Economic Reforms and Corruption in Nigeria: Implications for Good Governance

Abstract

One of the major reasons for economic reforms in Nigeria introduced in 1986 was to regenerate the economy through structural reforms that would curtail corruption in the public sector, free public resources for investment in critical sectors of the economy there by enhancing sustainable economic growth. By the mid 1980s, corruption was not only rife in Nigeria especially in the public sector; it was preponderant and viciously deleterious to governance and development outcomes. With State Owned Enterprises (SOEs) corruption was nearly synonymous with their existence and operation. The introduction of structural adjustment reforms through privatization was among other objectives to eliminate official malfeasance, restore efficiency, create jobs and enhance economic growth and recovery. After more than two decades of economic reforms, corruption has not only remained endemic and institutionalized, it is assuming a phenomenal character for reasons of entrenched weak political will, elite greed and institutional weakness. Political institutions and anti-corruption agencies require an independent capacity to erect and sustain a culture of systemic principles and effectiveness in order to enhance good governance as positive ends of economic reforms.