Causes, Challenges, and Solution to Corruption in Nigeria (Quantitative Analysis)
Chapter One
AIMS AND OBJECTIVES OF STUDY
The aim of the research work is to:
- Determine the major causes of corruption in Nigeria.
- Determine the challenges facing the federal government of Nigeria in the eradication of corruption in Nigeria.
- The best ways to resolve the issue of corruption in Nigeria.
- The relationship between greed and the level of corruption in Nigeria.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
CONCEPT OF CORRUPTION
The main forms of corruption are bribery, embezzlement, fraud and extortion. Even when these concepts are partly overlapping and at times interchangeable with other concepts, some of the basic characteristics of corruption can be identified through these concepts.
The decisive role of the state is reflected in most definitions of corruption, which is conventionally understood and referred to as the private wealth-seeking behaviour of someone who represents the state and the public authority. It is the misuse of public goods by public officials, for private gains. The working definition of the World Bank is that corruption is the abuse of public power for private benefit. Another widely used description is that corruption is a transaction between private and public sector actors through which collective goods are illegitimately converted into private regarding payoffs.
Political or grand corruption takes place at the highest levels of political authority. It is 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, and use the political power they are armed with to sustain their power, status and wealth. It is when policy formulation and legislation is tailored to benefit politicians and legislators. Political corruption can thus be distinguished from bureaucratic or petty corruption, which is corruption in the public administration, at the implementation end of politics. Petty corruption has also been called “low level” and “street level” to name the kind of corruption that citizens will experience daily, at times, in their encounter with public administration and services like hospitals, schools, local licensing authorities, police, taxing authorities and so on.
The money or benefits collected through corruption is “privatized” to various degrees. It may be extracted for the benefit of an individual who will share nothing or very little with his equals, or it may be extracted for the benefit of a particular group with some coherence and unity. This has led to a second analytically important classification of corruption, namely between private and collective forms of corruption.
An understanding of corruption that includes the possibility that it might be “collective”, institutionalized and organized in the interest of the ruling elite itself is vital to analyze the causes and logics of grand scale systemic corruption. To analyze who, in aggregate terms, benefits the most from corruption will also be required to understand the vested interests anti-corruption initiatives will be up against, and to identify the political/institutional levels most relevant for reform.
CHAPTER THREE
RESEARCH METHODOLOGY
METHODOLOGY
The methodology to be adopted is multiple regression analysis, employing ordinary least square (OLS) technique.
The other technique is adopted because of the following reasons,
- The parameter estimates obtained posses optimal properties of un-biasness, minimum variance, linearity etc.
- It is BLUE (i.e. best linear unbiased estimator).
- The computational procedure of OLS is fairly simple as compared with other econometric techniques.
- OLS is an essential component of most other econometric techniques (Kontsoyiannis 1997).
MODEL SPECIFICATION
DEPENDENT VARIABLE
GDP: This is chosen as a dependent variable in the course of this study because it is used as an indicator for assessing the growth cash money output in the country.
EXPLANATORY OR INDEPENDENT VARIABLE
- CORRUPTION INDEX (CORI): Is simply the work rank of the fraud in a particular country.
- JOBLESS RATE (JOBR)
CHAPTER FOUR
DATA PRESENTATION, DATA ANALYSIS AND DATA INTERPRETATION
DEPENDENT VARIABLE: GROSS DOMESTIC PRODUCT (GDP)
EXPLANATORY VARIABLE: CORRUPTION INDEX (CORI) AND JOBLESS RATE (JOBR)
METHOD OF DATA ANALYSIS: ORDINARY LEAST SQUARE
PERIOD: 2005-2014
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
The aim of the research work is to:
- Determine the major causes of corruption in Nigeria.
- Determine the challenges facing the federal government of Nigeria in the eradication of corruption in Nigeria.
- The best ways to resolve the issue of corruption in Nigeria.
- The relationship between greed and the level of corruption in Nigeria.
FINDINGS
From the tables above; we find out that:
- Corruption index (CORI)and jobless rate (JOBR) have significant effect on the gross domestic product of Nigeria (GDP).
- There is a strong relationship between the jobless rate (JOBR), corruption index (CORI) and the gross domestic product of Nigeria (GDP)
CONCLUSION
From the result of the analysis; we concluded that there is Corruption index (CORI)and jobless rate (JOBR) have significant effect on the gross domestic product of Nigeria (GDP). See table 1 above; corruption index has a negative effect on the gross domestic product of Nigeria; as the level of corruption continue to increase; the GDP continue to decrease.
RECOMMENDATION
We therefore recommend that:
- the federal government of Nigeria should allocate more funds to the security area of Nigeria
- The EFCC of Nigeria should improve on the level at which they operate if they really want to combact corruption
- The federal government of Nigeria should start fighting corruption from the government house down to the general public.
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