were not ‘hijacked’ have found interest in advanced fee fraud popularly referred to as Yahoo-yahoo or 419 in local parlance. While corruption cannot, and should not, be the singular cause of this systematic criminalisation, it contributes to it.

Four, corruption promotes the existence of underground/illegal economy. The possibility of bribes infiltrating the security systems have made it easy for underground economies in counterfeit, adulterated and substandard products, especially drugs. Though these underground economies worth billions of dollars, the government do not benefit from taxes nor are the people benefiting from the dangerous effects of adulterated drugs.

Five, corruption also has other social costs apart from poverty.  As rightly noted by Myint (2000: 50), in “any society, there are laws and regulations to serve social objectives and to protect the public interest, such as building codes, environmental controls, traffic laws and prudential banking regulations. Violating these laws for economic gain through corrupt means can cause serious social harm.” The frequent use of substandard materials and violation of building regulations have led to several buildings collapsing and killing innocent occupiers have become a recurrent decimal in Nigeria while large scale oil spills with catastrophic effects have continued in some part of the country.

Lastly, and consequent upon the aforementioned is that corruption is antidevelopment to the extent that it reduces the amount of funds available to be used for developmental purposes. Monies that should have been used to better education, health, infrastructure and other items needed to encourage a good life of Nigerians are stolen by a microscopic few. But how has the EFCC responded? What has been done so far?

The EFCC and Anti-corruption

In discussing the responses of the EFCC to corruption in Nigeria, it is pertinent to briefly have a grasp of what the agency represents and its origin. The emergence of the country’s Fourth Republic was marked with the election of retired General Olusegun Obasanjo, a former military ruler between 1976 and 1979 as Nigeria’s President on May 29 1999. Prior to that time, it had been estimated that about US$400 billion was stolen between 1960 and 1999. Based on his conviction that corruption remains a major challenge of the country, two distinct anti-corruption agencies were created: the EFCC and the Independent Corrupt Practices and Other Related Offences Commission (ICPC).

The EFCC was created and empowered to prevent, investigate and prosecute economic and financial crimes as entailed in the Banks and Financial Institutions Act 1991, Miscellaneous Offences Act, the Money Laundering Act 1995, the Failed Banks (Recovery of Debts) and Financial Malpractices in Banks Act 1994, the Advance Fee Fraud and Other Fraud Related Offences Act 1995, the Economic and Financial Crimes Commission Act (2004), and the Money Laundering and (Prohibition) Act 2004.

A lot has changed in Nigeria since the establishment of the Commission ten years ago. Increasingly, accountability is gaining centre stage in our governance system as senior government officials are now being called upon to give account of public resources under their watch.  Several public officers who are found wanting have been indicted and many are today facing criminal trials on allegation of corruption and breach of trust.  The same goes for the private sector; chief executives of Banks have been investigated, prosecuted and convicted with assets worth billions of Naira forfeited to the government and other victims of crime.

In 2012 for instance, a total of 7,737 petitions were received and processed by the Commission. This represents 6% increase over petitions received in the preceding year. Out of these, 2,606 were assigned for investigation, 2,385 were referred to other security agencies for necessary action and 2,746 were rejected for lack of merit. A total of 97 criminal convictions bordering on money laundering, illegal oil bunkering, pipeline vandalism, bank fraud, forgery and criminal breach of trust, etc. were also secured.

 

In the same way, a combined total asset worth N 9,755,924,635.69 was also recovered and forfeited to various victims of crimes which included government agencies and departments, private individuals, institutions and organisations. This is besides the recovery of a total of the over $170million between 2010 and 2011 made through settlements (jointly with the Honourable Attorney General of the Federation and Minister of Justice) from foreign multinationals involved in the Halliburton bribery scandal and custom duty violation, etc.

In addition, in the first quarter of 2013, the Commission recorded 33 convictions. Five of the convictions were on illegal transportation of foreign currency contrary to the Money Laundering (Prohibition) Act. The sum of $144,214.5 and N2, 705,000.00 were ordered forfeited to the Federal Government of Nigeria treasury. The remaining 28 were convictions for offences of obtaining money by false pretence, forgery, illegal dealing on petroleum products etc.  Similarly within the same period, the Commission filed a total of 108 criminal charges. The Commission has also secured five interim forfeiture Orders and 3 freezing Orders.

Moreover, within the same period, the Commission assisted the Metropolitan Police in the investigation, prosecution, conviction and sentencing of Mr. James Ibori, a former governor of Delta state by the Crown Court at Southwark. London on February 27, 2012, to 13 years imprison for money laundering and fraud. The same goes for the case involving the former Managing Director of Intercontinental Bank PLC, Mr. Ereastus Akingbola before the Royal Commercial Court in London on 31 July 2012 in which the Court ordered the forfeiture of a total sum of approximately N165billion in favour of Access Bank plc (formerly Intercontinental Bank plc). The EFCC played a vital role in the prosecution of the case providing the UK authorities with critical assistance during the course of the investigation. The EFCC’s partnership with the UK authorities in these cases represents best practices in international cooperation as provided by the United Nations Convention against Corruption (UNCAC).

The criminal prosecution of top Politically Exposed Person (PEPs) also continues to receive priority attention of the Commission. This is consistent with its top – down approach to combating corruption. To this effect, five former state governors and a former speaker of House of Representatives including a cabinet Minister were accordingly charged to court between 2011 and 2012 for corrupt practices bordering on contract fraud and/or abuse of office. The trials of these cases are pending and will be concluded soon.

Likewise, in what perhaps can be described as one of the biggest public sector frauds in Nigerian history, some dishonest marketers of petroleum products swindled the Federal government of over N1.71 trillion under the petroleum Support Fund (PSE) Scheme. The sheer magnitude of this monumental fraud ignited and fuelled national protests led by labour unions and civil society organization in January 2012 against the federal government’s proposal to completely remove the fuel subsidy scheme. Even though, further investigation continues, the EFCC has so far investigated and arraigned 13 companies including their management staff and directors in court with a combined sum of N12.4 billion involved. Of this amount, the Commission has so far recovered over N3 billion.

With the efforts of the Commission and its partners, Nigeria was delisted from the infamous list of non cooperative nations in the fight against corruption and money laundering by the Financial Action Task Force (FATF), the organization responsible for combating money laundering and financing of terrorism.

However, while the EFCC does not have all the powers to eliminate all the conditions that cause corruption, it has been involved in activities that would help eliminate some of the conditions for causing corruption. Apart from its declared goal of arresting and prosecuting corrupt individuals, the current leadership of the Commission aims to expand the fight against corruption beyond the EFCC to what can be described as the “private sphere,” though with normal interface with the public sphere.

Three such areas are worth mentioning. First are the Commission efforts at public enlightenment of youths and young adults. Considering that one of the focal principles of the current leadership of the EFCC is that the fight against corruption can only be won when the society becomes a partner, the Commission has become active in schools to encourage youths to shun corrupt activities.  Second is a periodic engagement with the media with the aim of publicising some of the achievements of the EFCC and its challenges. The Commission, with the help of its Directorate for Media and Public Affairs, is currently in the process of fine-tuning a system that would encourage a continuous reportage of corruption and its manifestations in the Nigerian Press. A good number of journalists have been key to the fight against corruption and have been agents of anti-corruption beyond the rituals of reporting the activities of the Commission alone. Third is its partnership with other key actors in society such the bureaucracy, religious institutions and other private organisations.

At this juncture however, I would like to use this opportunity to discuss a fallacy that has continued to be a feature of the critique of the EFCC by some national and a few international actors in the anti-corruption struggles. It is sometimes assumed that the success of the EFCC should be located only in terms of the number of individuals serving jail terms. This is true and logical but it assumes that the EFCC is the only agency that would determine the incarceration of corrupt individuals. For instance, in spite of the fact that the EFCC did all in its powers to prosecute a former governor of Delta State in Nigeria, Mr. James Ibori in a Nigerian Court, the Commission’s  efforts were  frustrated by the inherent weakness in the Nigerian criminal justice administration and the Nigerian legal system  Fortunately, the EFCC shares the victory with the London court in the prosecution and imprisonment of Mr. Ibori who is now serving jail term in UK owing to the partnership of the Commission with the UK authorities in the case within the context of the best practices espoused in international cooperation provided for by the United Nations Convention against Corruption (UNCAC). Ipso facto, even when the Commission would have preferred to jail corrupt individuals to long prison terms for their crimes against humanity, in the final analysis, it is the judiciary that has the ultimate powers to determine such punishment and conviction.

Concluding Remark: Towards Supporting EFCC’s Anti-corruption War

Anti-corruption should not be the preserve of one agency. It is a societal responsibility and it is this understanding that has propelled the new approach of the EFCC in advocating for more action by the civil society in the fight against corruption in Nigeria. While the EFCC is determined to continue to pursue its goals and objectives, it would simultaneously push the anti-corruption agenda on Nigerians through its current programmes and emerging partnership with key players, particularly the judiciary, the civil society organizations and the media. There must be informal rules to discourage corruption and the building of public awareness on the need to prevent corruption. This would mean more monitoring and evaluation function, educational function, media support and active participation of the public in the creation of anti-corruption environment.

However, the support of the judiciary is particularly important to the work of the Commission. It is also in this context that the establishment of anti-corruption Courts becomes very germane in order to expedite the trial and effective prosecution of corruption cases. Relevant laws should also be passed to limit or prohibit interlocutory appeals that tend to unduly delay the trial of substantive cases. For instance, according to Section 40 of the EFCC Act, an application for stay of proceedings in respect of any criminal matter brought by the Commission before the High Court shall not be entertained until judgment is delivered by the High Court.  Unfortunately, several Judges have refused to uphold this law but instead have continued to grant stay of proceedings of criminal cases which on many occasions have led to frustrate witnesses and speedy trial of cases.

Thanks for listening.   http://nigerianecho.com/causes-and-consequences-of-corruption-the-nigerian-experience/

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