THE IMPACT OF CORRUPTION ON NIGERIA’S ECONOMIC UNDERDEVELOPMENT

Okeniyi A. Oke
Business Services & Statistical Consulting, Plano. TX

Eugene N. Offoha, DBA, CFE, (Retd).

ABSTRACT

This study overviews the adverse impact of corruption on the economic
underdevelopment in Nigeria and offer abating strategic measures. First, this study reviews
Nigeria’s alarming emersion into high levels of systemic and pervasive corruption, illustrating
with corruption cases grounded on the fraud triangle model. In particular, the framework of fraud
triangle is used to identify factors of pressure, opportunity, and rationalization that exacerbate
Nigerian corruption and range of occurrences. The inefficiencies and ineffectiveness of antifraud
agencies, including administrative, legislative apparatus were also examined. The review process
indicate that Nigerian corruption is rampant. Eighty percent (80%) of the examined corruption
cases indicate that the Nigerian unabated corruption is due to rationalization and/or opportunism.
Whereas the Halliburton corruption case involved pressure, classic organizational culture of
compromises, lack of supportive transparent systems and capabilities (including ineffective
judicial prosecutions) resulted in no consequence or (0) zero jail time, even for serious, egregious
offenses to perpetuate corruption. Finally, the study addresses strategies such as: education,
transformative leadership, oversight, technological fixes, regulation, and value orientation, to
mitigate fraud and corruption in Nigeria.
Keywords: Nigeria, corruption, fraud triangle, value reorientation, underdevelopment, corruption cases, policy
strategies