John N.N. Ugoani, PhD
College of
Management and Social Sciences, Nigeria
Email:
drjohnugoani@yahoo.com
Submission: 04/10/2016
Revision: 30/12/2016
Accept: 22/07/2017
ABSTRACT
Mismanagement and corruption negatively affect the society and lead to
poor service delivery, poverty and governance failures. Nigeria has a long
history of deceitful leadership and governance deeply rooted in corruption.
This entrenchment of corruption has made it difficult for the nation to divorce
itself from the problems of governance failures. Some public officers dish out
public funds with reckless abandon, in the manner that debases democracy and
the principles of good governance. Despite President Obasanjo’s personal
commitment to fight corruption during his tenure the epidemic remains in
Nigeria. In Nigeria about 70 percent of past administrations are perceived as
corrupt and about 70 percent of the citizens are poor. The government need to
muster the political will to recover all stolen public funds because no
governor, no deputy governor, no president, no vice president no chairman, no
vice chairman is immune from criminal investigation, and section 308 of the
constitution might not mean so. Exploratory research design was used for the
study. Data were analyzed through descriptive statistical method, and it was
found that corruption contributes to governance failures in Nigeria.
Keywords: Mismanagement, Corruption,
Plutocrats, Paupers, Middle class, Militancy, Poverty, Governance, Leadership,
Doctrine of necessity, Yam and goat mentality.
1. INTRODUCTION
Mismanagement
is another name for describing corruption since it connotes managing resources
incompetently, fraudulently and dishonestly. Corruption which relates to the
abuse of public office for personal benefits is as old as mankind. It often
incastrates governments, render them impotent, and ultimately results in
governance failures.
Governance
is basically, the exercise of authority held in trust, for the benefit of the
people in society. However, Nigeria’s history is almost synonymous with the
history of corruption and governance failures, starting from the colonial days
to the present time.
According
to Semenitari (2005a) some Nigerians believe that among the problems
of Nigeria include its history of deceitful leadership that has existed for
long, in which case, the people no longer trust their leaders. Smith (2005a)
summaries the political intrigues and shenanigans that took place under the supervision
of the London Colonial Office as “the last great treacherous act of the British
Raj”.
According
to him, what took place in the name of constitutional conferences, elections,
and population census was nothing to the British but a way to prosecute one of
their numerous wars. He posits that “even though the British knew his other
name was Mr. Corruption, they saw no evil in him for he was their puppet. And
Mr. corruption championed the deal that ensured a two-party federal coalition”.
He states
that from his experience with Okotie-Eboh, it seemed that the British
government wanted to hand over power to a corrupt group of politicians.
Suggesting that, perhaps, corruption was seen as the speedy way to create a
conservative middle class which would be sound, stable and most important,
anti-communist (SMITHb, 2005; SMITH, 2005c; SEMENITARI,
2005b).
By 1960,
corruption has become entrenched in Nigeria. The number one problem identified
by the military coup by the majors, for seizing political power in January,
1966, was corruption. According to Agwunobi (2005) the military in January 1966
saw bribery, and corruption, nepotism, tribalism, rabid regionalism and
political antagonism as responsible for governance failures.
It
identified the political profiteers, the “men and women in high and low places
that took bribes and demanded ten percent, those that kept the country divided
so that they could remain in office as ministers and VIPs of waste”. Even
though the Balewa regime was reactionary and totally corrupt, considerable
efforts were put into constructing and backing the awful regime by the British.
Although
the January 1966 military coup was bloody, it destroyed the totally discredited
First Republic as Nigeria never had been the model democracy that the British
claimed to have left behind. Moreover, the blatant corruption, election rigging
and thuggery in the years from 1960 to 1966 did not start only when the British
departed. They were instigated, condoned, tolerated and covered up by the British
before Independence.
By 1966,
the growing disillusion with the Balewa government, which was common among
civil servants, teachers and academics, had spread to the Army, and quickly led
to the bloody coup (TELL MAGAZINE, 2005). However, by the early 1970s the
military government started exhibiting signs of corruption and inefficiency in
governance, and the first reason for the overthrow of the military government
of Gowon by Mohammed in 1975 was bad
government.
The
Mohammed government then put through a massive purge of a perceived powerful
and highly corrupt public/civil service in 1975 (Agwunobi, 2005). However,
according to Williams (1981), it was the military that put Nigeria into a Civil
War, and was itself unstable to the extent that two military heads of state
were assassinated and one deposed. He posits that even though the January 1966
military coup was not smooth, it was nevertheless widely welcomed by Nigerians,
who were completely tired of the gangaterism, corruption and oppression of
politicians’ rule.
After a
long military rule (1966-1979) the military surrendered political power to
civilians in 1979. According to Williams (1981) the Shagari administration
inherited a weak bureaucracy at all levels of administration, and public
services strained by the expansion and the demands of an expanding economy, to
which oil revenues gave immense strength, and also producing serious inflation.
The Second Republic was shortly over-powered by corruption.
The
politicians started to demand more than ten percent on government contracts,
there was a bazaar of oil deals, payments for contracts not executed, among
others. According to Agwunobi (2005) “while all these went on, salaries of
civil servants and teachers remained unpaid, hospitals remained without drugs,
schools without textbooks, and there was a situation of uneven development,
reflecting an uneven response to socio-economic change by government”.
This bad
governance posture accelerated the military coup in the wee hours of 1983 that
was quickly justified on the basis of massive corruption in public life. The
military could not easily kill corruption, but also struggled with it until
1999, when it again surrendered power to civilians.
The
political party in government from 1999, even after singing anti-corruption
songs aloud, establishing anti-corruption agencies, watched corruption to flow
like river Niger, until it was itself washed away by corruption itself in 2015.
With corruption issues such as the corruption and deceit behind the Lagos-Kano
rail line project, among others, it is generally believed that past
mismanagement destroyed the Nigerian economy (AKINREMI, 2015, ADEYEMI, 2015).
The arms
deal has added another dimension to the corruption saga in Nigeria. Right at
the presidency, contracts worth billions of naira were given out without due
process and minimal documentation (Alli, 2015). Revelations about the use of
public funds for political campaigns is a dangerous dimension of the impunity
of corruption, against International Best Practices (US CORRUPT PRACTICES ACT,
1925).
Even
though the military could not wipe out corruption in governance in Nigeria, it
felt a political obligation to challenge the promotion of corruption in
society. And again, according to Elaigwu (1985) no nation’s armed forces can
remain apart from politics, since politics is concerned with the distribution
of values and power within a society (MAZRUI, 1973).
For
Nigeria to achieve sustainable development, corruption must be reduced to the
bearest minimum, and this requires a comprehensive framework that hinges on
solid political will. For example, according to Akintayo (2016) Political will
is a key ingredient in the transformation effort in Singapore’s corruption
infested past, as it formed it’s all important sub-structure, upon which all
the super-structures of anti-corruption work nest. It provides the soil and the
nutrient which allows the seeds of anticorruption work to germinate and
grow.
According
to Obasanjo (2016): Today corruption drains billions of dollars from our
economy that cannot afford to lose even a million dollars. It seems we are just
beginning the fight, until recently; it seems corruption had returned with a
vengeance, taking a seat at the very heart of government. This statement reinforces
the serious status of corruption in Nigeria governance structure. It is
believed in high and low places that corruption is wealthy, powerful,
influential and practically in all institutions, including religious
institutions in Nigeria (OSINBAJO, 2017).
1.1.
Statement
of the Problem
Whether
civilian or military government, corruption has been a major cause of
governance failures in Nigeria. There are many faces and meanings of corruption
that have continued to undermine the process of governance in Nigeria. In broad
terms, a distinction can be made between governmental and private corruption.
The
former being the one that directly involves government officials, ministries,
departments and agencies, (MDAs) and jeopardizes good governance, while the
latter is involved with corrupt practices in corporations, and others like the
Halliburton multimillion dollar scam (DANIEL, 2016).
Public
corruption could therefore be related to such ones as the billion dollars arms
scandal in Nigeria. This was money recovered from a previous corrupt government
and to be used to fight terrorism, but was instead shared by government
officials, politicians, agents, touts, military commanders, militant
commanders, and sundry others.
Tunji
(2016) estimates that as at 2012, Nigeria had lost over $400 billion to
corruption since 1960. Corruption brought about the 1966 military coup. The
1983 Coup was justified on the basis of attempts to fight corruption in all its
ramifications, but could not even with the so-called draconian Decrees.
The
leaders of the 1985 military coup promised to clear the mess of all previous
administrations and restore the country to the paths of bliss, with the
introduction of jaw-breaking programmes like: The Directorate of Food, Roads
and Rural Infrastructure (DFRRI), the Mass Mobilization for Reliance, Social
Justice and Economic Recovery (MAMSER), Better Life for Rural Women, the
Natural Directorate of Employment (NDE) among others. Out of the whole, only
the NDE is struggling to maintain its signpost today; the rest have been washed
away by corruption.
Besides
the allegations of missing $12billion Gulf Oil money during the currency of the
Babangida regime, there were allegations that those DFRRI, MAMSER, among others
were conduit for siphoning public money from the treasury into private foreign
accounts. Subsequent military regime of Abacha was neck deep in mismanagement
and corruption, putting billions of dollars in far away countries, like the UK,
USA, Germany, among others.
The
succeeding civilian government was dinning and winning with Mr. Corruption for
16 years. At a time, it was thought that
corruption had become institutionalized and a way of life, as was the case in
Sierra Leone, and even racing to surpass it. According to Kpundeh (1999) under
Presidents Stevens, Momoh, and Strasser, there was lack of political will to
systematically fight corruption.
He posits
that Momoh was responsible for a group that was drenched in sectionalism,
tribalism, favouritism, nepotism, in-competence, ineptitude, treachery,
indolence, winning, dinning and womanizing, which inflicted the severest
mismanagement on the affairs of that country (UGOANI, 2016).
Because
of the high levels of mismanagement and corruption in Nigeria, many Nigerians
believe that the war against them must not be left to the government alone to
fight, bearing in mind the fact that corruption is everywhere in Nigeria.
According to Omonijo, et al (2005) President Obasanjo’s view suggesting that a
purported 3rd term opportunity could provide a framework for the economic plan
of his administration, and how the policies could bring about radical changes
on the six planks of the economic framework before 2030, did not go down well
with many politicians, and almost overheated the polity.
That also
caused a serious erosion of confidence on the Obasanjo administration, despite
its anticorruption posture. Na Abba (2006) thought that despite the efforts of
the Obasanjo administration corruption was everywhere in Nigeria. In a book
review Sowemimo (2006) reports that Nigerians need to retrace their steps from
corruption and embrace hard work, dedication and the will to collectively move
the nation away from the unenviable derogatory appellation as the third most
corrupt nation on planet earth, to join the big league of saints. Some state
governments are known for abandoned projects and even paying for jobs not
executed.
For
example, Ero (2005) reports that Edo State legislature found out that the state
government paid N14billion for poorly executed road works, mostly without
contract agreements. Eriye (2011) laments that Nigerians have fought sundry
wars, the bloody Civil War, the bloodless but short-lived War Against
Indiscipline (WAI) and some others.
But in
spite of our apparent warlike ways, we do not have an appetite for a war
against corruption. In a country that produces oil, and where there is always
oil scarcity, business people, politicians, and oil marketers are drenched in
corruption in the oil and gas sector (OGS). Alli (2012) states that 20
marketers arraigned for oil subsidy scam had lobbied for the invocation of plea
bargaining with a strong commitment to refund excess subsidy cash involving
about N400billion paid to them (ANUMIHEB, 2016).
Against
all the mess, under the presidency of Yar’Adua, Abubakar (2007) reports that
the President of Nigeria had said and decreed that people should have a say on
who leads them and until the people cast their votes, they should expect
accountability. This lone voice was quickly over taken by corruption, and the
corruption bazaar continued unabated.
According
to Media Trust Ltd (2005) corruption is the problem with Nigeria. Poor quality
of service delivery is common across public sector institutions in Nigeria,
suggesting a lack of good management in the governance architecture. There is
need for good management in governance because governance could best operate
when there is less corruption and when there is consistency between resources
and establishment of good governance and management structures which have
transparency and higher degree of accountability.
As MDAs
and other institutions remain vulnerable to political corruption and
opportunism in Nigeria, what is needed is a high dose of political will to
prosecute governance reforms and institute competent management for the
reengineering of public affairs for the benefit of the greater majority. The
present government is spending a great deal of time chasing about US$150bn of
public funds purportedly mismanaged by the instrumentality of corruption and
put away in unknown places (Laccino, 2015) Today, corruption and mismanagement
in the public sector continue to rape the nation of necessary funds for
sustainable development.
According
to Anumihe (2016a) the Federal Government in 2013 lost over US$518 million to
oil swap and Offshore Processing Arrangements (OPAs) due to inefficiencies by
the Nigerian National Petroleum Corporation (NNPC) and its subsidiaries.
Corruption has done great damage to the global economy and the attainment of
the Sustainable Development Goals (SDGs) target in 2030 requires a united
action against it.
For
example, according to Kerry (2016) the global cost of corruption is about
US$2.6trillion per annum. Corruption has been the bane of poor governance that
has resulted to the impeachment of two governors in the country’s recent
political history. For example, Alamieyeseigha was impeached after he was
accused and found guilty of corrupt acquisition of shares in some companies, a
refinery in Ecuador, and properties in Lagos, Abuja, Port Harcourt, London,
among other sundry criminal offences (MANUAKA, 2005).
The heavy
evidence of corruption, its negative effect on governance, as well as the
consequences of poverty and unemployment make a study of this nature very
urgent, at least now that no earlier study known to the researcher had done so
in details with respect to Nigeria (NZENWA, 2000, NWIZU, 2002).
1.2.
Objective
of the Study
The study
was designed to explore the roots of corruption and governance failures in
Nigeria.
1.3.
Significance
of the Study
The study
will help students, academics, governments, researchers and others interested
in public sector management understand the role of corruption with regard to
mismanagement and governance failures in Nigeria.
1.4.
Research
Questions
To
achieve the objective of the study, three research questions were formulated.
a)
Is there any evidence of mismanagement in Nigeria’s public
sector?
b)
Is there any evidence of corruption among Nigerian
leaders?
c)
Does corruption influence governance failures in Nigeria?
1.5.
Restatement of Research Questions
a)
There is evidence of mismanagement in the Nigerian public
sector.
b)
There is evidence of corruption among Nigerian leaders.
c)
There is evidence that corruption influences governance
failures in Nigeria.
2. LITERATURE REVIEW
Corruption
which may be defined as the abuse of power for private gains has become the
most challenging obstacle to sustainable development and a major cause of
governance failures around the world. According to Campos and Pradham (2007)
corruption has long plagued organized societies.
From
ancient China to modern Europe and North America, governments and societies
have struggled to contain corruption. According to them, thousands of years of
literature document the presence of corruption in society. They posit that
corruption involving individuals, groups or firms, both in the public and
private sectors influence the formulation of laws, regulations, decrees and
other government policies to the advantage of the people or groups, who
exercise political power which in the final analysis lead to governance
failures (CAMPOS; BHARGAVA, 2007).
According
to Nna, et al (2010) though corruption is not akin to Nigeria, corruption has
almost become peculiar to the country so much so that one can hypothesize that
Nigeria is perhaps the most corrupt country on earth in the last decade.
Adewole, et at (2011) posits that corruption is as old as the Nigerian nation
itself, dating back to 1950s.
According
to them, in recent time, the situation has become so bad that corruption has
almost turned out to be a national culture. They insist that as of now, the
Nigerian society is characterized by social malaise such as insecurity of life,
poverty, armed robbery, electoral rigging, moral degeneration, succession crisis,
and a general lack of accountability by those entrusted with governance.
According
to Adebimpe (2011) corruption is antithetical to justice and development,
investment, economic growth and government expenditure. He believes that
corruption destroys the legitimacy of government and insists that corruption
was responsible for the first 1966 coup, as well as the overthrow of the
Shagari administration in 1983. According to him, corruption undermines
competitive efficiency and increases the level of absolute poverty in a
country, with the corresponding inflation and hunger (OKERE; SALAU, 2016;
HERBERT, 2014; ESSEN, 2016).
2.1.
2.1 Corruption and Bad Government
Corruption
manifests in many forms including bad government and its failure. Bad
governance results to poverty, insecurity, infrastructural decay, despondency,
poor social amenities, among others. Girishanker, et al, (2002) believe that
governance refers to the exercise of power through a country’s economic, social
and political institutions that shape the incentives of public policy makers
who are the providers of public services.
But today
in Nigeria, corruption has resulted in the inability of government to provide
services for the citizens as it should, as shown by not being able to pay
workers’ salaries regularly, inability to provide enough classrooms for
children of school age, as well as inability to provide an acceptable level of
healthcare, among others. Corruption is also responsible for the inability of
government to enforce its own laws, rules and regulations.
The
anti-corruption agencies like Economic and Financial Crimes Commission (EFCC)
is equally riddled with corruption, therefore, making it very difficult, if not
impossible, for government to beat corruption (FOLASADE-KOYI, et al, 2015).
Corruption has finally led Nigeria into being branded as a place of plutocrats.
According to Ego-Alowes (2015) a plutocrat is someone who trades in and or
arbitrages political privileges, rights and concessions.
He
insists that because of the ignorance of the dangers of plutocratization by
Nigerians, plutocratization alone will ensure that Nigeria never develops or is
developable. This is never far from the reality, because since the 1950s
through 2016, Nigeria remains an underdeveloped country, despite the times of
the oil boom, and this time of the oil doom.
Plutocratization
given birth to by corruption has produced many governments since 1960, and at
each martial music it has always been mismanagement, corruption, and the
government overthrown or voted out. To this extent, Ego-Alowes (2015) insists
that Nigeria is a proof of the believe that every state is as corrupt as her
plutocrats are rich (ODITTEH, 2016; TSA, 2016; ONABULE, 2016; BAYAGBOM, 2015).
Even the
civilian government that succeeded the military in 1999, despite its
desperation against corruption could not leave a legacy of transparency in
governance. For example, Marshall (2006) states: President Olusegun Obasanjo
has expressed a strong personal commitment to tackling systemic corruption in
Nigeria, and the first bill that was passed into law after he was elected into
office was The Corrupt Practices and Other Related offences Act.
Unfortunately,
the problem of corruption in Nigeria is still present, and there has not been
one high-level conviction during Obasanjo’s term as president. Also, the
privatization and commercialization of Public Enterprises (PEs) has become a
subject of probe. Most Nigerians believe that PEs such as the Nigerian
Telecommunications Limited, Power Holding Company of Nigeria, among others were
given away at ridiculously low prices and shrouded in corruption (OLUWASEGUN;
ANOFI, 2015).
According
to Nwankwo(2011) top government
officials have been otherwise accused of involvement in underhand deals in the
exercise. To this extent the Nigerian Labour Congress (NLC) has charged the
Nigerian Senate to summon the political will to ensure that all the issues of
corruption in the privatization and commercialization probe are pursued to
logical end and ensure that those indicted are brought to book.
Bringing
corrupt people to book in Nigeria is difficult because the police and other law
enforcement agencies are also corrupt. For example, according to Kunav (2005)
Nigeria is a well-known corrupt nation and its police force is specifically
corrupt with a good amount of confidence.
He
believes that those who already think that high profile corrupt cases like that
of the dismissed Inspector-General of Police, Mr. Balogun are scandalous should
sit up as they would hear and read more of such issues in the police force.
These support the views of Smith (2005a) that Sir James Robertson had
gerrymandered, cheated, perverted and, by his machinations, perpetrated one of
the most ghastly acts of infamy in British colonial history. The British legacy
of corruption in Nigeria is what the government and the people of Nigeria are
still struggling to change (UNIAMIKOGBO, 2007, OKONJO-IWEALA, 2015, NWAORGU, 2014).
2.2.
Corruption and Poverty
Corruption
contributes to governance failures and increases poverty in society. Problems
of poverty and governance are linked. According to Klugman (2002) if political
power is abused, or expressed in weak or improper ways, those with the least
power-the poor-are the most likely to suffer.
Weak governance
characterized by corruption compromises the efficient delivery of services and
benefits to those who need them most; the influence of powerful interest groups
biases policies, programmes, and spending away from the poor, and lack of
property rights, security and inability to access legal services put the poor
at disadvantage, and inhibit them from being in full-control of their lives.
In the
circumstances, poor governance generates and reinforces poverty and subverts
efforts to reduce it. Combating corruption and strengthening governance are
essential preconditions to enhancing the living standards of the poor. He
posits that the capacity of government to manage resources efficiently, and to
formulate, implement and enforce sound policies and regulations, and respect
for institutions that govern economic and social interactions are the basis of
good public sector management and crucial for poverty reduction management.
And
according to Onalo (2016) almost 95 percent of Nigerian graduates are not
employable, because of weak university system, arising from poor government
regulations of the universities and corruption. Besides the rising levels of
poverty, the rate of unemployment is on the rise, with 60 percent of the 64
percent youth population unemployed (EHIKIOYA, 2015; TAIWO-OBALONYE, 2016).
Corruption
is everywhere in Nigeria and it flows freely from the presidential villa,
through the 36 state government houses, the federal capital territory, and all
774 local government headquarters. Seriously, today, there are many corruption
cases pending before the courts or tribunals involving serving and past state
governors and Sunday others.
Recovery
of stolen money cannot be a matter of politics, but treated clearly as a matter
of criminality. Committing murder, acts of genocide, stealing the resources of
the nation are not covered by section 308 of the Constitution of the Federal
Republic of Nigeria (FAWEHINMI, 2005) Court orders like the one called
perpetual injunction, may well stall anti-corruption management in Nigeria if
not properly interpreted by the courts and legal luminaries, especially when
criminal issues are involved.
Mobilizing
about N21billion from Nigeria’s treasury for electioneering campaign in 2015,
when civil servants were owed huge salary arrears, and the economy in coma, was
nothing but corruption (HARDBALL, 2015). For effective anti-corruption
management and sustainable development agenda, it is imperative to recover such
money from the people hiding it either in bushes, farms, holes, rooftops, tank
farms, bathrooms, casinos, hotels, fish ponds, petrol service stations,
shopping malls and so on.
Nwodo
(2015) believes that the last government was corrupt. According to him;
revelations at the arms purchase probe have shown the impunity in the last PDP
administration. He feels that somebody should fight corruption and bring sanity
to government expenditure, and that Nigerians are getting it from this
government. He believes that no Nigerian should go to bed hungry and that this
country has enough resources to feed and provide the enabling environment to
achieve its desires.
But when
public resources are plundered as have been done by previous administrations,
you can see that the waste in governance has made it impossible for Nigeria to
reach its potential. For example, according to Dasuki (2015): That I am aware
in November (I cannot remember the exact date), my office requested the CBN to
exchange N10billion from the account of the Office of National Security Adviser
domiciled in CBN.
The money
was exchanged at US$47m and some Euros which I cannot remember. The exact
amount was delivered at my residence. The money was for delegates that attended
the nomination convention for the PDP Presidential Nomination. The money was
paid and sent to Hon. W. Dudafa, SSAP, Household, and ADC (C-I-C) for
distribution on the instruction of the President. Many of the cash payments
were just looted. Many people in the ruling party got huge sums of money.
In this
corruption episode involving Dasuki (2015) it was revealed that many of the
contracts were fake, many of the payments related to the 2015 presidential
elections and not for national security. According to Olanipekun (2005) to
effectively check corruption, the President needs to check the imperialism in
governance at every level. Corruption has single handedly led to the death of
countess number of projects in Nigerian.
According
to Ayodeji (2005) it is not as if corruption originated in Nigeria, or that she
is the only country where corruption is pervasive, but it is worse here because
it has been institutionalized. While Emir Sanusi believes that stealing is
corruption, the former President Jonathan is of the view that stealing is not
corruption; rather he symbolizes the common wealth of all Nigerians as yam and
the looters, as goat.
This yam
and goat mentality of a matter as serious as embezzlement of public funds gave
impetus for huge corruption in the immediate past government in Nigeria. The
watchdog agencies, including the media are messed up by Mr. Corruption in
Nigeria. The outrageous corruption issues involving the National Security
Adviser (NSA), and some media owners have demonstrated the weakness of the
watchdog.
According
to Macaulay (2015) when the media betrays its essence by taking sides with
unprogressive structures of power, it defeats the purpose of having a watchdog
in the society. He states that the allegations against some of the media chiefs
show not only the corruption influence of power but also the powerful influence
of corruption.
2.3.
Corruption and Private Sector
Failure
According
to Adewole, et al (2011) the Organized Private Sector (OPS) in Nigeria had been
infested by corruption from the 1950s when panels of inquiry were set up to
look into the operations of African Continental Bank (ACB) and National Bank of
Nigeria (NBN). Corruption in the Nigerian banking sector became worrisome
between 1954 and 1960 with allegations of questionable use of public funds by
the Eastern and Western regional governments to finance the activities of ACB
and NBN.
In this
regard, public probes were constituted to verify the allegations. The Foster
Sutton Tribunal (1962) found that the manner of injecting public funds into ACB
was shrouded in mystery. Also, the Coker Commission (1962) found that the
financial affairs of NBN did not present a very happy picture because the
various loans linked to the Action Group were not secured in any shape or form
(UGOANI, 2013).
Corruption
returned with full force in the 1990s into the Nigerian banking system leading
to the distress and liquidation of many banks from 1993 through 2011. The
matter of corruption in the banking sector reached the level that the Central
Bank of Nigeria had to inject about N678bn into the banking system to protect
deposits interests (THE GUARDIAN, 2011).
The Asset
Management Company of Nigeria (AMCON) established by the government to purchase
the nonperforming loans of the sick banks was also accused of corruption.
According to Yesufu and Itua (2015) AMCON was accused of irregularly
accumulating debts amounting to N5trillion, in excess of its N800billion debt
ceiling.
Corruption
in the banking sector has even been pushed to a higher level by the use of
banks as conduit for money laundering activities by public officers. According
to Daniel (2016) the EFCC is worried about the activities of banks in money
laundering, pointing out that what bankers call private banking has provided a
favourable window for top politicians to launder huge sums of public funds.
From this
angle, the financial system which is the oil of any economy is also weakened by
corruption, and this again provides an easy landing for governance failures,
because some governors or presidents that were impeached, convicted or even
dead, were also involved in money laundering through the banking system (ADINUBA,
2016, OKWE, 2013, OSEHOBO, 2012).
3. METHODOLOGY
3.1.
Research Design
The
exploratory research design was employed for the study. The method is concerned
with process rather than consequences, with organic wholeness rather than
independent variables, and with meanings rather than behavioural statistics (OSUALA,
2007). This method is evolutionary and historical in nature and it rarely
involves the employment of large samples or use of structured questionnaire (ASIKA,
2004, MILES; HUBERMAN, 1994).
3.2.
Sources of Data
Data were
collected through observations, interviews, books, newspapers, journals,
periodicals, government publications among others.
3.3.
Method of Data Analysis
Data were
analyzed through descriptive statistics, and result presented in tables.
4. PRESENTATION OF RESULT.
Table 1
was used to answer research question number one, as it provided reliable
evidence of mismanagement in the Nigerian public sector by public servants.
According to Semenitari (2005b) President Obasanjo was personally worried about
mismanagement in public life that he declared: “As you all know, we have put in
place a holistic economic reform agenda covering accelerated privatization,
public and civil service reforms, and a war against corruption. He admitted
that, our current political arrangement has some identical distortions, defects
and limitations that call for urgent, focused and realistic attention, hence
this initiative on political reforms”.
Table 1: Selected Pending
Mismanagement/Corruption Cases In Nigeria.
S/N |
Amount |
Brief details |
Status |
|
1 |
N |
$ |
Money laundering/bribery /
corruption involving top govt officers/Halliburton. |
Pending |
|
180m |
|||
2 |
|
7.5bn |
Tax evasion by major oil companies
(MOCs) |
Pending |
3 |
2.58trillion |
|
Mega oil subsidy scam |
Pending |
4 |
|
24.1m |
SAGEM SA, ID card scandal |
Pending |
5 |
5trn |
|
8000 abandoned FG projects as at
2014 |
Abandoned projects |
6 |
|
69bn |
Missing money from FG treasury |
Pending |
7 |
15trn |
|
Abandoned projects due to
corruption as at 2016 |
Abandoned projects |
8 |
|
11bn |
Unremitted funds to FG by MOCs |
Pending |
9 |
61.4bn |
|
Diversion of funds to NSA by
Okonjo-Iweala |
Cash looted by public servants,
others. |
10 |
|
4bn |
The Abacha case |
Recovery in progress |
11 |
3.7bn |
|
Cash diverted for personal use by
Badeh |
Pending |
Source: Author Fieldwork
(2016)
Table 2
provided the answer for research question number 2, with critical evidence that
Nigerian leaders at the highest level of governance have been involved in
corruption.
Table 2: Recovery From
The Abacha Looted Funds
S/N |
Year Recovered |
Year Expected |
Sources |
Amount ($) |
1 |
2014 |
|
Liechtenstein |
226.4m |
2 |
|
|
Luxembourg |
321m |
3 |
|
|
Jersey, UK |
313m |
4 |
|
|
USA |
167m |
Source: Author Fieldwork
(2016)
The
reform programmes in table 3 did not achieve the objectives for which they were
established. Rather, according to Tunji (2016) they were ostensibly put in
place to steal money from government treasury by corrupt public officers; in
which case, they were merely used and dumped. This is a credible evidence of
mismanagement and corruption in the public sector of the economy.
Table 3: 5 Selected
Failed Reform Programmes (1986-2000) in Nigeria
S/N |
Year |
Description |
Objectives |
Status |
Public perception of
failure |
1 |
1986 |
Directorate of Food,
Roads, and Rural Infrastructure (DFRRI) |
To help in poverty
alleviation |
Failed |
Corrupt, conduit for
siphoning public funds |
2 |
1986 |
Mass Mobilization for
Social Justice Self-Reliance and Economic Recovering (MAMSER) |
To accelerate reduction
of mass illiteracy in Nigeria |
Failed |
Corrupt, conduit for
siphoning public funds into private pockets |
3 |
1986 |
National Electoral
Commission (NEC) |
To formulate new
electoral process and give new breed politicians a chance |
Failed |
Corrupt, could not
conduct a credible election |
4 |
1986 |
Centre For Democratic
Studies (CDS) |
To impart democratic
ideas in the leaders after many years of military rule |
Failed |
No consequence |
5 |
1990 |
Peoples Bank of Nigeria
(PBN) |
To ease access to
credit for the rural and urban poor |
Failed |
Corrupt, hijacked by
powerful politicians. |
Source: Author Fieldwork
(2016)
Table 4
showed that the level of poverty remains high in Nigeria, despite numerous
poverty alleviation programmes. Corruption is responsible for the failure of
propoor programmes and has made the majority to wallow in hunger. For example,
according to Kale (2012), as at 2010, there was about 38.6 percent of food
poverty in North-Central Nigeria, 51.5 percent in North-East, 51.8 percent in
North-West, 41.0 percent in South-East. 35.5 percent in South-South and 25.4
percent in South-West. This states the reality that successive governments
since 1960 found it almost impossible to feed the citizens, while billions of
dollars are shared by corrupt individuals.
Table 4: Nigeria’s
Poverty Levels (2004 – 2011)
Poverty Measure (in %) |
2004 |
2010 |
2011 |
Relative poverty (in %) |
54.4 |
69 |
71.5 |
Absolute poverty (in %) |
54.7 |
60.9 |
61.9 |
Dollar per day (in %) |
62.8 |
61.2 |
62.8 |
Source: Fieldwork (2016)
Adapted Okafor (2014)
Table 5
explained research question number three, with substantial credible evidence
that corruption influences governance failures in Nigeria. From this
perspective, it becomes more understandable, why about 70 percent of past
administrations are today perceived as corrupt. This may also explain why about
70 percent of Nigerians live in poverty (Ugbabe, 2012, Amaize, 2016, Okafor,
2014).
Table 5: Government
Changes in Nigeria 1960-2015
S/N |
Year of change |
Change agent |
Head of government on change date |
Mode of change |
Reason of change |
Condition of head of govt after
change |
Legacy/popular opinion |
|
Positive |
Negative |
|||||||
1 |
1960 |
Independence |
Sir James Robertson |
Handover |
Independence |
Returned to UK |
Independence |
Corruption, North-South Dichotomy,
dual mandate |
2 |
1966a |
Major P.C Nzeogwu |
Sir AbubakarTafawa Balewa |
General elections |
Independence from British |
Assassinated |
Nationalism |
Corruption/ Regionalism, tribalism |
3 |
1966b |
Military |
Gen. J.T.U Aguiyi-Ironsi |
Military coup |
Unitary govt |
Assassinated |
Campaign for one Nigeria |
Unitary govt Decree No 34 |
4 |
1975 |
Gen. M Mohammed |
Gen. Yakubu Gowon |
Military coup |
Bad govt |
Deposed |
One Nigeria Creation of States
Indigenization policy |
Corruption Brutal Civil war
Reluctant to hand over power, economic mismanagement |
5 |
1976 |
Col. B. S Dimka |
Gen. M Mohammed |
Military coup |
Accusations of marginalization |
Assassinated |
Creation of States, commitment to
handover by 1979 |
The Big Purge |
6 |
1979 |
Electorate |
Gen Olusegun Obasanjo |
General elections |
Military disengagement |
Self-retirement from Army |
Surrender of Power to civilians,
UPE, OFN, Indigenization |
Corruption, FESTAC, $2.8b
allegation |
7 |
1983 |
Gen. Sani Abacha |
Alhaji Shehu Shagari |
Military coup |
Corruption in govt. |
Deposed |
New Universities, Green Revolution |
Corruption No direction, over
politics |
8 |
1985 |
Gen. Sani Abacha |
Gen. Mummadu Buhari |
Military coup |
Draconian rulership |
Deposed |
War against Indiscipline |
Trade by barter, Decree No. 2 |
9 |
1993 |
Military |
Gen Ibrahim B. Babangida |
Military |
Withdrawal from politics by
military |
Stepped aside |
Creation of States, Poverty
Reduction Programmes |
SAP, Corruption June 12 election
cancellation |
10 |
1993 |
Military |
Chief Earnest Shonekan |
Military |
Unstable. No direction |
Deposed |
None |
No direction |
11 |
1998 |
Military |
Gen. Sani Abacha |
Military |
Death of Abacha |
Died in power |
Creation of States, PTF, FEAP |
Corruption, one Million Man Match,
human right abuse, self succession plan |
12 |
1999 |
Electorate |
Gen. A. Abubakar |
Surrender of power |
Election victory |
Retired from the Army |
Release of Political Prisoners,
Surrender of Power |
Minimum wage confusion, Huge
depletion of foreign reserves |
13 |
2003 |
Electorate |
Chief O. Obasanjo |
Sworn in |
Election victory |
Sworn in for 2nd
tenure |
Debt relief, Reforms, Poverty
alleviation, Anticorruption stance. |
Corruption 3rd term
politics, distortions |
14 |
2007 |
Electorate |
Chief O. Obasanjo |
Handed over to Yar’ Adua |
Election victory |
Retired to Ota farms / politics |
Debt relief, Reforms, Poverty
alleviation, Anticorruption stance. |
Corruption 3rd term
politics distortions, |
15 |
2010 |
National Assembly |
Alhaji Umaru Yar’Adua |
Doctrine of necessity |
Death of Yar’Adua |
Died in power |
Government of national unity.
Equity |
Leniency with criminal militancy,
no control over official corruption |
16 |
2011 |
Electorate |
Dr. Goodluck Jonathan |
Sworn in |
Election victory |
Sworn in to complete 2nd
tenure from Yar’Adua’s presidency |
Approval of more universities,
Unity in diversity |
Corruption, tenure politics |
17 |
2015 |
Electorate |
Dr. Goodluck Jonathan |
Handed over to Buhari |
Election defeat. |
Voted out of power |
Approval of more universities,
Unity in diversity |
Corruption, tenure politics, Boko
Haram, Chibok Girls’ Seizure |
Source: Author Fieldwork
(2016).
Figure 1
showed Sir Robertson and foremost nationalists of Dr. Azikiwe, Chief Awolowo
and Sir. Bello in discussions about Nigeria’s Independence. No doubt, Sir
Robertson, a very brilliant representative of the Queen of Great Britain and
Northern Ireland, and as Governor-General of Nigeria, who was very clear about
the dual mandate, put the final touch to all matters of Nigeria’s Independence
1960
Figure 1: The
Nationalists and The Umpire.
Source: Author Fieldwork
(2016) Adapted from Tell, March 7, (2005, p. 43).
Table 6
showed only one little case of how public funds were looted at the presidency
by public officers and their cronies. According to Alli (2015) “sometimes,
there were accompanying documents, most times, there was nothing except account
details of contractors”.
These
people looted the billions of naira that were allocated for the fight against
insurgency, causing many innocent and patriotic soldiers to die needlessly and
they are not remorseful. The immediate past government shared N600million to
six chairmen of the contact and mobilization committee the 2015 general
elections, N300million to an account given by a former party chairman,
N200million to a state governorship candidate and N100million to a former PDP
governor, so as to win the last general elections (ADEYEMI, 2015).
Government
should aim at recovering these monies, because immunity does not apply to
criminal investigation, and stealing is not an example of good governance, but
a clear case of corruption in governance. According to Fawehinmi (2005) no
governor, no deputy governor, no president or vice president is immune from
criminal investigation. So, when you plead section 308, do not include criminal
investigation. Sharing of public funds as briefly described in table 6 greatly
undermines the credibility of governance.
Table 6: Corrupt Sharing
of Public Money At The Presidency (2015)
S/N |
Name of Beneficiaries |
Amount |
|
|
$ |
||
1 |
Jabbama Ada Global Ltd |
400million |
|
2 |
R. R Hospital |
750million |
|
3 |
Barr. I. M Bala |
150million |
|
4 |
African Cable TV |
350million |
|
5 |
Nigerian Defence Academy |
159million |
|
6 |
B. B |
350million |
|
7 |
Abuja EDC |
125million |
|
8 |
Coscharis Motors |
119million |
|
9 |
PDP Reps |
380million |
|
10 |
Heirs BDC Limited |
751million |
|
11 |
Political Campaign |
1.5billion |
|
12 |
DAAR Communications |
2.120billion |
|
13 |
E-Force Inter-services Ltd |
|
147thousand |
Source: Author Fieldwork
(2016)
4.1.
Discussion
The
findings of the present study have demonstrated in eloquent terms that Nigeria
is riddled with mismanagement, misgovernment, distortions, defects, limitations
and corruption. The study also unveiled credible reports that corruption lies
at the heart of poverty, abandonment of projects, programmes and ultimately, governance
failures in Nigeria.
Table 1
showed a small number of corruption cases involving public servants still not
resolved. To attest to high level corruption in Nigeria, table 2 showed few
recoveries from funds looted from public treasury, table 3 was used to provide
examples of failed reform programmes in Nigeria, while table 4 demonstrated the
level of poverty in Nigeria as at 2011.
Table 5
provided critical evidence that corruption more than any other factor,
contributed to governance failures in Nigeria. Figure 1 evaluated the reckless
manner with which public funds were mismanaged in recent history. The public
perception is that some programmes were merely designed to siphon public money
into private pockets by corrupt public officials and sundry others.
This
perhaps justifies the preoccupation of the present government with the fight
against corruption. President Buhari with the active support of G7 leaders is
spending a great deal of his time chasing the monumental loot from the Nigerian
treasury spanning the years of military rule through the 16 years of civil rule
up to 2015.
The task
is heavy, because the loot is heavy. The Abacha loot alone had promoted Nigeria
to become the 4th most corrupt nation in the world. For two or three years, the
nation has been contending with the problem of over two trillion naira oil
subsidy fraud of which no public officer admits responsibility or knowledge.
The level
of mismanagement and corruption in public life in Nigeria is baffling, taking
into account the Abacha groundbreaking fraud, the crazy arms deal, the huge tax
evasion by MOCs, the railway rehabilitation fraud, among others. The report of
the former finance minister that she approved the diversion of N61.4bn to the
NSA without proper authorization and legislative appropriation negates the
principles of sound management.
This
level of mismanagement no doubt created the room for such funds needed to fight
Bokoharam to be easily relooted by politicians, business-people,
religious-people, military-people and their wives, boyfriends, girlfriends,
in-laws, comrades, touts, agents, governors, militants, ministers, and sundry
others in society.
This
awful situation would have been avoided if good management was exercised over
the funds recovered from the Abacha loot. If the British tried to create a
conservative middle class, the successive governments succeeded in eliminating
the middle class, and instead created two extreme classes: The plutocrats and
the paupers.
This type
of situation may be responsible for the subsisting militancy and Bokoharam
phenomenon in Nigeria. The plutocrats are enjoying their loot, while the
paupers are suffering. For example, the ex-petroleum minister who was in charge
of almost 95 percent of the country’s revenue is now facing multiple charges of
mismanagement and corruption; including the one for an oil deal involving a
whopping N9trillion since 2013.
Besides
this, she had admitted before the Senate Committee on Finance in another probe
that she spent a whopping N3.5billion on kerosene subsidy without appropriation
in flagrant violation of the provisions of the 1999 constitution of the Federal
Republic of Nigeria. In 2014, the House of Representatives also ordered an
investigation of an alleged squandering of billions of Naira from government
funds by the former petroleum minister on the maintenance of a private jet.
The probe
was instituted based on reliable evidence, and it was estimated that she
squandered about N130m monthly to maintain the jet, solely for her personal
needs and those of her immediate family. According to Emewu (2015) the
ex-petroleum minister was equally involved in a N70m donation to her political
party at the time she was accused of $20bn theft, the sum which Price Water
House, Coopers, reported missing from the account of the NNPC, under her watch.
This is just a single case of what happens in other MDAs in Nigeria.
Even PEs
like NITEL the PHCN, among others, were dispensed with on less than transparent
conditions, and in manners shrouded in corruption. The result of this study
supports the works of previous researchers like Stapenhurst and Sedigh (1999).
Adebimpe (2011) Adewole, et al (2011), Nna, et al (2010) among others, that
corruption leads to mismanagement, misgovernment, poverty and ultimately
undermines the legitimacy of government.
4.2.
Recommendations
i. Government should at all times ensure to
exercise proper control over the activities of its appointees, to avoid the
abuse of their official discretion, as is evident today.
ii. The matter of abandoned projects all over the
country worth about N15trillion is on the high side. Efforts should focus
towards completing them to make life more enjoyable for the people.
iii. Curbing squandermania by public servants needs
to be addressed before the country is liquidated. A situation where a public
officer flies in a private jet to his or her village meetings, funerals, among
others is absurd and unacceptable.
iv. The issues involved in the sale of the national
telecommunications giant, NITEL, that is shrouded in corruption lingers on
without end. The government should take necessary steps to settle the issues in
the most equitable manner.
v. From the benefit of this study, it is no
longer in doubt that corruption lies at the heart of governance failures in
Nigeria. It is therefore necessary for political leaders to exercise necessary
care to avoid the past mistakes, so as to redeem the image of Nigeria and
Nigerians from public opprobrium.
vi. The judiciary and legal scholars should work
together and make a clear prouncement on whether any Nigerian is immune from
criminal investigation in view of section 308 of our Constitution. This will be
a sound starting point for the war against corruption in Nigeria.
4.3.
Scope of further study
Further
study should examine the relationship between mismanagement and militancy to
see if necessary actions may be taken to check the bad situation in Nigeria.
5. CONCLUSION
It was
established through credible reports that Nigeria has been drenched in
corruption since the colonial days. This strong root is perhaps responsible for
the time it is taking the nation to win the war against corruption.
Mismanagement, misgovernment and corruption can be said with a high degree of
certainty, to be responsible for frequent change of government, poverty,
projects abandonment, as well as the elimination of the middle class in
Nigeria.
Discretionary
powers breed mismanagement and corruption. Elementary knowledge of management
would suggest that public officers such as ministers, must adhere to their
discretionary approval limits, or obtain the prior approval of higher
authorities for any excesses. But it would appear that government officials
categorized recovered looted funds as free funds that could be used with a
sense of waste.
The MDAs should be the power house of administrative
efficiency in Nigeria, and Nigeria should run on the effectiveness of the MDAs,
among others. (OLAOPA, 2015). To this extent there is need for a huge dose of
political will, managerial creativity and presidential courage to call the
overzealous and corrupt officials to order.
Despite
President Obasanjo’s personal commitment to fight corruption and his usual
sagacious and dexterous comments of: “I dey kampe; I dey laugh; no shaking”;
corruption still dey kampe; and corruption still dey laugh, in Nigeria. In
Nigeria, people received bribes, and they knew they collected bribes, and they
are refunding, yet they go to court to claim innocence of corruption and people
are laughing.
The
situation where about 70 percent of past administrations are perceived as
corrupt makes the whole context laughable. Through critical descriptive
analysis, it was found that corruption is highly responsible for governance
failures in Nigeria. It was also found that there is corruption among leaders,
and that mismanagement dominated governance in Nigeria in the last decades.
This
result finds support in the works of Stapenhurst and Sedigh (1999), Adebimpe
(2011), Adewole, et al (2011), Nna, et al (2010), and the strong views of
Adeyemi (2015) among others that past mismanagement destroyed the economy. This
is the objective of the study.
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