SOCIAL CAPITAL, CORRUPTION AND ECONOMIC GROWTH IN NIGERIA: A CASE STUDY OF SOME CONTRACTS AWARDED BY NIGER DELTA DEVELOPMENT COMMISSION IN AKWA IBOM AND CROSS RIVER STATE

Abstract

Social capital is acquired through goodwill which a person poses over time. It is a very vital tool for mutual trust. It creates wealth since confidence is reposed on whoever has it. However, due to generational change, this vital societal instrument has begun to fade off as people now use this opportunity for selfish gain. It has paved way for corruption be it political or any other form. The resultant effect is that this social deficit has translate into infrastructural decay as people who are trusted to handle vital project defines it immoral to render moral justice to the obligations of the society, hence, a fall in total productivity and a tin relay on Gross Domestic Product (GDP). The overall result is a negative impact on economic growth. To effectively carry out this study, the researcher collates all contracts awarded by NDDC from 2004 to 2011; assess the level of completion by using simple percentages. It was discovered that contracts were poorly executed due to high leveled corruption by government officials who sometimes award the said contract to ‘trusted’ persons’. Niger Delta Development Commission (NDDC) is set by Nigerian government to empower and provide infrastructural facilities to the people living within the Niger Delta region.

Keyword: Social Capital, Corruption, Economic Growth, Gross Domestic Product and Niger Delta Development Commission.