Corruption and Economic Development : Evidence from Nigeria

Corruption has affected many countries all over the world especially the developing countries. It has various implications for both the developed and developing economies. Corruption hampers development and thus raises the level of poverty in any economy that finds itself entrenched in corrupt practices. Corruption creates uncertainty and risk in the growth and development potential of any country. The study investigated the impact of corruption on economic development in Nigeria. Secondary data were sourced from World Bank reports on Nigeria and corruption reports from transparency international on Nigeria. The data were analysed using the Ordinary Least Square (OLS) regression technique. Hypothesis tested with respect to Corruption Perception Index (CPI) was not accepted implying that the tests were statistically significant, meaning that Corruption Perception Index (CPI), a proxy for corruption in this research negatively affects economic development. On the other hand, the hypothesis tested on the Corruption Rank (CR) of Nigeria and Relative Corruption Ranking (RCR) of Nigeria among countries under review was not accepted meaning that the relative position of Nigeria among countries under review and Nigeria’s rank on corruption cadre is also statistically significant. The findings show that corruption has a significant negative effect on economic growth and development. It is recommended that the Nigerian government should employ the strict application of anti-corruption codes as stipulated in the legislations that created the anticorruption agency without prejudice or double standard irrespective of the culprit’s stature or position in the society. Transparency, accountability and the application of the rule of law in dealing with corrupt government officials and politicians can lead to improved CPI ranking, induce investment, and foster economic growth and development.