Corruption and Bribery in Nigerian Economy: An Empirical Investigation

This paper thrust is the theoretical and empirical investigation of the channel through which natural resources might affect Nigeria’s economic growth (that is an increase in rent-seeking activities). Specifically the paper has analyzed two intertwined broader issues: what factors determine the incidence of corruption or what role does the abundance of natural resources play as well as what factors that affect economic growth in Nigeria. Yet our analytical model focused on four major determinants of the extent of corruption in an economy. In the framework of the model natural resource discoveries were interpreted as technology shocks with their extent depending on the specific type of commodity considered. Empirically one of the main results was to confirm that capital-intensive natural resources are major determinant of corruption in Nigeria. Clearly both the theoretical and empirical results stress the importance of strong institutions in the wake of natural resource discoveries as a means to curb the associated negative growth effects of corruption. Indeed this fact is valid in a developing economy such as Nigeria with natural resource discoveries.