Corruption and Challenges of Sustainable Inclusive Growth in Nigeria

Abstract

The paper examines Corruption and Challenges of Sustainable Inclusive Growth in Nigeria. The paper adopts the theory of two publics as its framework of analysis. The theory explains the prevalence of corruption between and among public servants in Nigeria, which affects the attainment of sustainable inclusive growth. Corruption in Nigeria is caused by lack of accountability, transparency and good governance; poor leadership; monopolization of power by government officials; the utilization of discretionary powers by politicians and bureaucrats over the formulation and implementation of the rules and regulations and allocations of projects. Using system equation ordered by variables the paper revealed an indirect link between corruption and poverty and a significant negative impact on the attainment of inclusive growth in Nigeria. The test of causality using Wald test also revealed that there is a unidirectional causality running from corruption to inclusive growth. The paper therefore, argues that corruption challenges the attainment of sustainable inclusive growth in the country both in the short run and long run. This is because it drains and cripples the available national income for productive activities; discourages savings habit and increases debt burden in the country; hinders the Nigerian state to allocate resources for distributive purposes among the constituent units thereby; intensifies level of inequality and abject poverty; generates infrastructural and social services decay; and a general decline in the living standard of the ordinary Nigerian citizens.

Key Words: Corruption, inclusive growth, System equation, Nigeria