www.transparency.org www.cmi.no Nigeria: Evidence of corruption and the influence of social norms Query Can you provide an overview of corruption in Nigeria, presenting the existing evidence on what types of corruption take place in the country, at what levels of society, at what magnitude – and in particular, what social norms are involved? Purpose nepotism and cronyism, among others; and (ii) to preserve power, which includes electoral Contribute to the agency’s work in this area. corruption, political patronage, and judicial corruption. Content Evidence also suggests that these forms of 1. Introduction: The literature on corruption in corruption are related to the country’s social Nigeria norms. Nigeria is assessed as a neo-patrimonial state, where power is maintained through the 2. Social norms and corruption in Nigeria awarding of personal favours and where 3. Forms of corruption in Nigeria politicians may abuse their position to extract as 4. References many rents as possible from the state. Summary This answer provides an overview of the existing evidence regarding corruption and social norms, highlighting the main areas discussed in the literature related to the social mechanisms influencing corruption in the country, as well as an overview of existing evidence regarding the main forms of corruption that take place in Nigeria. Available evidence demonstrates that corruption in Nigeria serves two main purposes: (i) to extract rents from the state, which includes forms of corruption such as embezzlement, bribery, Author(s): Maíra Martini, Transparency International, [email protected] Reviewed by: Marie Chêne; Samuel Kaninda, Transparency International Acknowledgement: Thanks to the Civil Society Legislative Advocacy Centre (CISLAC) for their contribution. Date: 26 September 2014 Number: 2014:20 U4 is a web-based resource centre for development practitioners who wish to effectively address corruption challenges in their work. Expert Answers are produced by the U4 Helpdesk – operated by Transparency International – as quick responses to operational and policy questions from U4 Partner Agency staff. Nigeria: Evidence of corruption and the influence of social norms 1. Introduction: The literature investigates the relationship between these attributes and a propensity to corruption, or the on corruption in Nigeria level of acceptance among citizens. Nigeria is the most populous country in Africa and Social norms in Nigeria also seem to have been a very important oil producer. For years it has influenced and challenged by the discovery of oil been struggling to decrease unemployment, and gas, but again there are very few income inequality and its dependence on oil investigations into how corruption changed or (African Economic Outlook 2014). The period of adapted in response to these developments. economic growth due to oil exports has not sufficiently trickled down to the poor, even though This section analyses the available evidence on around 77% of total government revenues come the implications social norms have on corruption from the oil sector (Freedom House 2012). It is in Nigeria, and also points out the main gaps in widely accepted that the misappropriation of the literature. public funds and assets by corrupt elites has been a major cause of Nigeria’s underdevelopment (Global Witness 2012). Nigeria: A neo-patrimonial state? Patrimonialism is defined as a social and political Within this framework, and given the strategic order where patrons secure the loyalty and position of Nigeria as the biggest oil exporter and support of clients by granting benefits from their most populous state in Africa, a lot of research own or state resources. Neo-patrimonialism, on has been conducted on corruption in the country. the other hand, gives rise to a ‘hybrid’ state. The Many studies analyse Nigeria’s political history distinction between the public and private spheres and how the country’s governance and anti- exists at least formally, but in practice real corruption measures have developed since decision-making happens outside the formal colonisation. Several papers also discuss the institutions (Erdmann & Engel 2007). Instead, history of corruption in Nigeria, looking in decisions about policies and resources are made particular at the relationship between colonisation by powerful politicians and their cronies who are and corruption / patrimonialism, as well as the linked by informal, personal and clientelist manifestations of corruption during networks that co-exist with the formal state authoritarianism and the democratisation process structure (Nawaz 2008). As such, neo-patrimonial (first to fourth republics). Other studies focus on states fail to guarantee the universal and fair analysing the risks, causes and consequences of distribution of public resources. corruption in a given sector, as well as the measures taken so far to curb corruption within The literature highlights the main characteristics of those sectors or the public administration in a neo-patrimonial state, and according to the general. patterns of corruption identified in the previous section, it seems that many of them can be The first part of this answer provides an overview observed in Nigeria. They include: (i) of the existing literature regarding corruption and presidentialism, i.e. the systematic concentration social norms, underscoring the main areas of power on the hands of one individual; (ii) use of discussed and the main findings. The second state resources for political legitimation; (iii) a section looks at the existing evidence regarding culture of “rent-seeking” linked to the private the major forms of corruption that take place in appropriation of resources by a particular group; Nigeria. and (iv) systematic clientelism, where power is maintained through the awarding of personal favours, such as public jobs, contracts and 2. Social norms and corruption licenses, among others (Erdmann & Engel 2007). in Nigeria The last characteristic is definitely prevalent in There are several academic papers discussing Nigeria. Smith (2007) argues that patron- the characteristics of Nigerian society. Nigeria is clientelism is the basis of the country’s political often classified as a neo-patrimonial / economy and society. It is manifested in different prebendalism state (Lewis 1994; Beekers & Bas circumstances. For example, rather than van Gool, Smith 2001 and 2007) and while these navigating through the country’s bureaucracy and particular characteristics have serious implications expecting the state to provide services, in patron- on the social mechanisms enabling corruption in client societies citizens are more likely to look for the country, there is hardly any literature that support from a personal connection. In Nigeria, www.U4.no 2 Nigeria: Evidence of corruption and the influence of social norms this is usually someone of the same ethnicity or This helped to establish a vicious cycle: increased originally from the same community. This also dependence on oil revenue leads to increased means that individuals are likely to support political instability and greater reliance on political leaders from their own communities or patronage networks to gain access to power ethnic groups, in the hope that they will benefit (Gillies 2009). In addition, the focus on oil and the from greater opportunities if those politicians get lack of investment in other areas leads to higher into power (Willott 2009). unemployment, which in turn increases dependency on the state and patronage networks. As such, the maintenance of patronage networks Lastly, the non-pursuit of internal taxation patronage is extremely important. Obligations to contributes to a participation and accountability communities of origin are usually strong and deficit and to a weak connection between citizens frequently mobilised for political and economic and the state (Amundsen 2010), resulting in less purposes. Therefore it is not uncommon that a social control and worse public service delivery person occupying a position within the (Fritz and Menochal 2006). government is expected to employ others from the same community or to spend public money that The nature of corruption and the social norms benefits his/her community (Smith 2007). Within implicated certainly changed with the increased oil this framework, many of the forms of corruption revenue. Combined with a weak public discussed in the next section are generated or administration, opacity and a culture of impunity, exacerbated by the fact that the country relies oil provided further opportunities for public officials heavily on patron-client networks. to extract rents from the state. As such, many of the forms of corruption identified in the country in However, the oil discoveries in the 1970s and the past years are related to the management of further structural adjustments adopted a few years oil resources. later slightly changed the relationship between individuals and the state, and also altered the The next section discusses the implications of social norms and the associated forms of increased state revenue on the country’s social corruption. norms and citizens’ understanding of corruption. Nigeria: A rentier state? Social norms: The dichotomy of The discovery of oil in Nigeria brought a huge corruption in Nigeria increase in state revenue, and consequently a There are very few studies analysing the social scramble for resources among different ethnic mechanisms that enable corruption and prevent groups. There is also