Corruption as a Militating Factor to Economic Growth in Nigeria

Abstract

The study is aim at evaluating corruption as a militating factor to economic growth in Nigeria. Corruption has retard economic growth and development of many countries all over the world especially the developing countries. This portends a great danger to both the developed and developing economies because of it bandwagon effect. Secondary data were sourced from the annual statistical reports of Central Bank of Nigeria (CBN) and World Bank Reports (WBR) on Nigeria and corruption reports from transparency international on Nigeria. The CBN report provided information for Nigeria economic growth which was proxy by GDP from   1996 to 2015 while WBR provided information on corruption perception on Nigeria proxy by Corruption Perception Index (CPI), Corruption Rank (CR), and Relative Corruption Rank (RCR). Hypotheses were formulated and data obtained from the proxy mentioned above were used for the analysis using the Ordinary Least Square (OLS) regression technique. The study found out that corruption and corruption ranking have significant relationship with economic growth and development.

Keywords: Corruption, Corruption ranking and economic development.