Corruption in Nigeria is a severe and long-standing issue. In 2012, Nigeria was estimated to have lost over $400 billion to corruption since its independence. Corruption is an anti-social attitude awarding improper privileges contrary to legal and moral norms and impairs the authorities' capacity to secure the welfare of all citizens.
Nigerian politicians find themselves in a strong position of power and wealth due to their connections with the oil and gas industries in Nigeria. The sector is under the control of the state-owned company NNPC Limited. Oil and gas exports account for over 90% of all Nigerian export revenues. While many politicians own or have shares in these industries, tax revenues from the energy sector are diminished and the benefits of Nigeria's energy wealth are not evenly distributed throughout the country with Lagos State benefitting disproportionately. Oil and gas revenues, therefore, account for the vast majority of the federal budget and the salaries of government officials. Vote rigging by political parties in elections is widespread, and corruption is endemic within government. Business arrangements and family loyalties dominate governmental appointments, paving the way for politicians, officials, and their business associates, who together make up the ruling elite, to ensure that they all become wealthy through behind-the-scenes agreements and the awarding of profitable contracts to favored supporters. In 2018, many government employees received annual salaries over $1 million. Corruption runs through every level of the Nigerian government. From considerable contract fraud at the top, through petty bribery, money laundering schemes, embezzlement, and diverting salaries through ghost workers, it is estimated that corruption within the state apparatus costs the country billions of dollars annually.
History and cases
The rise of public administration and the discovery of oil and natural gas are two major events believed to have led to the sustained increase in the incidence of corrupt practices in the country.The Storey Report. The Commission of Inquiry into the administration of Lagos Town CouncilAfrica, London, April 1979, p 25
The government has made efforts to minimize corruption through the enactment of laws and the enforcement of integrity systems, but with little success.
Greed, ostentatious lifestyle, customs, and people's attitudes are believed to have led to corruption. Another root cause is tribalism. Friends and kinsmen seeking favor from officials can impose strains on the ethical disposition of the official as these kinsmen see government officials as holding avenues for their survival and gain.
Pre-Independence and the First Republic Corruption, though prevalent, was kept at manageable levels during the First Republic.Chinua Achebe. No Longer at Ease New York, 1960Chinua Achebe, A Man of the People, New York, 1966 However, the cases of corruption during the period were sometimes clouded by political infighting. Azikiwe was the first major political figure investigated for questionable practices. In 1944, a firm belonging to Azikiwe and his family bought a bank in Lagos. The bank was procured to strengthen local control of the financial industry. However, a report on transactions conducted by the bank showed that However, a report on transactions conducted by the bank showed that, although Azikiwe had resigned as chairman of the bank, the current chairman was acting on his behalf. The report wrote that most of the paid-up capital of the African Continental Bank was from the Eastern Regional Financial Corporation. In western Nigeria, politician Adegoke Adelabu was investigated following charges of political corruption leveled against him by the opposition. In the Northern region, against the backdrop of corruption allegations leveled against some native authority officials in Borno. The Northern Government enacted the Customary Presents order to forestall any further breach of regulations. Later on, the British administration was accused of corrupt practices in the results of elections which enthroned a Fulani political leadership in Kano, when reports linking the British authorities to electoral irregularities were discovered.Robert L. Tignor. Political Corruption in Nigeria before Independence, The Journal of Modern African Studies > Vol. 31, No. 2 (Jun. 1993)
Gowon administration (August 1966 – July 1975) Corruption, for most of Yakubu Gowon's administration, was kept away from public view until 1975. However, informed officials voiced their concerns. Critics said Gowon's governors acted like lords overseeing their personal fiefdom. He was viewed as timid and faced with corrupt elements in his government.
In 1975, corruption was a scandal surrounding the importation of cement that engulfed many officials of the defense ministry and the Central Bank of Nigeria. Officials were later accused of falsifying ship manifestos and inflating the amount of cement to be purchased.Turner. The Nigerian Cement Racket, Africa Guide, 1976 Pg 6
During the Gowon administration, two individuals from the middle belt of the country were accused of corruption. The Nigerian government controlled the newspapers, so the Daily Times and the New Nigerian gave great publicity to denunciations of the administration of Gomwalk and Federal Commissioner Joseph Tarka by the two critics — a situation that may signal a cause for exigent action on corruption.Keith Panter-Brick. Soldiers and Oil: The Political Transformation of Nigeria, Pg70
Murtala administration (1975 – February 1976) In 1975, the administration of Murtala Mohammed made reformist changes. After a military coup brought it to power, the new government sacked a large number of prior government officials and civil servants, many of whom had been criticized for the misuse of power they wielded under the largely uneducated military of Gowon.Olajide Aluko. Nigeria and Britain after Gowon, African Affairs. Vol. 76, No. 304 Jul. 1977
Obasanjo administration (February 1976 – September 1979) The first administration of Olusegun Obasanjo was a continuation of the Murtala Mohammed administration and was focused on completing the transition program to democracy, as well as implementing the national development plans. Major projects including building new refineries, pipelines, expanding the national shipping and airlines as well as hosting FESTAC were done during this administration. Several of these national projects were conduits to distribute favors and enrich connected politicians. The famous Afrobeat musician, Fela Kuti, sang about various major scandals involving the international telecommunication firm ITT led by Chief MKO Abiola in Nigeria, which the then head of state, Gen Olusegun Obasanjo, was associated with. In addition to this, the Operation Feed the Nation Program, and the associated land grab under the Land Use Decree implemented by the then head of state were used as conduits to reward cronies, and his now-famous Otta Farm Nigeria (OFN) was supposedly a project borne out of this scandal.
Shagari administration (October 1979 – December 1983) Corruption was deemed pervasive during the administration of Shehu Shagari. A few federal buildings mysteriously caught fire after investigators started to probe the finances of the officials working in the buildings.Leon Dash, Mysterious Fires Plague Nigerian Investigations, The Washington Post, February 27, 1983, In late 1985, investigations into the collapse of the defunct Johnson Mathey Bank of London shed light on some of the abuses carried out during the Second Republic. The bank acted as a conduit to transfer hard currency for some party members in Nigeria. A few leading officials and politicians had amassed large amounts of money. They sought to transfer the money out of the country with the help of Asian importers by issuing import licenses."British banks linked to import swindles", The Globe and Mail (Canada), December 3, 1985,
In 1981, a rice shortage led to accusations of corruption against the NPN government. Shortages and subsequent allegations were precipitated by protectionism. After its election, the Nigerian government decided to protect local rice farmers from imported commodities. A licensing system was created to limit rice imports. However, accusations of favoritism and government-supported speculation were leveled against many officials.Juan de Onis, "Rice Shortage in Nigeria Brings Charges of Corruption", The New York Times, January 18, 1981.
Buhari administration (December 1983 – August 1985) In 1985, a cross-section of politicians was convicted of corrupt practices under the government of General Muhammadu Buhari, but the administration itself was only involved in a few instances of lapsed ethical judgment. Some cite the suitcases scandal, which coincidentally involved then-customs leader Atiku Abubakar, who later became vice president in 1999 and was indicted for various acts of corruption. "The 53 suitcases saga arose in 1984 during the currency change exercise ordered by the Buhari junta when it ordered that every case arriving in the country should be inspected irrespective of the status of the person behind such. The 53 suitcases were, however, ferried through the Murtala Muhammed Airport without a customs check by soldiers allegedly at the behest of Major Mustapha Jokolo, the then aide-de-camp to Gen. Buhari. Atiku was at that time the Area Comptroller of Customs in charge of the Murtala Muhammed Airport."
Babangida administration (August 1985 – August 1993) The regime of General Ibrahim Babangida, or IBB, has been seen as the body that legalized corruption. His administration refused to give an account of the Gulf War windfall, estimated to be $12.4 billion. He annulled the freest and fairest election in the history of Nigeria on June 12, 1993. He lives in a very luxurious mansion in his home state of Niger.
During General Babangida's tenure, corruption became a state policy. He routinely disbursed vehicles and cash gifts to people to earn loyalty, and the discipline of the military force eroded. The term "IBB Boys" emerged, meaning fronts for the head of state in the business realm, someone who will transact dirty deals from drug dealing to money laundering.
General Ibrahim Babangida used various government privatization initiatives to reward friends and cronies, which eventually gave rise to the current class of nouveau riche in Nigeria. From banking to oil and import licenses, IBB used these favors to raise cash for himself and his family and is regarded as one of the richest ex-rulers of Nigeria supposedly with significant investment in Globacom—one of the largest telecom operators in Nigeria, regarded as a front for his empire.
Abacha administration (Nov 1993 – June 1998) The death of general Sani Abacha revealed the global nature of graft. French investigations of bribes paid to government officials to ease the award of a gas plant construction in Nigeria revealed the level of official graft in the country. The investigations led to the freezing of accounts containing about $100 million United States dollars.Hector Igbikiowubo, "TSKJ Saga: Swiss Govt Freezes $ 100M Accounts", Vanguard, Nigeria, December 6, 2004,
In 2000, two years after his death, a Swiss Banking Commission report indicted Swiss banks for failing to follow the compliance process when they allowed Abacha's family and friends access to his accounts and to deposit amounts totaling $600 million US dollars into them. The same year, a total of more than $1 billion US dollars was found in various accounts throughout Europe.David Pallister, "Comment & Analysis: Pennies from heaven: Many of Nigeria's missing millions were laundered through greedy banks in London", The Guardian (London), September 7, 2000,
Abdusalami administration (June 1998 – May 1999)