Corruption can be defined as the abuse of entrusted power for private gain. Corruption erodes trust, weakens democracy, hampers economic development, and further exacerbates inequality, poverty, social division and the environmental crisis.
Corruption is an inconsiderate attitude that awards improper privileges contrary to legal and moral norms, impairing the authorities’ capacity to secure the welfare of all citizens. Corruption in Nigeria is a constant phenomenon. In 2012, Nigeria was estimated to have lost over $400 billion to corruption since its independence.
Nigerian politicians find themselves in a strong position of power and wealth due to their connections with the oil and gas industries in Nigeria. These gas industries are under the control of the state-owned company Nigerian National Petroleum Corporation (NNPC) Limited.
According to research, Oil and gas exports account for over 90% of all Nigerian export revenues. While many politicians own or hold 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 benefiting disproportionately. Oil and gas revenues, therefore, account for a chunk of the federal budget and the salaries of government officials.
In the political arena, vote rigging by political parties in elections is widespread, and corruption is endemic within the government. Business arrangements and family loyalties dominate governmental appointments, paving the way for politicians, officials, and their business associates, who together form the ruling elite.
This elite ensures that they all become wealthy through behind-the-scenes agreements and the awarding of profitable contracts to favoured 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 seizing salaries from fake 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 Nigeria, the largest and fastest-growing economy in Africa.
The government has made efforts to minimise corruption through the enactment of laws and the enforcement of integrity systems but with limited success.
Greed, ostentatious lifestyle, customs, and people’s attitudes are believed to have led to corruption. Another root cause is tribalism. Friends and relatives seeking favours from officials can strain the official’s ethical disposition, as these relatives view 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. However, the cases of corruption during the period were sometimes clouded by political infighting.
Dr Nnamdi BenjaminAzikwe was the first prominent political figure investigated for questionable practices. The record has it that in 1944, a firm belonging to Azikiwe and their family bought a bank in Lagos. The bank was procured to strengthen local control of the financial industry.
However, a report about transactions carried out by the bank showed though Azikiwe had resigned as chairman of the bank, the current chairman was an agent of his. The report wrote that most of the paid-up capital of the then-African Continental Bank was from the Eastern Regional Financial Corporation.
In Western Nigeria, politician Adegoke Adelabu was investigated following charges of political corruption levelled against him by the opposition.
In the Northern Region, against the backdrop of corruption allegations levelled against some native authority officials in Borno. The Northern Government enacted the Customary Presents order to forestall any further breach of regulations.
Later on, it was the British administration that was accused of corrupt practices in the election results, which led to the enthronement of a Kano political leadership; reports later linking the British authorities to electoral irregularities were uncovered.
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 fiefdom. He was viewed as timid and faced corruption within his government.
In 1975, a scandal surrounding the importation of cement engulfed many officials of the Defence Ministry and the Central Bank of Nigeria. Officials were later accused of falsifying ship manifestos and inflating the amount of cement to be purchased.
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.
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 criticised for the misuse of power they wielded under Gowon’s largely uneducated military.
Corruption is an inconsiderate attitude that awards improper privileges contrary to legal and moral norms, impairing the authorities’ capacity to secure the welfare of all citizens. Corruption in Nigeria is a constant phenomenon. In 2012, Nigeria was estimated to have lost over $400 billion to corruption since its independence.
Nigerian politicians find themselves in a strong position of power and wealth due to their connections with the oil and gas industries in Nigeria. These gas industries are under the control of the state-owned company Nigerian National Petroleum Corporation (NNPC) Limited.
According to research, Oil and gas exports account for over 90% of all Nigerian export revenues. While many politicians own or hold 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 benefiting disproportionately. Oil and gas revenues, therefore, account for a chunk of the federal budget and the salaries of government officials.
In the political arena, vote rigging by political parties in elections is widespread, and corruption is endemic within the government. Business arrangements and family loyalties dominate governmental appointments, paving the way for politicians, officials, and their business associates, who together form the ruling elite. This elite ensures that they all become wealthy through behind-the-scenes agreements and the awarding of profitable contracts to favoured 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 seizing salaries from fake workers, it is estimated that corruption within the state apparatus costs the country billions of dollars annually.
Obasanjo administration (February 1976 – September 1979)
The first administration of Olusegun Obasanjo was a continuation of the Murtala Mohammed administration. It was focused on completing the transition programme to democracy, as well as implementing the national development plans.
Major projects, including the construction of new refineries and pipelines, the expansion of national shipping and airlines, and the hosting of the Festival of Arts and Culture (FESTAC) in 1977, were undertaken during this administration. Several of these national projects were conduits to distribute favours and enrich connected politicians.
The late Afrobeat musician Fela Kuti sang variously about 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 Programme and the associated land grab under the Land Use Decree, implemented by the then-head of state, were used as conduits to reward cronies. His now-famous Otta Farm Nigeria (OFN) was supposedly a project born 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. In late 1985, investigations into the collapse of the defunct Johnson Mathey Bank of London shed light on some of the abuses carried on 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.
In 1981, a rice shortage led to accusations of corruption against the National Party of Nigeria (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 favouritism and government-supported speculation were levelled against many officials.
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; however, the administration itself was only involved in a few instances of questionable 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 was announced that every suitcase arriving in the country would be inspected, regardless of the status of the person behind it. The 53 suitcases were, however, ferried through the Muritala 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 Gbadamosi Babangida, fondly called IBB, has been seen as the body that legalised corruption. His administration refused to give an account of the Gulf War, estimated to be $12.4 billion. He singlehandedly rigged the only successful, fairest, and freest election in the history of Nigeria on June 12, 1993. He lives in a very superb mansion in his country home in Niger State, Nigeria.
During General Babangida’s tenure, corruption became a state policy. He regularly 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.
He utilised various government privatisation initiatives to reward friends and cronies, which eventually gave rise to the current class of parvenus in Nigeria at the time. From banking to oil and import licenses, IBB used these favours to raise cash for himself and his family and is regarded as one of the richest ex-rulers of Nigeria, allegedly 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 into bribes paid to government officials to facilitate the award of a gas plant construction contract in Nigeria revealed the extent of corruption among officials in the country. The investigations led to the freezing of accounts containing about $100 million US Dollars.
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 totalling $600 million US dollars into them. The same year, a total of over $1 billion US dollars was found in various accounts throughout Europe.
It is worth emphasising that France recently returned $150 million of Abacha’s loot to Nigeria following a prolonged legal battle.
Abdusalami administration (June 1998 – May 1999)
The government of General Abubakar Abdulsalami was brief and focused on quickly transitioning the country to democracy. Albeit, the suspicion remains that he and his inner circle acquired quite a humongous amount of wealth in such a short period, as he lives in quite an exquisite mansion of his adjacent IBBs that exceeds whatever he might have earned in legitimate income. Indeed, the major Halliburton scandal implicated his administration, and this might have financed his luxury.
Obasanjo administration (May 1999 – May 2007)
Various corruption scandals broke out under Olusegun Obasanjo’s presidency, including one with international dimensions when his vice president, Alhaji Atiku Abubakar, was caught in cahoots with a US Congressman stashing cold, hard cash (literally) in freezers.
A United States Senate report has accused Atiku Abubakar of laundering over $40 million in suspicious funds into the United States between 2000 and 2008. His partner in the lucrative effort was Jennifer Douglas, his fourth wife. Ms Douglas is sometimes known as Lady Jamilah Jennifer, Douglas E, or Jennifer Iwenjora, the name by which she was known in the 1980s when she was a reporter with the Nigeria Television Authority in Lagos.
In addition to this, the KBR and Siemens bribery scandals emerged under his administration, which were investigated by the Federal Bureau of Investigation (FBI) and led to international indictments, indicating high-level corruption within his administration. The third term saga was another major and widely acclaimed scam under him, as millions of dollars allegedly were given to the national assembly’s members.
According to reports, “while Nigeria dithered, the United States Department of Justice on January 18, 2012, announced that a Japanese construction firm, Marubeni Corporation, agreed to pay a $54.6 million criminal penalty for allegedly bribing officials of the Nigerian government to facilitate the award of the $6 billion Liquified Natural Gas (LNG) contract in Bonny, Nigeria to a multinational consortium, TSKJ”. They paid bribes to Nigerian government officials between 1995 and 2004; in violation of this, Obasanjo also had to sack his Labour Minister, Hussaini Akwanga, on allegations that he took bribes to approve a major government contract for the French electronics group.
Obasanjo also sacked and handed over the Inspector General of Police, Mr Tafa Balogun, to the EFCC on grounds of corruption to the tune of N5.7 billion. Obasanjo was able to extend his anti-corruption watchdog by arresting some of his ministers who were caught in bribery and corruption scandals.
Other acts of corruption associated with Olusegun Obasanjo included the Transcorp shares scandal, which violated the code of conduct standards for public officers, and the presidential library donations made on the eve of his exit from power, which pressured associates, including state governors, to donate to the project. It was alleged that funds were directly deducted from the source so that no governor could escape the compulsory donation.
Obasanjo was also said to have widely lobbied for his failed campaign to alter the constitution to secure a third term by actively bribing legislators, further deepening corruption at the highest levels.
Overall, energy development of non-renewable resources was “front and centre on the country’s agenda during its 33 years of military rule, especially through restructuring and creating new energy enterprises and companies” (according to Osunmuyiwa 145). When Obasanjo took office in 1999, his government acquired not only a delicate state but an unsustainable economy heavily dependent on oil and imbalanced international trade deals. Additionally, the energy crisis, which was inherited, continued due to the limited energy sector, overall governmental inefficiency, and corruption.
Umaru Musa Yar’Adua administration (May 2007 – May 2010)
The late Umaru Musa Yar’Adua’s tenure was brief. However, a significant number of corruption scandals from previous administrations came to light during his time in office, and many went uninvestigated due to a lack of political will and his poor health. Yar’Adua’s various acts of political corruption, including using his attorney-general to frustrate ongoing local and international investigations of his powerful friends, such as Governors James Ibori of Delta State, Lucky Igbinedion of Edo State, and Peter Odili of Rivers State, led to enormous losses for their states.
Additionally, Attorney General of the Federation Michael Aondoakaa was unable to obtain a conviction in Nigeria despite the UK and foreign courts successfully prosecuting Nigeria’s deeply corrupt governors from the Obasanjo era, which helped Yar’Adua emerge as president. In addition, leaked diplomatic cables revealed that the Supreme Court Justices were bribed to legitimise the corrupt elections that led to his emergence as president through widespread rigging.
Goodluck Jonathan administration (2010-2015)
Nigeria’s corruption rating, according to Transparency International (TI), improved from 143rd to 136th position in 2014. In late 2013, Nigeria’s then-Central Bank Governor, Mallam Sanusi Lamido Sanusi, informed the former President, Goodluck Ebele Jonathan, that the state oil company, the Nigeria National Petroleum Company (NNPC), had failed to remit US$20 billion in oil revenues owed to the state.
Perhaps not satisfied with Sanusi’s claim, however, Jonathan dismissed the claim and replaced Sanusi due to his mismanagement of the central bank’s budget. A Senate committee also found Sanusi’s account to be lacking in substance.
Following the conclusion of the NNPC’s account audit, it was announced in January 2015 that the NNPC’s non-remitted revenue was actually US$1.48 billion, which it was required to refund to the government. Upon the release of both the PwC and Deloitte reports by the government on the eve of its exit, it was, however, determined that nearly $20 billion was indeed missing, misappropriated, or spent without appropriation.
In addition to these, the government of Goodluck Jonathan had several running scandals, including the BMW purchase by his Aviation Minister, to the tune of 255 million naira and security contracts to militants in the Niger Delta; extensive corruption and kickbacks in the Ministry of Petroleum, the Malabu Oil International Scandal, and several scandals involving the Petroleum Ministry.
In the final days of Goodluck Jonathan’s administration, the Central Bank scandal of cash tripping with mutilated notes also broke out, revealing that in four days, 8 billion naira was stolen directly by low-level workers at the CBN. This revelation exposed a crime that was suspected to have been ongoing for years and had gone undetected until it was brought to light by a whistle-blower.
The Central Bank claims the heist undermined its monetary policy. In 2014, the United Nations Office on Drugs and Crime (UNODC) initiated a program to combat corruption in Nigeria. Thus, new allegations of corruption have begun to emerge since the departure of President Jonathan on May 29, 2015, including:
1. $2.2 billion was illegally withdrawn from Excess Crude Oil Accounts, of which $1 billion was supposedly approved by President Jonathan to fund his reelection campaign without the knowledge of the National Economic Council (NEC)made up of state governors and the president and vice president.
2. The Nigeria Extractive Industries Transparency Initiative (NEITI) discovered that $11.6 billion was missing from Nigeria’s Liquified Natural Gas Company dividend payments.
3. Between 2009 and 2012, 60 million barrels of oil, valued at $13.7 billion, were stolen under the watch of the national oil company, the Nigerian National Petroleum Corporation.
4. NEITI’s report on losses due to crude swaps, including subsidies and domestic crude allocation, from 2005 to 2012, indicates that $11.63 billion was paid to the NNPC; however, “there is no evidence of the money being remitted to the federation account.”
5. Diversion of 60% of $1 billion foreign loans obtained from the Chinese by the Ministry of Finance
6. Enormous scam in weapons and defence procurements, and misuse of three trillion naira defence budget since 2011 under the guise of fighting Boko Haram
7. Diversion of $2.2 million vaccination medicine fund by the Ministry of Health
8. Diversion of Ebola fight fund up to 1.9 bn naira
9. NIMASA fraud under investigation by the Economic and Financial Crimes Commission (EFCC), inclusive of accusation of funding the Peoples Democratic Party (PDP) and buying a small piece of land for 13 billion naira
10. Ministry of Finance led by Mrs Okonjo Iweala hurried payment of $2.2 million to health ministry contractor in disputed invoices
11. Niger Delta Development Commission (NDDC) scams and multifarious scams, including 2.7 billion naira worth of contracts that do not conform to the Public Procurement Act
12. The Police Service Commission (PSC) Scam investigated by the Independent Corrupt Practices and Other Related Offences Commission (ICPC) revealed the misappropriation of over 150 million naira related to election-related training. ICPC made refund recommendations, but many analysts indicated prosecution was more appropriate.
In conclusion, corruption continues to be a formidable barrier to Nigeria’s progress, undermining governance and stifling the potential of its vast resources. Despite various legislative efforts aimed at curbing these practices, the pervasive culture of corruption, fueled by greed, nepotism, and tribal affiliations, remains deeply entrenched within the political and economic structures of the country.
The historical context of corruption reveals a persistent cycle that not only breeds inequality and poverty but also erodes public trust in institutions. To break free from this cycle, Nigeria must foster a culture of accountability and integrity, promote transparency in governance, and ensure equitable distribution of its resources.
Only through concerted efforts can Nigeria hope to reclaim its lost revenues, restore faith in democratic processes, and pave the way for sustainable development that benefits all citizens.
