The Impact of Revenue from Treasury Looting on The Economic Performance of Nigeria
Keywords:
Treasury looting, Corruption, Economic performance, Nigeria, GDP growth, Foreign Direct Investment
Abstract
This study investigates the intricate relationship between revenue from treasury looting and economic performancein Nigeriafrom 1990 to 2021.The study employs secondary data which were gotten from various sources such as the Central Bank of Nigeria Statistical Bulletin and the Nigerian Bureau of Statistics. The findings of the study reveal several key insights. First, corruption through treasury lootingsignificantly negatively impacts Nigeria's economic growth. Higher perceived corruption levels are associated with lower GDPGR, highlighting the adverse effects of corruption on economic development.Second, the study identifies a positive short-term relationship between the growth rate of reported looted funds (TLFN) and GDPGR. However, this effect may not be sustainable in the long run, raising concerns about the sources and implications of such funds on the economy.The practical implications of these findings underscore the imperative of anti-corruption efforts in Nigeria. Strengthening governance, enhancing transparency, and implementing effective anti-corruption measures are essential for promoting sustainable economic growth. While short-term economic boosts from looted funds may occur, they are not a viable strategy for long-term development and can undermine trust in the economy.This study contributes to the ongoing discourse on corruption and economic performance in Nigeria and provides valuable insights for policymakers, stakeholders, and researchers. It emphasizes the need for sustained and comprehensive efforts to combat corruption and foster an environment conducive to economic prosperity in the country.
References
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2. Adegbite, E. (2018). Corruption and corporate governance in Nigeria: Perceptions, Deceptions and the Way Forward. Journal of Business Ethics, 162(3), 635-648.
3. Adeyemi, K. S., & Ahmed, A. B. (2019). Corruption and economic growth in Nigeria: A time series analysis. Cogent Economics & Finance, 7(1), 1-16.
4. Aigbokhan, B. E. (2000). Corruption and Economic Growth in Nigeria: 1986-1997. African Economic Research Consortium, Research Paper 107.
5. Ajakaiye, O., &Nabena, D. (2003). Corruption, Political Instability and Economic Development in the Economic Community of West African States (ECOWAS): Is There a Causal Relationship? African Economic Research Consortium (AERC) Research Paper 130.
6. Alao, D. (2016). Corruption in Nigeria: A Challenge to Sustainable Development in the Fourth Republic. Research Journal of Finance and Accounting, 7(5), 54-60.
7. Asongu, S. A., & Nwachukwu, J. C. (2016). The Role of Governance in Mobile Phones for Inclusive Human Development in Sub-Saharan Africa. Technovation, 55-56, 1-13.
8. Auty, R. M. (1993). Sustaining Development in Mineral Economies: The Resource Curse Thesis. Routledge.
9. Ayobamiji, Y. A., &Okunade, A. A. (2020). The Nexus Between Corruption, Economic Growth, and Income Inequality in Nigeria. Social Indicators Research, 151(2), 747-766.
10. Bardhan, P., &Mookherjee, D. (2006). Decentralization and Accountability in Infrastructure Delivery in Developing Countries. Economic Journal, 116(508), 101-127.
11. Brooks, C. (2009). Introductory econometrics for finance (2nd ed.). Cambridge University Press.
12. Campos, J. E., & Pradhan, S. (1996). The Dynamics of the Revenue-Maximizing Laffer Curve: Evidence from 66 Countries. The Economic Journal, 106(438), 471-482.
13. Chete, L. N., Adeoti, J. O., & Adeyeye, V. A. (2011). Corruption and Economic Growth in Nigeria: An Empirical Investigation. The International Journal of Business and Finance Research, 5(2), 91-104.
14. Clarke, G. R. G., Zou, H., & Xu, L. (2003). Finance and income inequality: What do the data tell us? Southern Economic Journal, 69(4), 869-887.
15. Dreher, A., & Herzfeld, T. (2005). The Economic Costs of Corruption: A Survey and New Evidence. Public Choice, 124(3-4), 271-292.
16. Edame, G. E., & Asuquo, A. I. (2019). Corruption and Agricultural Productivity in Nigeria: An Empirical Analysis. Economies, 7(3), 95.
17. Egwaikhide, F. O., &Oriakhi, D. E. (2000). Corruption and Economic Growth: Evidence from Nigeria. AERC Research Paper 105, African Economic Research Consortium.
18. Egwutuoha, I. P., & Anyanwu, J. I. (2016). Does Corruption Matter for Economic Growth in Nigeria? Journal of Economics and Development Studies, 4(2), 46-61.
19. Enyekit, E. V., & Okoye, L. U. (2018). Corruption and Sustainable Economic Development in Nigeria. International Journal of Economics, Commerce, and Management, 6(4), 1-10.
20. Ewubare, D. B., &Ebi, B. O. (2020). Corruption and Foreign Direct Investment in Nigeria: An Empirical Analysis. Heliyon, 6(10), e05291.
21. Gupta, S., de Mello, L., & Sharan, R. (2002). Corruption and Military Spending. European Journal of Political Economy, 18(4), 717-721.
22. Ikelegbe, A. (2006). The Economy of Conflict in the Oil-Rich Niger Delta Region of Nigeria. Nordic Journal of African Studies, 15(2), 208-234.
23. Isola, W. A., & Ekundayo, O. (2017). Corruption and Foreign Direct Investment: Evidence from Nigeria. International Journal of Economics, Commerce and Management, 5(7), 8-16.
24. Iwarimie-Jaja, D. (2013). Corruption and Economic Growth in Nigeria: 1986-2010. African Development Review, 25(2), 189-202.
25. Iyoha, F. O., &Oriakhi, D. E. (2010). Corruption and Economic Development of Nigeria: A Granger Causality Analysis. Journal of Economics and International Finance, 2(3), 047-056.
26. Jensen, M. C., & Meckling, W. H. (1976). Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure. Journal of Financial Economics, 3(4), 305-360.
27. Khan, M. H. (1996). A Typology of Corrupt Transactions in Developing Countries. IDS Bulletin, 27(2), 12-21.
28. Lambsdorff, J. G. (2006). Causes and Consequences of Corruption: What Do We Know from a Cross-Section of Countries? In T. Søreide (Ed.), Corruption and Development (pp. 27-55). Edward Elgar Publishing.
29. Mauro, P. (1995). Corruption and Growth. The Quarterly Journal of Economics, 110(3), 681-712.
30. Murtala, R. O. (2021). Corruption and Economic Growth in Nigeria: A Cointegration and Granger Causality Analysis. Journal of Economic Structures, 10(1), 1-16.
31. North, D. C. (1990). Institutions, Institutional Change and Economic Performance. Cambridge University Press.
32. North, D. C. (1990). Institutions, Institutional Change and Economic Performance. Cambridge University Press.
33. Nye, J. S. (1967). Corruption and Political Development: A Cost-Benefit Analysis. American Political Science Review, 61(2), 417-427.
34. Obi, C. (2019). Corruption and Development in Nigeria: A Review of the Literature. African Development Review, 31(2), 135-148.
35. Obisesan, A. A., &Ogunrinola, I. O. (2020). Corruption, Political Instability, and Economic Growth: Evidence from Nigeria. International Journal of Economics, Commerce and Management, 8(12), 38-49.
36. Odeyemi, T. A., &Adelopo, I. (2018). Corruption, Political Stability and Economic Development in Nigeria. Journal of Economic and Administrative Sciences, 34(3), 193-210.
37. Ogunmuyiwa, M. S. (2016). The Determinants of Corruption in Nigeria: A Political Economy Analysis. Journal of Economics and Sustainable Development, 7(4), 114-123.
38. Olatundun, F. A., &Efobi, U. R. (2018). Corruption and the Environmental Kuznets Curve in Nigeria: Empirical Evidence. Energy Reports, 4, 439-446.
39. Olusoji, M. A., & Ayodeji, F. (2014). Corruption and Economic Growth in Nigeria: A Time Series Analysis. Journal of Economics and Sustainable Development, 5(10), 139-146.
40. Oluwatobi, S., Efobi, U., &Osabuohien, E. S. (2014). Globalization and Corruption: Evidence from Panel Data in Nigeria
41. Osabuohien, E. S. (2007). Corruption and Human Development in Nigeria. The Journal of Socio-Economics, 36(5), 728-739.
42. Oyegunle, A. O., & Adegbite, E. (2019). The Dynamics of Corruption and Economic Performance in Nigeria: A Structural Equation Modelling (SEM) Approach. Cogent Economics & Finance, 7(1), 1692089.
43. Pesaran, M. H., Shin, Y., & Smith, R. J. (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16(3), 289-326.
44. Premium Times. (2016). Arms Deal Scandal: How Nigerian Officials Stole $15 Billion Meant for Arms Procurement. Retrieved from [www.premiumtimes.com/e843-2].
45. Premium Times. (2021). Investigative Journalism: Inside Nigeria's Fierce Battle Against Corruption. Retrieved from [www.premiumtimes.com/jet364].
46. Punch. (2021). NNPC, GMD Under Probe Over Missing $2.1 Billion. Retrieved from [www.punch.com.com/].
47. Smith, J. (2018). The Economics of Corruption in Nigeria: A Review of the Literature. Journal of African Economies, 27(1), 37-54.
48. Smith, J., & Johnson, L. (2018). The impact of corruption on economic growth in Nigeria: An empirical analysis. Journal of Economic Studies, 45(3), 678-693.
49. Transparency International (Annual Reports). Corruption Perceptions Index. Retrieved from [link to Transparency International website].
50. Transparency International. (2020). Corruption Perceptions Index 2020. Retrieved from [link to Transparency International report].
51. Treisman, D. (2000). The Causes of Corruption: A Cross-National Study. Journal of Public Economics, 76(3), 399-457.
52. Tullock, G. (1967). The Welfare Costs of Tariffs, Monopolies, and Theft. Western Economic Journal, 5(3), 224-232.
53. Uduji, J. I., & Okolo-Obasi, E. N. (2018). Corruption and Small and Medium-sized Enterprises (SMEs) Growth in Nigeria: Do Size and Age Matter? Cogent Economics & Finance, 6(1), 1514097.
54. Vanguard. (2020). PEBEC, NFIU Laud Effective Anti-corruption Fight in Nigeria. Retrieved from [link to Vanguard article].
55. World Bank (Various Reports). Retrieved from [link to World Bank publications on Nigeria].
56. World Bank. (2022). Nigeria Economic Update. Retrieved from [insert link]
Published
2024-01-31
How to Cite
Victor Chibuike EBERECHI, Ebele P. IFIONU, & Godfrey O. OMOJEFE. (2024). The Impact of Revenue from Treasury Looting on The Economic Performance of Nigeria. International Journal on Economics, Finance and Sustainable Development, 6(1), 104-114. https://doi.org/10.31149/ijefsd.v6i1.5192
Section
Articles
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