Corruption and Its Impact on Socio-economic

Development in Nigeria

By
Abdullahi .S. Modibbo, Ph.D
Department of Political Science
Nasarawa State University, Keffi.

Abstract
Corruption is a universal problem affecting all countries of the world.
However, this problem is more endemic in third world countries,
Nigeria inclusive. In Nigeria, corruption has become institutionalise,
highly malignant and cancerous. Scholars have discovered the
problem of corruption has permeated all sectors of the society-
political, social, and socio-economic fabric of the Nigerian society.
How does this problem of corruption impacted on the socio­
economic development of the Nigeria? It has been observed that
corruption in Nigeria has affected the electoral process which lead to
bad leadership and governance; infrastructural deficit; educational
decline; societal instability, etc. Nigerian government made efforts
to stem these ugly effects of corruption by establishing anti­
corruption institutions such as ICPC and EFCC. To be able to do justice
to this paper, I wish to employ a descriptive and analytical research
method. This will involve content analysis of relevant work related to
our topic. In this work, we are using the neo-Marxist theoretical
framework to guide our analysis. Lastly, implementable
recommendations will be made.
Keywords: Corruption and Development

Introduction
Corruption is a problem that confronts all nations of the world. The
only difference is that its prevalence, gravity and persistence vary
from one country to another. The menace of corruption is
increasingly receiving local, national and international attention.
According to Lawal (2012), this development is partly due to the
following reason: (1) series of high level corruption cases in
industrialised countries, (2) an increasing awareness of the costs of
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 corruption throughout the world and (3) the political and economic
changes which many countries are undergoing.
Nigeria as a nation is bestowed with vast human and natural
resources, with oil exports accounting for about 95% of foreign
exchange income and some 80% of government income, with a
population of about 160 million (Faloore, 2010).
Nigeria as a state is faced with endemic corruption which has
become part of life of her citizens. As a result of corruption in Nigeria,
her quest for socio-economic development has remained a mirage,
despite its enormous array of resources. The Nigeria economy has
witnessed a stagnant economic growth. This ugly development has
been partly attributed to corruption and gross mismanagement of
the country's vast resources. Corruption has tremendously affected
the lives and provoked animosity amongst Nigerians. It has eaten so
deep into the fabrics of the Nigerian government, the public and
private sectors, governmental and non-governmental organisation
and has essentially become a way of life and an important source of
accumulation of private property in Nigeria.
In this work, I intend to address the subject of our topic by
starting from: conceptual clarification; causes of corruption; types of
corruption; the nature and character of corruption in Nigeria; the
challenges of corruption on socio-economic development in Nigeria;
the role of ICPC and EFCC in the fight against corruption; factors
militating against the fight against corruption in Nigeria; Theoretical
framework, lastly conclusion and recommendations will be
proffered.

Conceptual Clarification
The concept of corruption: Etymologically, the word corruption is
derived from the Latin word “rumpere” meaning “to break”. This
' connotes the breaking of normal or societal norms or practices
(lfesinachi,2003).
Scholars differ in defining corruption but the negative impact
of corruption is less contentious.
Transparency international (2006), defines corruption as
“the abuse of public office for private gain”. While the World Bank
(1997), sees corruption as “the abuse of public power for private

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gain”. According to Wye (1967), sees corruption as “behaviour which
deviates from the formal duties of a public role (elective or
appointive) because of private interest regarding (personal, close
family, private clique) wealth or status gains; or violates rule against *
the exercising of certain private regarding influence”.
Osoba cited in Jike, (2005) gives a more elaborative
definition of corruption as:
“A form of anti-social behaviour by an individual or
social group which confers unjust or fraudulent
benefits on its perpetrators and is in consistent with
the established legal norms and prescribed moral
ethos of the land is likely to subvert or diminish the
capacity of the legitimate authorities to produce
fully for the material and spiritual well-being of all
members of society in a just and equitable manner”
It is important to note, it is not easy to have a precise definition of
corruption, which meets local and international standards. The
independent and corrupt practice commission (ICPC) defines
corruption as “bribery, fraud, and other related offences (ICPC,
2008).
Bribery is often agreed as corruption. According to the
chambers 21st century dictionary defines “bribe” as a gift, usually
money, offered to someone to persuade them to do something
illegal or improper”.
Bribe occurs within the context of the giver and the receiver.
Bribe paves the way for the giver to be favoured in whatever he or
she is lookingfor regardless of the rules and procedures.
The receiver of bribe is under compulsion to deliver what the
giver has asked for, whether or not the giver merits it, even if it is
detrimental to state interest orcorporate interest.
Corruption is widely accepted as the cause of social
underdevelopment, particularly in third world country like Nigeria.

The Concept of Development

According to Todaro (1995) development is the process of
improving the quality of all human lives. Development entails
improving in individual condition of living, better infrastructure, and
general social economic development.

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Theoretical Framework
The foundation of this work is built on Marxist theory of
dialectical materialism. The main thesis of this theory is importance
of matter on determining the happenings within the social system.
This theory believes that the material condition of living of the
people tends to influence their behaviour, particularly in a society
that encourages unequal access to resources, and domination of
one class- Bourgeoisie class over the proletariat class. That in a
capitalist society, private ownership of means of production forced
people to be involved in primitive accumulation. This ugly situation
breeds corruption in the society.

Types of Corruption
There exist discordant views among scholars in the attempt
to delineate different types of corruption. This is due to differences
in culture on what constitute corruption.
The United Nations office on Drugs and Crime identify the
following as types of corruption.
a. Bribery: This involves the promise, offer of any benefit that
improperly affects the actions or decision of public official. It may
include also private individuals who serve in government
committees. A bribe may consist of money, company shares, inside
information, sexual favour, gifts etc.
b. Embezzlement, theft and fraud: These offences involve I
theft or misappropriation of resources entrusted with authority and
I
control over government property. These can include both public
officials and private individuals. This can be diversion of public goods
ortheftof cash bypublicofficialsorprivate individuals.
c. Extortion: According UNODC (2001) is the act of using
coercion. It involves coercing a person to pay money or provide
other valuables or personal favours in exchange for acting or failing
to act. This can be through the threat of physical harm, violence or
restraint. Example of extortion for instance, a sick woman needs to
see a doctor and at the hospital, the nurse tells her husband that he
must pay something extra just to get into the doctor office
d. Exploiting a conflict of interest/influence peddling, insider
trading. The above, involves, engaging in transactions, “selling”

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1

influence, or acquiring a position or commercial interest that is in

compatible with one's official role and duties for the purpose of
illegal enrichment.
e. Offering or receiving of an unlawful gratuity, favour or illegal
commission. This offence is aimed at .public officials who
received anything of value as extra compensation for the
performance of official duties.
f. Favouritism, nepotism and clientelism: - This is the
assignment of appointments, services or resources based on
family ties, party affiliation, tribe etc.
g- Illegal political contributions: This occurs when political
parties or the government in power received money in
exchange for non-interference and good will towards the
entity or group making the contribution. This is close to
bribery.
> h. Money laundering: - This is the process or act of channeling
the proceeds of corruption to safety through financial
institutions. Money laundering produces a corruptive effect
on national and international financial systems. It was
discovered that the corruptive effect of money laundering is
not only affecting private enterprises and their employees
but also the entire states.
Money laundering is the concealment of the source, nature,
existence, location and disposition of money or property
obtained illegally or from criminal activities such as
embezzlement, drug trafficking, prostitution, 419, .
corruption and larger scale crime (Ibi 2018).
In the Dictionary of Finance and Banking (2008), This term
“money laundering” was refers to as a process where
money is acquired illegally either through theft, drug
dealings etc. is cleaned so that it will appear to have come
from a legitimate source.
1. Political corruption. This type of corruption is perpetrated by
politicians, law makers, Governors, etc.
J. Bureaucratic corruption. This type of corruption has to do
with betrayal of trust by public officers in ministries,

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 department agencies (MDAs), using one's position for
selfish enrichment.
k. Systemic corruption: This is a situation where corruption is
widespread and, more or less institutionalised.
All the aforementioned types of corruption can be found in
Nigeria with great consequences on the socio-economic
development in the country.

The Nature and Characteristics of Corruption in Nigeria

To properly discuss the nature and character of corruption in Nigeria,
corruption is typified into political and bureaucratic corruption.
Political Corruption: This takes place at the highest levels of
political authority. It occurs when the politicians and political
decision-makers, who are entitled to formulate, established and
implement the laws, are themselves corrupt. It also takes place
when policyformulation and legislation is tailored to benefit political
leadership e.g. “Budget Padding” of the Nigeria National Assembly.
Another example is vote purchase; intimidation; political thuggery
etc. Electoral victory is no longer determined by popular votes but by
vote purchase, intimidation etc.
Bureaucratic Corruption: This occurs in the public
administration or the implementation of policies. It is the kind of
corruption the citizens encounter daily at places like the hospitals,
schools, police stations, public offices etc.
It is important to ask this questions, why is corruption
prevalent in Nigeria? The causes of corruption are many. These
causes have political and cultural variables. Research evidence point
to a link between corruption and social diversity, ethno-linguistic
fractionalisation, and existence of different belief systems (Upset
and Lenz, 2000). Studies also shows that corruption is more rampant
in most non-democratic countries and countries that have been
branded “neo-patriomonial, kleptocratic and prebendal (Girling,
2011).
From the aforementioned narratives, the political system
and the culture of a society could make people more prone to
corruption.

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Causes of Corruption
Scholars have identified many factors that leads to corruption.
1. Graff (2007) identifies organisational culture as one of the
cause of corruption. Corruption can be caused by the culture of an
organisation or group. Corruption in some organisations is in group
behaviour rooted in established arrangements. For instance, a newly
posted officer with no record of corruption might be socialised into
the act by colleagues. Such person with time will come to see the act
as an acceptable norm.
2. Clashing moral values. Some identify the cause of corruption .
to clash in moral values. Graff (2007) argued that corruption is
caused by certain values and norms of society that directly influence
the values and norms of individuals. These values and norms
influence the behaviour of individual officials, making them corrupt.
In our society, giving gifts is highly valued. Gifts are often referred to
as “kola”, this paves way for corruption.
3- Opportunistic factors. One cannot rule out opportunity as a
cause of corruption. If one- a public official is given the authority to
perform some sensitive rules; the person can use that opportunity
for personal enrichment.
4- Great inequality in distribution of wealth can cause
corruption. Any society where the gap between the haves and the
have not, corruption abound. Pervasive and chronic poverty,
extremely high levels of material deprivation and severe inequalities
in the distribution of resources are major determinants of corruption
in Nigeria (Osoba, 2010, Arowolo, 2011).
5- The Nigerian extended family culture places enormous
pressure on public servants forcing them to corrupt practices and
nepotism.
6. Lack of or total disregard for ethical standards in both public
and private agencies in Nigeria led to corrupt practices.
7- Poor rewarding system and greed. Our rewarding system in
Nigeria is one of the poorest in the world. Nigeria is a society where
national priorities are misplaced; meritocracy is discouraged, while
mediocrity is promoted.

The Effects of Corruption in Nigerian Socio-Economic

Since, the establishment of transparency international, has
consistently investigated corruption in Nigeria. To underscore the
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depth and pervasiveness of corruption in Nigeria, Transparency
International in its corruption perception index (CPI), ranked Nigeria
as the second most corrupt nation in the world for three consecutive
years. 2001,2002 and 2003 (ICPC, 2007)
Scholars have opined that corruption has both positive and
negative consequences. The positive consequences includes
political development or modernisation and economic advancement
and integration (Mye, 1967).
It is important to mention here that, the positive
consequences may be for a few people and limited impact on the
economy but negatives consequences on the economy and
wellbeing of the people. The negative consequences can be at the
international, national and individual levels. The lima declaration, as
cited by lgbuzor(2008), states that corruption:-
a. Erodes the moral fabric of the society;
b. Violates the social and economic rights of the poor and
vulnerable;
c. Undermines democracy;
d. Subverts the role of law;
e. Retards development and;
f. Denies the benefits of free and open competition.
Furthermore, the independent commission against
corruption (ICAC) of Australia noted that “globally, the world
economic forum has estimated that the cost of corruption is about
2.6 trillion US Dollars a year".
The impact of corruption disproportionately affects the
most vulnerable people in the society. Corruption deters
investment, weakens economic growth and undermines the rule of
law (,https://www.icac.now.gov.au/about-corrutoion/whv-expose-
corruption).
Marsha (2011) summarised the consequence of corruption thus:
1. Low foreign investment;
2. Reduced economic growth;
3- Shift from productive to less productive activities;
4. Grater inequality and high incidence of poverty;
5- Reduced efficiency of foreign aid, and;
6. Currency crisis;

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 Looking at the above, today Nigeria is currently, bedevilled
by these problems to a large extent This is so because Nigeria has
suffered from massive looting of the economy by public officials in
collaboration with private interest groups.
Other consequences of corruption in Nigeria includes
’
a. Unemploymentand underemployment;
b. Infrastructural decay;
' c. Poor quality and delivery of public projects;
. d. Poor public services;
e. Production and sale of substandard goods;
f. Incompetent political leadership;
g- Image and reputation bashing.
i The greatest consequence of corruption is the one that
;
■
affects individuals and in particular the poor members of the society. .
■

This is because the poor solely dependent on government for

healthcare, housing, security, welfare, education etc. when these
i are not provided, they are the most affected. Some of the
i
consequences on individual are;
Infant mortality due to lack of basic vaccines;
Lack of access to health care;
i. Accidents due to bad roads;
V. Unemployment;
V. Law life expectancy;
vi. Homelessness;
vii. Poverty;
viii. Diseases;
ix Hopelessness;
X. Premature death of individuals such retires, pensioners etc.
Corruption in Nigeria has seriously affected the socio­
economic development of the country.

Recommendations
1. The need for income redistribution so as to reduce the gap
between the rich and the poor.
i
2. The reward system in our society be reviewed to encourage
I meritocracy as against mediocrity.
3. The need for serious moral rearmament through social
education on the need for embraces the good values that will
discourage corruption and encourage hard work.

160
4- Strengthen the existing anti-corruption, bodies i.e. EFCC and ICPC
by making them truly independent, with adequate funding, and
the use of modern techniques for dictating corruption etc.
5- The need for political education so as to guard against political
corruption e.g vote purchase, election rigging, thuggery etc.
which led to the emergency of unqualified leaders.
6. Strengthening/making of new laws to establish separate courts
to handle cases of corruption to checkmate the problem of
judicial delay in such cases.
7. More emphasis should be geared towards prevention of
corruption rather than punishment, majors to check against
committing corrupt activities in organisations should be taking
e.g treasury single account (TSA). The law forming the due
process agency should be strengthen and be given more powers
to do their work
8. A subject/course on corruption studies should be introduce in our
school curriculum to teach our younger ones the negative
consequences of corruption from primary-tertiary levels in our
educational institutions. '
9- Lastly, I recommend the establishment of a whole ministry for
handling corruption issues. This ministry should compose of
reputable persons, from the religious bodies; civil society
organisations etc. The ministry should among other things
formulate policies to checkmate corruption in all its ramifications
in Nigeria.

Conclusion
There is no gainsaying that corruption is a global problem
but, it is more rampant in developing countries such as Nigeria. The
prevalence of corruption in Nigeria is endemic and cancerous. It has
permeated all fabric of the society.
Corruption has impeded the socio-economic advancement
of the country, as well as dented the image and reputation of the
country among the comity of nations. This development has affected
foreign investment flow, currency crisis, infrastructural decay etc. To
address the problem of corruption in Nigeria, all hands most be on
deck to emancipate our dear country from this malignant cancer
called corruption.
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