Corruption's Impact on Transportation and Economic Growth in Nigeria

This report investigates the detrimental effects of corruption on Nigeria's transportation infrastructure and its subsequent impact on economic growth under democratic rule. The study examines various forms of corruption, including bribery and embezzlement, and their influence on the transportation sector, encompassing roads, railways, and ports. It explores the link between transportation efficiency and economic development, highlighting how corruption leads to substandard infrastructure, delays, and increased costs, ultimately hindering Nigeria's GDP growth. The research employs a secondary data content analysis, drawing from sources like the World Bank and other researchers, to assess the scope of the problem. It analyzes specific cases such as the Trans-Niger Delta highway and the Port Harcourt monorail, illustrating how corruption results in poor infrastructure and wasted resources. The study concludes that unless corruption is effectively addressed, Nigeria will continue to face challenges in its transportation sector, impeding its economic progress.

Running head: IMPACTS OF NIGERIAN CORRUPTION 1
Impact of Corruption on Transportation and Economic Growth in Nigeria under Democratic
Dispensation
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IMPACTS OF NIGERIAN CORRUPTION 2
1.0 Introduction
Corruption refers to a situation whereby resources and power are misused for private or
rather selfish gains by those entrusted to manipulate them (Gardiner, 2017). Corruption is usually
associated with misappropriation of public resources made for developing various economic
sectors. There are various types of corruption which include bribery, fraud, extortion,
embezzlement, collusion, and facilitation payment. Transportation is closely linked to economic
growth since it is the main instigator of a nation’s economic development. Hence a nation
experiencing poor transportation consequently experiences a sluggish economic growth.
Corruption in Nigeria has raised eyebrows as it has been increasing with time. According to the
Transparency International Report, Nigeria has retained its corruption score with no
improvement or progress (Alabidun, 2019). The Nigerian government has dedicated efforts
towards reducing corruption through laws’ enactment and integrity enforcement systems in vain.
During the year 2012, Nigeria was estimated to have lost $400 billion since independence
(Agbiboa, 2012). Previously, corruption had been reduced by various machineries put in place by
the past Nigerian administrations to curtail it. Presently, various institutions have been
established in the nation to eradicate corruption such as the EFCC (“Economic and Financial
Crime Commission”) and ICPC (“Independent Corrupt Practices and Related Offences
Commission”) with little impact. Corruption on Nigerian transportation has led to sluggish
development of the nation’s transport sector and this has highly reduced the nation’s economic
development.
1.1 Statement of the research problem

IMPACTS OF NIGERIAN CORRUPTION 3
This research seeks to investigate the impacts of corruption on transportation and
economic growth in the nation of Nigeria under democratic dispensation.
1.2 Research objectives
The major objective of the study is to access the impacts of corruption on transportation
and economic growth in Nigeria under democratic dispensation. Other objectives include
accessing the link between transportation and economic growth in Nigeria and investigating the
infrastructure network in Nigeria.
1.3 Research questions
The research questions to be addressed are:
i. What are the impacts of corruption on transportation and economic growth in Nigeria?
ii. What is the link between transportation and economic growth in Nigeria?
iii. Is the Nigerian infrastructure well developed and properly maintained?
1.4 Research hypotheses
The research will seek to hypothesize whether corruption on transportation impacts
Nigerian economic growth as the alternative hypothesis or whether corruption on transportation
does not impact Nigerian economic growth as the null hypothesis.
1.5 Scope and limitations of the study
The study will be limited to Nigerian railway and road transport. It will evaluate how
corruption impacts these sectors and consequently the economic growth of Nigeria.

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1.6 Relevance of the study
The study is relevant in that it will use data from the World Bank and works of other peer
viewed researchers. All these are credible sources of information related to the subject of the
research study.
1.7 Organization of the study
The study will use data obtained from World Bank and individuals such as Turloch
Mooney who investigated the cases of corruption on Nigerian ports and the suggested measures
by the Nigerian government to curb the menace, Ubi and Effion who investigated Nigerian
corruption and infrastructural decay and Matthew Page who investigated the new taxonomy for
Nigerian corruption among others.
2.0 Literature Review
Corruption involves acquiring power or securing wealth illegally at the expense of the
public. According to the World Bank studies estimate corruption to be over $1 trillion every
year. This roughly accounts for about 12 percent of developing nations such as Nigeria and
Kenya. The impact of corruption on Nigerian transportation and economic growth has been
discussed by referring to various researches concerning the two issues which are closely linked.
Corruption in Nigerian transportation leads to inefficiency in production for many
companies (Akinwale, 2010). Corruption in Nigeria has led to embezzlement of funds made for
the improvement of infrastructure especially the transport related infrastructure such as roads,
railways and air transport. This has led to the existence of inadequate poor infrastructure around
the nations. Companies face difficulties in the transportation of raw materials as well as the

IMPACTS OF NIGERIAN CORRUPTION 5
distribution of goods and services. This reduces the efficiency of companies’ activities especially
production as raw materials may not be availed in the time leading to delays in production and
consequently the distribution of products. Inefficiency in companies’ productivity reduces the
nation’s gross domestic product hence reducing its economic growth.
According to Turloch (2017), corruption causes traffic in Nigerian ports leading to trade
inefficiencies. The Nigerian Ports Authority managing director accepted the fact that the
Nigerian port is classified among the expensive ports in the world due to its corruption and set up
measures to reduce it some of which included setting up anti-corruption office at the
headquarters of the Nigerian Ports Authority. The corruption activities of the nation’s port are
estimated to cost it more than $3 billion on a yearly basis. The illegal payments at the ports cost
more than half the cost of port’s processes for imports and exports while delays represent 70
percent of the time that is taken in conducting the processes. These corrupt activities increase the
price for imports and exports of Nigeria hence reducing their sales. They also bring about
inefficiencies in business production activities as delays result to waste of time which
inconveniencies production. This causes a reduction in the nation’s overall output hence
undermining its economic growth.
According to Matthew (2018), corruption in the Nigerian transportation infrastructure has
led to poor infrastructural facilities which are availed at higher costs. Nigerian transportation
infrastructure consists of railways, airports, and roads. Some of the notable corrupt activities in
the Nigerian transportation infrastructure include the trans-Niger Delta highway which is
currently designed to fail. The highway has been in construction for the last ten years and it is
anticipated to cost $4.5 billion or more due to mismanagement and graft. Another corrupt act is

IMPACTS OF NIGERIAN CORRUPTION 6
associated with the monorail in Port Harcourt which is 2.6 kilometer but costing $400 million.
The project was nearly completed but it was abandoned by the Rivers State governor on claims
that it was wasteful. This massive corruption in the infrastructure sector particularly the
transportation sector has highly constrained the Nigerian economic growth. This is due to the
fact that the transportation infrastructure is inadequate and the intended expansion is being at
very high costs which inure the nation’s economy. Funds which could be used to improve the
sector vastly go to unimaginable poor infrastructure hence deteriorating the nation’s economic
growth. Unless corruption is eliminated the nation will continue to experience poor
transportation infrastructure and stunted economic growth.
According to Ogbuagu, Ubi, and Effiom (2014), the decay of infrastructure in Nigeria is
resulted in corruption but not by lack of funds. Corruption in the nation leads to the award of
contracts especially relating to transportation infrastructure unfairly and this leads to constructed
of substandard transportation infrastructure at higher unnecessary costs. Constructed roads don’t
last for long due to poor maintenance in expectation of other tenders and contracts. This has led
to economic growth deterioration of Nigeria as the amount which could be directed towards
improving constructive economic activities goes to pockets of unscrupulous contractors over
time due to substandard construction activities.
3.0 Research methodology
The research method to be used in this research is the secondary data content analysis.
Data and report already collected and analyzed by various individuals and organizations about
the impact of corruption on transportation and Nigerian economic growth were reviewed. The
data and report will be obtained from World Bank and individuals such as Turloch Mooney who

IMPACTS OF NIGERIAN CORRUPTION 7
investigated the cases of corruption on Nigerian ports and the suggested measures by the
Nigerian government to curb the menace, Ubi and Effion who investigated Nigerian corruption
and infrastructural decay and and Matthew Page who investigated the new taxonomy for
Nigerian corruption among others. World Bank is a credible source of information as it provides
globally acceptable information and data. The research methodology will use data and report
from these sources as they are relevant to the subject of study and provide good responses to
research questions.
3.1 Research Design
Research design actually refers to a plan to be adopted in order to answer the formulated
research questions. The plan is implemented by the research method strategy chosen. A
combination of two crucial research designs will be used namely the descriptive and review
research designs. The descriptive research study involves case studies and surveys. For instance,
case studies of various Nigerian transportation infrastructures will be investigated to detect
corruption cases in them and their impacts on the economic growth of Nigeria. An example to be
investigated is the monorail in Port Harcourt which is 2.6 kilometers long and has been on
construction for the last 10 years. The review research design involves a literature review of past
studies on the subject matter. The chosen research designs will adequately answer the research
questions. A review of past studies on the topic will be done and then an extensive description of
the identified impacts from the review on Nigerian economic growth will be done.
3.2 Variable Selection and Justification

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The study will be carried out based on three selected and justified variables namely
corruption, transportation and economic growth both for the nation of Australia. Corruption is
the independent variable whilst transportation and economic growth are the dependent variables
whose impacts are determined by the nation’s corruption level.

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4.0 References
Agbiboa, D. E. (2012). Between corruption and development: The political economy of state
robbery in Nigeria. Journal of business ethics, 108(3), 325-345.
Akinwale, A. A. (2010). The menace of inadequate infrastructure in Nigeria. African Journal of
Science, Technology, Innovation and Development, 2(3), 207-228.
Alabidun. (2019, January 29). Transparency International Report on Corruption in Nigeria.
Retrieved from https://prnigeria.com/2019/01/29/transparency-report-corruption-nigeria/
Gardiner, J. (2017). Defining corruption. In Political Corruption(pp. 25-40). Routledge.
Matthew Page, (2018). A New Taxonomy for Corruption in Nigeria. Retrieved from
https://carnegieendowment.org/2018/07/17/new-taxonomy-for-corruption-in-nigeria-pub-
76811
Ogbuagu, U., Ubi, P., & Effiom, L. (2014). Corruption and infrastructural decay: perceptible
evidence from Nigeria. Journal of Economics and Sustainable Development, 5(10), 20-
27.
Turloch Mooney, (2017, January 19). Nigeria vows action as corruption costs port traffic.
Retrieved from https://www.joc.com/regulation-policy/transportation-
regulations/international-transportation-regulations/nigeria-vows-action-corruption-
erodes-port-traffic_20170119.html