IMPACT OF CORRUPTION ON ECONOMIC GROWTH IN NIGERIA
Okparaibea Ndu Cyprian, Eggon Ahmed Henry, Ph.D and Sabo Moses Ajidani, Ph.D
Volume 4 Issue 2
Abstract
The study examined the impact of corruption on economic growth in Nigeria for the period of 1996-2023. The study utilizes secondary sources of data extracted from the Central Bank of Nigeria annual statistics bulletin. The study undertakes unit root test employing augmented Dickey-Fuller (ADF) method to determine whether the variables are stationary or not and the result shows that the variables are all stationary. The study employed cointegration test and the results shows that there is evidence of long run relationship among variables; the study employed the generalized linear model for estimation. The findings showed that petty corruption (PTC) has positive and statistically significant impact on gross domestic product in Nigeria during the period under study, similarly the findings showed that grand corruption (GRC), has negative and statistically insignificant impact on gross domestic product in Nigeria during the period under review and furthermore the findings showed that money laundering (MOL) has negative and statistically insignificant impact on gross domestic product in Nigeria during the period of investigation. Furthermore, the findings showed that bribery corruption (BRB) has negative and statistically insignificant impact on gross domestic product in Nigeria during the period of investigation. Therefore, the study found that corruption generally has negative influence on gross domestic product in Nigeria during the period of the study. The study recommends that government should enhance the rule of law, transparency, and accountability within institutions. This includes promoting an independent judiciary, effective law enforcement agencies, and robust anti-corruption mechanisms to combat petty corruption in Nigeria. Government should strengthen Anti-Corruption institutions; enhance the capacity, independence, and effectiveness of anti-corruption agencies such as the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC). Provide them with adequate resources, training, and legal authority to investigate and prosecute grand corruption cases in Nigeria. Keywords: Petty Corruption, Grand Corruption, Money Laundering, Bribery, Economic Growth
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