Skip to main content

Advertisement

Log in

Between Corruption and Development: The Political Economy of State Robbery in Nigeria

  • Published:
Journal of Business Ethics Aims and scope Submit manuscript

Abstract

The study is based on the hypothesis that there is a link between corruption and underdevelopment and that corruption is responsible for the shortcomings and poor performance of the Nigerian political economy. In addition to examining the historical trajectory of corruption in Nigeria, this paper delves into the underlying causes of corruption as well as its cumulative impact on national development in the country. Lastly, the paper assesses some public and private sector initiatives that have been taken and that might stem the tide of corruption.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

Notes

  1. From the land of Lilliput, in Jonathan Swift’s Gulliver’s Travels, where the people are only 15 cm high.

  2. I am indebted to the reviewer of this manuscript for bringing this salient point to my attention.

  3. Source: Article 4. African Union Convention on Combating Corruption and Related Offences, 2003.

  4. Felix Machi Njoku, “Nigeria at 40: Putting Africa’s Giant Back on its Feet.” In Pan African News Agency, Sept. 30, 2000. Available at WESTLAW, Africa News Library (quoting President Obasanjo).

  5. Excerpts of President Obasanjo’s Speech, BBC NEWS WORLD MEDIA WATCH, May 29, 1999, Available at: http://news.bbc.co.uk/hi/english/world/monitoring/newsid_356000/356120.stm.

  6. The title of this paper derives from this work.

  7. In fact, the street riots that engulfed many African countries in the late 1980s and early 1990s were due partly to salary arrears in the public sectors of many of these countries (Van de Walle 1994).

  8. Others have also argued that the current administration of due process causes a lot of delay, and therefore hampers the full implementation of the appropriation act passed by the National Assembly.

  9. Detailed information about the initiative can be found on the Global EITI website www.eitransparency.org (and on the Nigerian EITI-NEITI-Website, www.neiti.org.ng.

  10. Many people have taken it for granted that the various goals identified by EITI are all bundled together and particularly that (a) better transparency will lead to better governance and accountability, and (b) these in turn will foster growth and reduce poverty.

  11. See, for example, Leaving a Legacy of Transparency in Nigeria, Revenue Watch Institute Policy Brief, April 2007, pp. 3–4.

  12. Nigeria Extractive Industries Transparency Initiative: Audit of the Period 1999–2004 (Popular Version), http://www.neiti.org.ng/files-pdf/PopularVersionof1stAudit.pdf.

  13. Background Paper on the Nigeria Extractive Industry Transparency Initiative: Measures to Enhance Petroleum Revenue Transparency for Public Information and Policy Making, http://www.neiti.org.ng/files-pdf/BACKGROUND%20PAPER%20THE%20NEITI.pdf.

References

  • Achebe, C. (1983). An image of Africa. London: Penguin books.

    Google Scholar 

  • Adebajo, A. (2008). Hegemony on a shoestring: Nigeria‘s post-Cold War foreign policy. In A. Adebajo & A. R. Mustapha (Eds.), Gulliver’s troubles: Nigeria’s foreign policy after the cold war (pp. 1–37). Pietermaritzburg: University of KwaZulu-Natal.

    Google Scholar 

  • Adebayo, A. (1972). Formulating administrative reform strategies in Africa. Quarterly Journal of Administration, 6, 223–244.

    Google Scholar 

  • Adekanye, B. J. (1993). Military occupation and social stratification. An inaugural Lecture delivered at the University of Ibadan (Nigeria), November 25 1993.

  • African Capacity Building Foundation. (2007). Institutional Frameworks for Addressing Public Sector Corruption in Africa: Mandate, Performance, Challenges and Capacity Needs. An ACBF Operations Research, Harare, Zimbabwe.

  • Agbaje, A., Akande, A., & Ojo, J. (2007). Nigeria‘s ruling party: A complex web of power and money. South African Journal of International Affairs, 14(1), 79–93.

    Article  Google Scholar 

  • Agbese, P. O. (1992). With fingers on the trigger: The military as custodian of democracy in Nigeria. Journal of Third World Studies, 9(2), 220–253.

    Google Scholar 

  • Agbiboa, D. E. (2010). The corruption-underdevelopment Nexus in Africa: Which way Nigeria? Journal of Social Political and Economic Studies, 34(5), 474–509.

    Google Scholar 

  • Agbu, O. (2005). Oil and environmental conflicts. In H. A. Saliu (Ed.), Nigeria under democratic rule 1999–2003 (pp. 82–83). Ibadan: University of Ibadan Press.

    Google Scholar 

  • Ajakaiye, O. (2004). The centrality of planning to alternative development paradigms in Africa. In B. Onimode (Ed.), African development and government strategies (pp. 5–19). London: Zeb books.

    Google Scholar 

  • Ake, C. (1995). Socio-political approaches and policies for sustainable development in Africa. A paper delivered at the Annual Meeting Symposium of the African Development Banks. Abuja, Nigeria, May 25, 1995.

  • Ake, C. (1996). Democracy and development in Africa. Ibadan: Spectrum.

    Google Scholar 

  • Akinboye, S. O. (2001). Nigeria‘s transition to democracy: Prospects for consolidation. Africa Insight, 3(3), 3–13.

    Google Scholar 

  • Alam, M. S. (1989). Anatomy of corruption: An approach to the political economy of underdevelopment. The American Journal of Economics and Sociology, 48, 441–456.

    Article  Google Scholar 

  • Apampa, O. (2003). Nigeria development review: Corruption. Private Study Report.

  • Apter, A. (2005). The Pan-African Nation: Oil and the spectacle of culture in Nigeria. Chicago: University of Chicago Press.

  • Ayittey, G. B. N. (1992). Africa betrayed. New York: St. Martin Press.

    Google Scholar 

  • Ayittey, G. B. N. (1997). Africa in chaos. New York: St. Martin Press.

    Google Scholar 

  • Badmus, I. A. (2010). Oiling the guns and gunning for oil: Arms proliferation and the destruction of the Niger Delta. Journal of Alternative Perspectives in the Social Sciences, 2(1), 323–383.

    Google Scholar 

  • Badru, P. (1998). Imperialism and ethnic politics in Nigeria, 196–96. Trenton, NJ and Asmara, Eritrea: Africa World Press, Inc.

    Google Scholar 

  • Balogun, M. J. (2003). Causative and enabling factors in public integrity: A focus on leadership, institutions, and character formation. Public Integrity, 5, 127–147.

    Google Scholar 

  • Barro, R. (2000). Rule of law, democracy and economic performance. In G. O. O‘Driscoll, K. Holmes, & M. Kirkpatrick (Eds.), Index of economic freedom. Washington, DC: The Heritage Foundation/Dow Jones Company Inc.

    Google Scholar 

  • Bayley, D. H. (1966). The effects of corruption in a developing nation. The Western Political Quarterly, 19(4), 719–732.

    Article  Google Scholar 

  • Bowman, J. S. (1991). Introduction: Ethical theory and practice in public management. In S. B. James (Ed.), Ethical dilemmas. San Francisco: Jossey-Bass.

    Google Scholar 

  • Buchanan, J. M., Tollison, R. D., & Tullock, G. (Eds.). (1980). Toward a theory of the rent-seeking society. College Station, TX: Texas A & M University Press.

    Google Scholar 

  • Cohen, H. J. (2007, February 15). Fooling people some of the time. International Herald Tribune.

  • Commission for Africa. (2005). Our common interest: Report of the Commission for Africa. London: HMG.

    Google Scholar 

  • Dike, V. (2003). Nigeria and the politics of unreason: A study of the Obasanjo regime. London: Adonis & Abbey.

  • Dike, V. E. (2008). Corruption in Nigeria: A new paradigm for effective control. Accessed May 15, 2011, from http://www.africaeconomicanalysis.org/articles/gen/corruptiondikehtm.html.

  • Dudley, B. J. (1973). Instability and political order: Politics and crisis in Nigeria. Ibadan: Ibadan University Press.

    Google Scholar 

  • Dudley, B. J. (1982). An introduction to Nigerian Government and politics. London: Macmillan.

    Google Scholar 

  • Ekineh, A. (1997). Nigeria: Foundations of disintegration. London: New Millennium.

    Google Scholar 

  • Ekpenkhio, S. A. (2003). Public sector procurement reforms: The Nigerian experience. A paper presented to the Government of the Federation at the Regional Workshop On Procurement Reforms and Transparency in Government Procurement for Anglophone African Countries in Tanzania.

  • Ergas, Z. (1986). In search of development: Some directions for further investigation. Journal of Modern African Studies, 24(2), 303–333.

    Article  Google Scholar 

  • Ezekwesili, O. (2005). Due process mechanism and digital opportunities. Paper Presented to the University Community at Princess Alexandria Auditorium, University of Nigeria, Nsukka.

  • Gardiner, J. A. (2003). Defining corruption. In M. Punch (Ed.), Coping with corruption in a borderless world (pp. 25–40). Boston: Kluwer.

    Google Scholar 

  • Gary, I., & Karl, L. (2003). Bottom of the barell: Africa‘s oil boom and the poor. Catholic Relief Services.

  • Gillespie, K., & Okruhlik, G. (1991). The political dimensions of corruption cleanups. Comparative Politics, 24, 77–97.

    Article  Google Scholar 

  • Goudie, W., & Stasavage,D. (1997). Corruption: The Issue‘, Organisation for Economic Cooperation and Development (OECD), Technical paper no. 122, produced as part of the research programme on political economy and development in Africa.

  • Gould, D. J., & Mukendi, T. B. (1989). Bureaucratic corruption in Africa: Causes, consequences and remedies. International Journal of Public Administration, 12, 427–457.

    Article  Google Scholar 

  • Guest, R. (2004). The shackled continent: Africa’s past, present and future. Oxford: Pan books.

    Google Scholar 

  • Gwartney, J. D., & Wagner, R. E. (1988). Public choice and the conduct of representative government. In J. D. Gwartney & R. E. Wagner (Eds.), Public choice and constitutional economics (pp. 3–28). Greenwich: JAI Press.

    Google Scholar 

  • Heidenheimer, A. J., Johnston, M., & Le Vine, V. T. (1990). Introduction. In A. J. Heidenheimer, M. Johnston, & V. T. Le Vine (Eds.), Political corruption: A handbook (pp. 165–171). New Brunswick, NJ: Transaction Publishers.

    Google Scholar 

  • Holmén, H. (1990). State, cooperatives and development in Africa. Uppsala: The Scandinavian Institute of African Studies.

    Google Scholar 

  • Ibeanu, O. (2000). Oiling the friction, environmental conflict management in the Niger Delta, Nigeria. Environmental change and security project report, Issue 6 (summer 2000), 19–32.

  • Ibeanu, O. (2006). Civil society and conflict management in the Niger Delta. Lagos: Cleen Foundation.

    Google Scholar 

  • Ibodje, S. (1998). Elements of public administration. Warri: Eregha Publishers.

    Google Scholar 

  • Ihonvbere, J. O., & Shaw, T. M. (1998). Illusions of power: Nigeria in transition. Trenton, NJ: Zed books.

    Google Scholar 

  • Ikoku, S. G. (1985). Nigeria’s Fourth Coup d’état: Options for modern statehood. Enugu: Fourth Dimension.

    Google Scholar 

  • Iyoha, M. A., & Oriakhi, D. E. (2008). Explaining African economic growth performance: The case of Nigeria. In B. J. Ndulu (Ed.), The political economy of economic growth in Africa 1960–2000 (pp. 621–659). Cambridge: Cambridge University Press.

    Google Scholar 

  • Jabbra, J. G. (1976). Bureaucratic corruption in the Third World: Causes and remedies. India Journal of Public Administration, 22, 673–691.

    Google Scholar 

  • Johnson, R. A. (2004). The struggle against corruption: A comparative study. New York: Palgrave Macmillan.

    Book  Google Scholar 

  • Kew, D. (2006). Nigeria. New York: Freedom House.

    Google Scholar 

  • Kyambalesa, J. (2006). Corruption: Causes, effects and deterrents. Africa Insight, 36(2), 102–122.

    Google Scholar 

  • Leys, C. (1965). What is the problem about corruption? Journal of Modern African Studies, 3, 215–224.

    Article  Google Scholar 

  • Lipset, S. M., & Lenz, G. S. (2000). Corruption, culture and markets. In L. E. Harrison & S. P. Huntington (Eds.), Culture matters (pp. 112–124). New York: Basic Books.

    Google Scholar 

  • Luckham, R. (1971). The Nigerian military: A sociological analysis of authority and revolt, 1960–1967. Cambridge: Cambridge University Press.

    Google Scholar 

  • Maathai, W. (2009). The challenge for Africa. London: Routledge.

    Google Scholar 

  • Maduagwu, E. (1982). Problems of socialism: The Nigerian challenge. London: Zed books.

    Google Scholar 

  • Madunagu, E. (1983). Nigeria: The economy and the people. London: New Beacon.

    Google Scholar 

  • Mauro, P. (1996). The effects of corruption on growth, investment and government expenditure. IMF Working Paper (International Monetary Fund, Washington, DC).

  • Mauro, P. (2002). Corruption and the composition of government expenditure. In G. T. Abed & S. Gupta (Eds.), Governance; corruption and economic performance (pp. 197–224). Washington, DC: International Monetary Fund.

    Google Scholar 

  • Mazrui, A. (2006). A tale of two Africas: Nigeria and South Africa as contrasting visions. London: Adonis and Abbey Publishers.

    Google Scholar 

  • Mbaku, J. M. (1989). Export growth and economic performance in developing countries: Further evidence. Journal of Economic Development, 14, 127–142.

    Google Scholar 

  • Mbaku, J. M. (1992). Bureaucratic corruption as rent-seeking behaviour. Konjunturpolitik, 38, 247–265.

    Google Scholar 

  • Mbaku, J. M. (2000). Bureaucratic and political corruption in Africa: The public choice perspective. Malabar, FL: Krieger Publishing Company.

    Google Scholar 

  • Mbaku, J. M. (2001). Ethnicity, constitutinalism, and governance in Africa. In J. M. Mbaku, P. O. Agbese, & M. Kimenyi (Eds.), Ethnicity and governance in the third world (pp. 60–99). England: Ashgate.

  • Mbaku, J. M. (2008). Corruption cleanups in Africa: Lessons from public choice theory. Journal of Asian and African Studies, 43(4), 427–456.

    Google Scholar 

  • Mc Connell, T. (2007). Mail and Guardian, April 13–19, p. 12.

  • Moyo, D. (2009). Dead aid: Why aid is not working and how there is a better way for Africa. New York: Farrar and Straus and Giroux.

    Google Scholar 

  • Nwabuzor, A. (2005). Corruption and development: New initiatives in economic openness and strengthened rule of law. Journal of Business Ethics, 59(1), 121–138.

    Article  Google Scholar 

  • Nye, J. S. (1967). Corruption and political development: A cost benefit analysis. The American Political Science Review, 61(2), 417–427.

    Article  Google Scholar 

  • Obasanjo, O. (2003). Nigeria: From pond of corruption to island of integrity. Lecture Delivered at the 10th Anniversary Celebration of Transparency International Berlin.

  • Odunfa, S. (2007). Time to move on. BBC Focus on Africa, 18(2), 24.

    Google Scholar 

  • Ojiakor, J. O. (1980). 13 years of Military Rule, 1966–1979. Lagos: Daily Times.

    Google Scholar 

  • Okonji-Iweala, N., Soludo, C. C., & Muhtar, M. (2003). The debt trap in Nigeria: Towards a sustainable debt strategy. Trenton, NJ: Africa World Press.

    Google Scholar 

  • Olowu, D. (1987). Bureaucratic morality in Africa. International Political Science Review, 9(3), 215–229.

    Article  Google Scholar 

  • Olowu, D. (1993). Ethical violations in Nigeria's public services: Patterns, explanations and remedies. In S. Rasheed, & D. Olowu (Eds.), Ethics accountability in African public services. Nairobi: African Association for Public Administration and Management.

  • Omotola, J. S. (2006a). The next Gulf? Oil politics, environmental apocalypse and rising tension in the Niger Delta. ACCORD Occasional Paper Series, 1(3), 3–31.

    Google Scholar 

  • Omotola, J. S. (2006b). Through a glass darkly: Assessing the new war against corruption in Nigeria. Africa Insight, 36(4), 214–229.

    Google Scholar 

  • Osaghae, E. E. (1986). Do ethnic minorities still exist in Nigeria? Journal of Commonwealth and Comparative Politics, 24(2), 151–168.

    Google Scholar 

  • Osaghae, E. E. (1998). Nigeria since independence: Crippled giant. London: Hurst & Company.

    Google Scholar 

  • Osoba, S. O. (1996). Corruption in Nigeria: Historical perspectives. Review of African Political Economy, 69, 371–386.

    Article  Google Scholar 

  • Ostrom, E., Schroeder, L., & Wynne, S. (1993). Institutional incentives and sustainable development: Infrastructure policies in perspective. Boulder, CO: Westview.

    Google Scholar 

  • Remenyi, J. (2004). What is development? In D. Kingsbury, J. Remenyi, J. Mckay, & J. Hunt (Eds.), Key issues in development (pp. 22–44). New York: Palgrave Macmillan.

    Google Scholar 

  • Ribadu, N. (2006). Corruption: The trouble with Nigeria. Accessed April 11, 2010, from http://www.gamji.com/articl5000/NEWS5530.htm.

  • Sala-I-Martin, X., & Subramanian, A. (2003). Addressing the natural resource curse: An illustration from Nigeria. National Bureau of Economic Research, Working Paper 9804, University of Cambridge Press, Cambridge, MA.

  • Seers, D. (1972). The meaning of development. In N. Bastor (Ed.), Measuring development: The role and adequacy of development indicators. London: Frank Cass.

    Google Scholar 

  • Shaxson, N. (2009). Nigeria’s extractive industries transparency initiative: Just a glorious audit?. London: Chatham House.

    Google Scholar 

  • Soyinka, W. (1996). The open sore of a continent: A personal narrative of the Nigerian Crisis. Oxford: Oxford University Press.

    Google Scholar 

  • Stapenhurst, R., & Kpundeh, S. J. (1999). Curbing corruption: Toward a model for building national integrity. London: World Bank Publications.

    Google Scholar 

  • Stark, A. (1997). Beyond quid pro quo: What‘s wrong with private gain from public office? American Political Science Review, 91(1), 108–120.

    Article  Google Scholar 

  • Swift, J. (1986). Gulliver’s Travels, edited with an introduction by Paul Turner. Oxford: Oxford University Press.

  • Tanzi, V. (1998). Corruption around the world: Causes, consequences, scope and cures. IMF Staff Papers, 45(4), 559–594.

    Article  Google Scholar 

  • The Economist. (2000). The Economist. A survey of Nigeria: The last despot. January 13, 2000. Assessed May 12, 2011, from http://www.economist.com/node/273172?story_id=E1_NSPTSN.

  • The Economist. (2007). The Economist. Big men, big fraud and big trouble. 383(8526), 45–48.

  • Todaro, P., & Smith, C. (2003). Economic development (8th ed.). New York: Pearson Education.

    Google Scholar 

  • Transparency International. (2006). Global Corruption Barometer. Assessed January 22, 2010, from www.transparency.org.

  • Transparency International. (2007). Global corruption report. Assessed January 20, 2010, from www.transparency.org.

  • Udeh, J. (2000). Petroleum revenue management: The Nigerian perspective. Paper presented at World Bank/IFC Petroleum Revenue Management Workshop, Washington, DC, October 23–24.

  • UNDP (2002). Human development report 2002. Accessed Feb 15, 2011, from http://www.UNDP.org.

  • Usman, S. (2007). Nigeria: Scorching the resource curse. A paper presented at the London School of Economics and Political Science (LSE), October 11.

  • Van de Walle, N. (1994). Neopatrimonialism and democracy in Africa, with an illustration from Cameroon. In J. A. Widner (Ed.), Economic change and political liberalization in sub-Saharan Africa (pp. 129–157). Baltimore, MD: The Johns Hopkins University Press.

    Google Scholar 

  • Van Klaveren, J. (1990). The concept of corruption. In A. J. Heidenheimer, M. Johnston, & V. T. Le Vine (Eds.), Political corruption: A handbook (pp. 15–24). New Brunswick, NJ: Transaction.

    Google Scholar 

  • Wash Post (1998). Corruption flourished in Abacha's regime. Accessed Feb 29, 2011, from http://www.washingtonpost.com/wp-srv/inatl/longterm/nigeria/stories/corrupt060998.htm.

  • Werlin, H. H. (1973). The consequences of corruption: The Ghanaian experience. Political Science Quarterly, 88(1), 71–85.

    Article  Google Scholar 

  • Westlaw, Africa News Library (2000). Nigeria at 40: Putting Africa’s giant back on its feet. In Pan African News Agency.

  • William, R. (1987). Political corruption in Africa. Brookfield, VT: Gower.

    Google Scholar 

  • Wilson, J. Q. (1968). Corruption is not always scandalous. New York Times Magazine, April 28, pp. 54, 57, 59, 62.

  • Wittig, W. (1999). Building value through public procurement: A focus on Africa. International Trade Centre.

  • World Bank. (1981). Accelerated development indicators, 1996. Washington, DC: The World Bank.

    Google Scholar 

  • World Bank. (2000). World Bank Policy and Research Bulletin 12, April–June 2005, World Bank Africa Database CD-ROM 2004. Washington, DC: The World Bank.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Daniel Egiegba Agbiboa.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Agbiboa, D.E. Between Corruption and Development: The Political Economy of State Robbery in Nigeria. J Bus Ethics 108, 325–345 (2012). https://doi.org/10.1007/s10551-011-1093-5

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10551-011-1093-5

Keywords

Navigation