Corruption and Economic Development in Nigeria: Connections and Evidence from the Power Sector (1999- 2007)

Abstract

The concern for achieving and sustaining high level of economic development is usually a top priority issue for governments all over the world. Hence, when economic development is planned and financed, what usually determines the success rate is the extent to which the resources earmarked for projects are judiciously and accountably used to meet predetermined goals. Focusing on the power sector between 1999 and 2007, this paper highlights the linkages between corruption and economic development in Nigeria. It argues that corruption in the power sector has significantly hindered economic development in Nigeria. It has contributed to de-industrialization, compounded poverty and unemployment, and undermined human security, among others. Thus, for corruption to be drastically reduced in Nigeria, the paper recommends the introduction and strengthening of more preventive, punitive and inter-agency cooperative measures.