From time immemorial, corruption in Nigeria has been a bold headline entrenched in the backbone of Nigeria’s economic and political landscape. Every day, ordinary citizens pay the price and are on the receiving end of the effects of corruption and mismanagement of public funds. From the students in dilapidated classrooms to unemployed youths, the effects of corruption do not only affect the economy. The effect is deeply personal. As some political elites redirect public funds, millions of Nigerians are left without necessities of life, and the youths are left unemployed with meagre or no source of income.
In this article, what corruption itself mean, the effects of corruption, mismanagement of funds and its impact on the Nigerian people and its economy will be discussed.
What is Corruption?
In Transparency International, corruption is defined as “the abuse of entrusted power for private gain.” It is a criminal offense usually undertaken by a person in a higher authority in an organization. Essentially, it involves the use of a higher position to benefit oneself at the detriment of others. Examples of corruption include: bribery, extortion, mismanagement of public funds, nepotism, cronyism, and fraud, amongst others. It often results in a lack of trust, erodes institutions, and diverts resources away from those who need them most, and this leads to an ever-widening gap in underdevelopment, inequality, and inefficiency.
Public funds which are meant to be utilized are redirected for personal gains. For example, funds that are meant for the construction of new roads might be redirected through inflated contracts and ghost workers.
Economic Impact of Corruption in Nigeria
1. Corruption as an Obstacle to Economic Growth
Corruption is an obstacle to economic growth by undermining investment and distorting resource allocation. Transparency International says Nigeria is ranked consistently among the most corrupt Nations in the World. This therefor discourages foreign investments and deters innovation.
2. Lack of Trust
Due to the effect of corruption, the masses tend to lose interest in government and politics, such that even if a morally upright individual runs an office, he or she would not be trusted. The masses disengage from political activities, leading to political apathy. Corrupt practices in the judiciary could undermine the Rule of Law and disrupt proper justice system. Lack of trust in the judiciary might spur the masses to taking laws into their hands and engage in jungle justice, because they believe that the system has failed them. When individuals in authority are corrupt in this context, people tend to lose faith in them and find other ways (which might be against the law) to do things. This may lead to anarchy.
3. Devaluation of the naira and inflationary pressure
Devaluation of a currency is a happens when a Nation’s central bank intentionally lowers the value of a the said currency so as to boost the struggling economy. This works by reducing import and increasing export. It reduces import because the goods would be usually more expensive to buy from overseas. This increased cost of importing goods would reduce purchasing power of individuals and further increase inflation.
Mismanagement and Its Daily Toll on Nigerians
The real victims of corruption are everyday Nigerians. The roadside trader, the unemployed youth, and even students. It means that the money meant for the provision of clean water, good roads, social amenities, etc are used for something else. Corruption deteriorates government organizations, which makes access to crucial services an extravagance for the few compared to a right for all. The market vendor pays several unlawful tolls on the road, and the recent graduate needs to “know someone” in order to obtain employment. These acts contribute to a high rate of poverty and inequality.
Despite the huge budget and loans, many roads are in a dilapidated format and sometimes undergo “maintenance” which doesn’t last for long. The construction/infrastructure sector has seen billions of naira lost to substandard projects. Up until 2024, the Abeokuta-Lagos expressway has been long neglected but is currently undergoing reconstruction due to the bureaucratic hurdles as explained by the Governor of Ogun state.
What to be done
To combat corruption, quite a number of strategies must be put in place from strengthening institutions to enforcing transparency and integrity in each sector. To ensure transparency, e-procurement system might be put in place to track spendings and government expenses. Security and resource mismanagement is one of the key drivers of corruption and so funds allocated for military and police reforms needed to target insurgency and social unrest. As a result of corruption, there is never enough funds to combat these issues. This further leads to a state of unrest in such affected communities, leading to a loss of lives and properties.
In 2015, Nigeria’s former national security adviser, Sambo Dasuki, arrested for allegedly stealing $2bn (£1.3bn). This money was meant for the for the fight against Boko Haram Islamist militants. If others are arrested such as in this case, it will serve as a lesson. Such corruption cases not only weaken the Nation’s defense, but also erodes trust in government leadership. Corruption has a way to affect youths. When they see that some leaders are successful via dubious means, it gives a notion that corruption is necessary for success. Also, the treasury and Judiciary systems must work hand-in-hand to bring the offenders to book when necessary. Beyond this, corruption erodes societal norms and normalizes dishonesty. It creates a culture where bad behaviours are considered “normal.”
Conclusion
The effect of corruption is felt everywhere, especially by the people at the grassroot. It creates a sense of hopelessness, political apathy and loss of trust in the Government. In a nation rich in resource just like Nigeria, prioritizing transparency and integrity is necessary and a little price to pay to the citizens. It doesn’t have to start from the high ups. It can start form you and I. Giving the accurate figures on how much was spent on a project at the office, giving the exact figures on how much that book cost and many more are ways by which we can reduce corruption in our society.
