Governance and National Development: The Nigeria Perspective

Abstract

This paper empirically contributed to the debates on whether good governance promotes development. The paper specifically examined relationship between six governance indicators and national development of Nigeria using the time series data spanned 1996-2014. Data on governance indicators which include: Control of Corruption, Government Effectiveness, Political stability or absence of violence/terrorism, regulatory quality, rule of laws and Voice and accountability were collected from World Wide Governance Indicators. Data on National development proxies with per capital income were collected from World Bank. Multiple regression analysis was used to test the relationship between the variables. The findings of the regression results revealed that control of Corruption negatively correlate with national development (Natdev) but only significant at 10%. Similarly, regulatory quality positively and significantly correlates with national development both at 5% and 10%. However, government effectiveness had negative influence on national development but not significant. Political stability or absence of violence/terrorism negatively affect national development but not significant. Similarly, both rule of laws and Voice and accountability positive affect national development but not significant. In group, the result of the regressions analysis revealed that governance explains 76 directions in National development of Nigeria. Based on these findings, the paper recommends that government should tame corruption, ensure timely and impartiality in delivery judgment, end insurgents or terrorism in the north, militants activities in the Niger delta, kidnapping, violence and tensions as well as reduce the burden of licensing and registration of property through it appropriates various agencies in order to build strong institutions and good governance imperative for inclusive growth and national development.

Keywords: Corruption, Development, Governance, Poverty, Nigeria