Corruption Impact on Private Sector Performance in Nigeria: An Empirical Study (1999-2018)

International Journal of Research and Scientific Innovation (IJRSI) | Volume VII, Issue V, May 2020 | ISSN 2321–2705

Corruption Impact on Private Sector Performance in Nigeria: An Empirical Study (1999-2018)

Tonye Richard Apiri¹, Keneke P. Onduka^2
1,2Banking & Finance Department, Faculty of Management Sciences, Niger Delta University Wilberforce Island, Bayelsa State, Nigeria

Abstract: – Corruption has long co-existed with human race. It is as old as reality and remains one of most endless socio economic vice globally both in developed and developing economies with devastating consequences. This notion has attracted scholars from different discipline to examine the subject with mixed ends. This paper tends to bridge an identified gap in existing literature by employing an econometric approach for empirical findings of the studied subject (corruption impact on private sector performance in Nigeria). The study findings reveal as evidenced from the outcome of the error correction mechanism (ECM) that: Corruption has a linear and significant impact on private sector performance in Nigeria for the period under study. Hence, the paper recommends an enlightenment programmes to be jointly design by the arms of Government (Executive, Legislative and Judiciary) in respect to conceived patterns and believes about corruption as to discourage its excessive abuse, and most importantly anchoring it on the habit of desisting from extreme wealth acquisition and the culture of get rich quick syndrome for all. The paper further recommends that, the phenomenon “corruption” should be ascribed with embedded economic benefits rather than individual self-enthroned enrichment.

Keywords: Corruption, Economy, Private Sector, Performance

I. INTRODUCTION

Entrepreneurship is the linchpin of any country’s economic equation in such a way that their good or bad performance generally affects economic performance. Their ideas and innovations triggers productivity and improve livelihood of citizenry. History has it that some countries have witnessed remarkable booms in innovation and performance triggered by the presence of some conditions. Good governance is perhaps the most important of these conditions, in particular when we consider of governance as a body of institutions. Precisely, the World Bank (WB) defines governance as the traditions and institutions by which set authorities in a given country is exercised for the common betterment. This includes the process by which those in authority are chosen, monitored and replaced, the capacity of the government to effectively manage its resources and implement sound policies, and the respect of citizens and the state for the institutions that govern economic and social transmission among them.

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