THE IMPACT OF CORRUPTION ON NIGERIA'S SUSTAINABLE ECONOMIC DEVELOPMENT: AN EXAMINATION OF THE MINISTRY OF HUMANITARIAN AFFAIRS (2019–2024)

CHAPTER ONE INTRODUCTION 1.1 Background to the Study Corruption, generally defined as the misuse of public power for private gain, is a global challenge that undermines economic stability, social justice, and governance frameworks. In Nigeria, corruption has become a deeply entrenched problem permeating political, economic, and social systems. Since Nigeria’s independence in 1960, the country has struggled to achieve lasting economic development largely due to the persistent influence of corruption in public management and allocation of resources (Adebayo & Ojo, 2023). Nigeria’s wealth of natural resources, particularly oil, has served as both an advantage and a liability, with poor resource management significantly encouraging corrupt practices (Akanbi & Agunbiade, 2022). The increasing prevalence of corruption in Nigeria is alarming. Although corruption is a global concern, it has escalated to alarming levels in Nigeria, affecting various branches and tiers of government as well as the private sector. It is widely regarded as a major impediment to national progress. The scale of corruption in Nigeria poses a significant threat to effective governance, the democratic process, and equitable business activities in a competitive environment (Okoye, 2021). Studies have shown that poor governance challenges in Nigeria are frequently linked to weak leadership and corruption (Okoye, 2021). However, as emphasized by the World Bank (2022), corruption’s roots are connected to the unique political and economic conditions of each country, making its causes as complex as the multiple forms corruption takes. Corruption substantially hinders Nigeria’s economic advancement by diverting public funds originally meant for infrastructure and critical services into private hands. For example, billions of dollars have been lost to corruption in Nigeria’s oil sector alone, which has weakened the country’s financial stability and delayed development efforts (Transparency International, 2022). Additionally, corruption diminishes the efficiency of the public sector, resulting in poorly executed projects, deteriorating infrastructure, and insufficient healthcare and educational services, all of which worsen poverty and inequality (Ojo, 2020). Moreover, corruption discourages both foreign and local investment, as Nigeria is perceived as a risky place to do business. According to the 2022 Corruption Perceptions Index, Nigeria ranked 150th out of 180 countries, reflecting a significant lack of trust in its governance and economic systems (Transparency International, 2022). This deficit of confidence stifles private sector growth and leads to reduced job creation, further exacerbating unemployment and economic stagnation (Okoye, 2021). Over time, Nigeria has established various anti-corruption bodies and initiatives, such as the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC). While these institutions have made notable progress, their effectiveness has been limited by political interference, weak enforcement, and systemic challenges like judicial inefficiencies (Ibrahim & Lawal, 2020). In addition, the whistleblower policy introduced in 2016 aimed to encourage citizens to report corrupt activities; however, it has faced problems related to poor implementation and insufficient protection for whistleblowers (Adesina, 2021). Consequently, this study seeks to explore the impact of corruption on Nigeria's sustainable economic development: an examination of the ministry of humanitarian affairs (2019–2024). 1.2 Statement of the Problem Corruption is among Nigeria’s most pervasive and persistent challenges, significantly obstructing sustainable economic development and eroding public trust in government institutions. Despite numerous anti-corruption initiatives, Nigeria continues to rank poorly on international corruption indices, being placed 150th out of 180 countries in the 2022 Corruption Perceptions Index (Transparency International, 2022). Corruption affects all sectors, including public administration, oil and gas, healthcare, and education, leading to the misallocation of resources and worsening poverty levels. The Nigerian economy, heavily reliant on oil revenues, has been adversely affected by the diversion of funds meant for development projects, resulting in inadequate public services, poor infrastructure, and slowed economic progress (Adebayo & Ojo, 2023). For instance, corrupt practices in public procurement and government contracting reduce the funds available for essential expenditures in social welfare, health, and education, thereby hampering efforts to achieve the Sustainable Development Goals (SDGs). Corruption also undermines investor confidence, discouraging both foreign and domestic investments critical for economic diversification and sustainable growth (Okoye, 2021). This creates a vicious cycle of economic instability and underdevelopment, marked by persistently high unemployment rates and increasing income inequality. Therefore, tackling corruption is crucial for Nigeria to break free from this cycle of poverty and economic stagnation. Yet, corruption persists due to weak enforcement, political interference, and lack of adequate public accountability, despite the government’s establishment of bodies like the ICPC and EFCC (Ibrahim & Lawal, 2020). This research aims to analyze the multifaceted impacts of corruption on Nigeria’s sustainable economic development, underscoring the urgent need for comprehensive reforms to address this endemic problem. Hence, the study focuses on the impact of corruption on Nigeria's sustainable economic development: an examination of the ministry of humanitarian affairs (2019–2024). 1.3 Objectives of the Study The primary objective of this research is to examine the impact of corruption on Nigeria's sustainable economic development, specifically through a study of the Ministry of Humanitarian Affairs during 2019-2024. The specific objectives include: i. To identify the factors that contribute to the emergence of corruption within the Nigeria Ministry of Humanitarian Affairs between 2019 and 2024. ii. To evaluate the effects of corruption on the efficiency of the public sector and resource allocation within the Nigeria Ministry of Humanitarian Affairs during the same period. iii. To investigate how corruption impacts Nigeria’s sustainable economic development overall. iv. To propose recommendations aimed at reducing corruption and promoting sustainable economic growth in Nigeria. 1.4 Research Questions This study is guided by the following questions: i. What factors contribute to the emergence of corruption in the Nigeria Ministry of Humanitarian Affairs from 2019 to 2024? ii. How does corruption affect the efficiency of the public sector and resource distribution within the Nigeria Ministry of Humanitarian Affairs during this period? iii. What impact does corruption have on the sustainable economic development of Nigeria? iv. What recommendations can be made to mitigate corruption and enhance sustainable economic development in Nigeria? 1.5 Research Hypotheses To further direct the study, the following hypotheses are formulated: H0: Corruption in Nigeria does not constitute a threat to the country’s sustainable economic development. Ha: Corruption in Nigeria poses a significant threat to sustainable economic development. 1.6 Scope of the Study This study concentrates on corruption in Nigeria as a threat to sustainable economic development, with a focus on the Ministry of Humanitarian Affairs from 2019 to 2024. Empirically, the research will examine the factors contributing to corruption in this ministry, assess its effects on public sector efficiency and resource allocation, investigate its impact on Nigeria’s sustainable development, and provide suggestions for mitigating corruption. Geographically, the study is limited to activities within the Ministry of Humanitarian Affairs during the 2019-2024 period. 1.7 Significance of the Study This study holds significant value for policymakers by identifying critical areas where corruption obstructs sustainable development and offering evidence-based recommendations to strengthen anti-corruption measures. This can aid government agencies and policymakers in devising more effective strategies to combat corruption. The findings will also contribute meaningfully to academic discourse, enriching existing literature, expanding library resources, and serving as a reference for future research. 1.8 Research Methodology The research methodology section outlines the various methods and tools the researcher will employ to conduct the study and collect data. Among the several appropriate methodologies for addressing the research questions, this study will adopt a historical research approach coupled with descriptive data collection methods. This will involve gathering information from secondary sources such as books, journal articles, magazines, internet publications, international and national conference proceedings, and both published and unpublished materials. 1.9 Definitions of Terms Corruption: The misuse of public power for personal advantage, often involving bribery, embezzlement, or other unethical acts that undermine public trust and governance. Sustainable Economic Development: Economic growth that satisfies present needs without compromising the ability of future generations to meet their needs, encompassing social justice, environmental protection, and economic stability. Misappropriation: The unauthorized or improper use of resources, particularly public funds, for personal or unintended purposes. Governance: The processes and structures through which a society or organization is managed, including decision-making, allocation of resources, and mechanisms for accountability. Transparency: The availability and accessibility of information regarding government or organizational activities to promote accountability and public confidence. Accountability: The responsibility of individuals, organizations, or governments to accept and explain their actions to stakeholders. Anti-Corruption Agencies: Institutions established to combat corruption through investigation, prosecution, and public education, such as Nigeria’s Economic and Financial Crimes Commission (EFCC) and Independent Corrupt Practices and Other Related Offences Commission (ICPC).