Analysis of Oil Revenue and Economic Corruption in Nigeria
International and Public Affairs
Volume 2, Issue 1, March 2018, Pages: 1-10
Received: Feb. 20, 2018; Accepted: Mar. 9, 2018; Published: Apr. 3, 2018
Views 830      Downloads 44
Authors
Anfofum Alexander Abraham, Department of Economics, Faculty of Social Sciences, Nigeria Defence Academy, Kaduna
Olure-Bank Adeyinka Michael, Department of Economics, Faculty of Social Sciences, Nigeria Defence Academy, Kaduna
Article Tools
Follow on us
Abstract
Corruption is a pressing issue in Nigeria. President Muhammadu Buhari launched an anti-corruption drive after taking office in May, 2015. Corruption affects public finances, business investment as well as standard of living. Recent corruption scandals have highlighted the large sums that have been stolen and/or misappropriated. But little has been done to explore the dynamic effects of corruption as it affect the long run capacity of the country to achieve its potential. Economic corruption is a challenge internationally. To deal with it, we must investigate its causes. To do this, data from Nigeria for the period 1974-2012. It is revealed in the study that oil revenue and economic corruption in Nigeria are related. The study show that a 1% increase in oil revenue increase bribery, embezzlement and forgery in Nigeria by 15-43%. The study policies implications will be to enhance ways of reducing corruption and poverty so that the level of economic growth can be encouraging. That is the activities of the anti-corruption agencies in Nigeria such as the Economic and Financial Crime Commission (EFCC) and the Independent Corrupt Practices and related Offences Commission (ICPC) should be strengthened.
Keywords
Nigerian Economy, Oil Revenue, Economic Corruption, Government Expenditure
To cite this article
Anfofum Alexander Abraham, Olure-Bank Adeyinka Michael, Analysis of Oil Revenue and Economic Corruption in Nigeria, International and Public Affairs. Vol. 2, No. 1, 2018, pp. 1-10. doi: 10.11648/j.ipa.20180201.11
Copyright
Copyright © 2018 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
References
[1]
Ade, A. O., Babatude, H. and Awoniyi, M. A. (2011). The relationship between Corruption, Foreign Direct Investment and Economic Growth in Nigeria. An empirical investigation. Journal of Research in International Business and Management, 1(9): 278-292.
[2]
Adenike ET (2013) An econometric analysis of the impact of Corruption on economic growth in Nigeria. Journal of Business Management and Economics 4: 054-065.
[3]
Adewale SB (2011) the crowding-out effects of corruption in Nigeria: An empirical study. Journal of Business Management and Economics 2: 59-68.
[4]
African Economic Outlook (2015) Table 21-Corruption Perception Index.
[5]
Ajayi SI (1996) Macroeconomic approach to external Debt: the case of Nigeria. AERC.
[6]
Akinpelu, S., Ogunseye, U., Bada, I. S. and Agbayangi, A. (2013). The socio-economic determinants of corruption in Nigeria. European Journal of Humanities and Social Sciences, 19(1): 1-17.
[7]
Aliyu, S. U. R. and Elijah, A. O. (2009). Corruption and Economic Growth in Nigeria: 1986-2007, MPRA Paper, No. 12504, 10(47).
[8]
Ayobolu Jide (2006). EFCC, Corruption and the Due Process. Segun Toyin Dawodu, USA.
[9]
Becker, G. (1993)”Nobel Lecture: Economics way of thinking about behavior”, Journal of Political Economy 108: 234. 67.
[10]
Biersteker, T (1990) Structural Adjustment and Political Transition in Nigeria, a Seminar Paper, University of Ibadan.
[11]
CBCN (1998) Prayer on Corruption in Nigeria by the Catholic Bishops Conference of Nigeria (CBCN), Abuja.
[12]
Central Statistical Bulletin, (2010).V ol 21.
[13]
Deluca, F. N., ed. (2009). Economic Corruption: Cost and Prevention, Nova Science Publishers.
[14]
EFCC (2005). Effect of Corruption on Nigeria’s Economy. Nigeria EFFC Information Communication Technology Department. Abuja
[15]
FGN (2000) The Corrupt practices and Other Related offences Act, 2000.
[16]
Gray, C. W and D Kaufman (1998) “corruption and Development”. finance and Development”, March pp 3-6.
[17]
Grewal, Bet al (1980) The Economic of fiscal federalism, Carberra: Australia: National University Press.
[18]
Hirsch, W. Z (1979) the Economics of State and Local Government, and Local Government, New York McGraw- Hill.
[19]
I.C.P.C (2006). Nigeria and Corruption. Independent Corrupt Practices and Other Related Offences Commission.
[20]
International Monetary fund (1997) Nigeria: Experience with Structural Adjustment Program.
[21]
Jain, A. K. (2001). The Political Economy of Corruption, London, Rutledge.
[22]
Jeffrey A. Frankel (2010) Natural Resource Curse: A Survey. NBER Working Paper 15836 Working Paper Series.
[23]
Johnston, M (1997) “What can be done about Entrenched Corruption” in B. Pleskovic and J. E. Stiglitz (ed.) Annual World Bank Conference on Development Economics, Washington: World Bank.
[24]
Johnston, M. (2000). Corruption and Democracy: Threats to Development, Opportunities for Reform. Paper prepared for Department of Political Science, Colgate University.
[25]
Katouzian, M. A, (2009). Political Economics, translated by M. Nafisi and K. Azizi, Tehran, Markaz Publisher. 32.
[26]
Khan, M. H., 1996. “A Typology of Corrupt Transactions in Developing Countries” IDS Bulletin.
[27]
Klitgard, R. (1998) “International Cooperation against Corruption “ Finance and Development, March, pp 3-6.
[28]
Knack, S and Philip K. (1995). Institutions and Economic Performance: Cross Country Tests, Economics & Politics, 207-27.
[29]
Lucas, R. E (1988). On the mechanics of Economic Development. Journal of Monetary Economics, 2(1); 1-9.
[30]
Lui F. T. (1985) “An Equilibrium Queuing Model of bribery”, Journal of Political Economy. 93/40 760-81.
[31]
Macrae, J. (1982)” Underdevelopment and the Economics of corruption: A Game Theory Approach” World Development 10 (8): 667 87.
[32]
Mauro, Paolo (1995) “Corruption and Growth” Quarterly Journal of Economics 110(3), 681–711.
[33]
Mouiro, P. (1997) “The Effects so Corruption on Growth, Investment and Government Expenditure. A cross- country Analysis “in Kimberly and Elliott (ed) Corruption and the Global Economy Washington. Institute for International Economics.
[34]
Muhuda, P. (2013). Investigating the relationship among corruption, Poverty and economic growth. Nigeria Journal of Banking, 4(2): 15-30.
[35]
Musgrave, R. A and P. B Musgrave (1984) Public finance in theory and Practice, NewYork: McGrave Hill.
[36]
Nwabuzor, A. (2005). Corruption and Development: New Initiatives in Economic Openness and Strengthened Rule of Law. Ethics, a publication of Springer Volume 59, Number 1, June 2005, pp. 121-138(18).
[37]
Nwankwo O (2014) Impact of Corruption on Economic Growth in Nigeria. Mediterranean Journal of Social Sciences. 5:41-46.
[38]
Nwankwo, A. A (1983) Corruption in Anambra State, Enugu: Frontline Publishers.
[39]
Nwankwo, A. A. (1999) the Stolen Billions. Enugu: Frontline Publishers.
[40]
Nwaobi, G. C. (2004) Solving Poverty Crisis in Nigeria: An applied General Equilibrium Approach”, http://econwpa.wustl.edu/eprints/comp/papers/0312/0312003.abs
[41]
Nwaobi, G. C., 2004. Corruption and Bribery in the Nigerian Economy: An empirical investigation. Public Economics 0404006, Econ WPA. Retrieved from: http://pap ers.ssrn.com/sol3/papers.cfm
[42]
Obayelu AE (2007) Effects of Corruption and Economic Reforms on Economic Growth and Development: Lessons from Nigeria. Being a paper prepared and submitted For 2007 African Economic Conference. Department of Agricultural Economics, University of Ibadan, Nigeria.
[43]
Ogwuma, P. A (1998) “The Efforts of the Central Bank of Nigeria in the Fight Against Advance fee fraud” Bullion, 22 (2) p 3-5.
[44]
Okonjo-Iweala, N (2005). Managing the Challenges of Economic Reform in a Global Context: The Case of Nigeria. Global Economic Governance Programme Annual Lecturer 27 May 2005, University college Oxford.
[45]
Okonjo-Iweala, N and Osafo-Kwaako P. (2007. Nigeria’s Economic Reforms: Progress and Challenges. Global Economy and Development program. The Brookings institution, Washington D C, March 2007.
[46]
Ola AS, Mohammed A, Audi MS (2014) Effects of Corruption on Economic Development in Nigeria. Global Journal of Interdisciplinary Social Science 3: 209-215.
[47]
Osoba SO (1996) Corruption in Nigeria: Historical perspectives. Review of African Political Economy, 23(69): 371-386.
[48]
Ribadu, M. N (2003). Economic Crime and Corruption in Nigeria: the Causes, Effects, and efforts aimed at combating these vices in Nigeria. Paper presented at the Monaco World Summit 5th International Summit on Transnational Crime Monte Carlo 23rd and 24th October 2003.
[49]
Ribadu, M. N. (2004). “Corruption costs Nigeria 40 percent of oil wealth” Retrieved from http://www.boston.com/news/world/africa/articles/2004/12/17/corruption_costs_nigeria_40 percent of oil wealth official says? Mode=PF
[50]
Ribadu, M. N. (2006). Nigeria’s Struggle with Corruption. A paper presented to US Congressional House Committee on International Development, Washington, DC on 18 May 2006.
[51]
Rose – Ackerman, S. (1997) “Corruption and Development” in B. ple Skovic and J. E. stiglitz (ed). Annual World Bank Conference on Development Economics Washington: World Bank.
[52]
Rose- Ackerman (1978) Corruption: A study in political Economy New York: Academic Press.
[53]
Rotimi Ekundayo Mathew, Obasaju Barnabas, Lawal Adedoyin Isola and IseOlorunkanmi Joseph (2013) Analysis of Corruption and Economic Growth in Nigeria. Afro Asian Journal of Social Sciences Volume 4, No. 4.2 Quarter II 2013.
[54]
Sachs. G. (2007). “Corruption Remains Nigeria's Long Term Challenge”. The Daily Independent Newspapers Tuesday, 24 April 2007.
[55]
Sanusi, L. S. (2013). Corruption, insecurity threaten economic growth in Nigeria. Punch news online. March 2013.
[56]
Shleifer, A and R. W Vishny (1993) “Corruption” Quarterly Journal of Economics 108(3) 599–617
[57]
Tevei, F. N., Albert, C. P. and Charles, S. (1986). A policy-oriented theory of corruption. American Political Science Review, published in United State of America. University of Michigan Flint.
[58]
Transparency International (2016) corruption Perceptions Index (http://www.transparency.org).
[59]
Umar I Samsudin RS, Mohamed M (2016) Understanding the Successes and Challenges of Anti-Corruption Agency (Aca) in Nigeria: A Case of Economic and Financial Crimes Commission. Asian Journal of Multi-Disciplinary Studies.
[60]
Van R. el. Al (1997) “Corruption and the Rate of temptation. Do low wages in the Civil Service cause corruption”? IMF Working Paper 97/73.
[61]
Vietor, R. H. K. (2007). How Countries Compete: Strategy, Structure and Government in the Global Economy, Boston: Harvard Business School Press.
[62]
Word Bank (1994) Development in practice: Governance (The World Bank Experience) Washington: World Bank.
[63]
World Bank (1996) Nigeria: Prospects for Development, Country Operations Division, West Central Africa Department, World Bank
[64]
World Bank (2016). Corruption Indices.
[65]
Yadollah Dadgar and Rouhollah Nazari (2012) the Impact of Oil Revenue on the Economic Corruption in Iran. Actual Problems of Economics, #2, 2012.
ADDRESS
Science Publishing Group
548 FASHION AVENUE
NEW YORK, NY 10018
U.S.A.
Tel: (001)347-983-5186