CISLAC: Corruption is root cause of systemic failures and deepening poverty, insecurity, and underdevelopment

 

[CISLAC’S STATEMENT ON INTERNATIONAL ANTI-CORRUPTION DAY 2024]

On this International Anti-Corruption Day, the Civil Society Legislative Advocacy Centre (CISLAC) salutes Nigeria’s anti-corruption agencies for their relentless efforts in combating corruption despite severe political control, limited resources, and personal risks. Many of these individuals have faced threats to their lives for their work, underscoring the huge sacrifices they make daily to safeguard Nigeria’s future. It is imperative that Nigerians collectively support these agencies to ensure they deliver optimally.

Corruption continues to plague every sector of Nigeria’s socio-economic and political landscape, serving as the root cause of systemic failures and deepening poverty, insecurity, and underdevelopment.

As we mark International Anti-Corruption Day 2024, it is imperative to examine the pervasive effects of corruption in detail and emphasize its role in undermining national progress.

1. Security Sector Corruption
Corruption has severely undermined Nigeria’s fight against insurgency and insecurity, diverting critical funds meant to bolster national defense into private hands. Billions allocated for counterterrorism have been misappropriated, leaving troops underequipped and demoralized while insurgent groups, such as the Lakarawas, gain ground. Recruitment into these groups thrives on widespread poverty and unemployment, exacerbated by systemic corruption.
High-profile cases illustrate the depth of the problem. For instance, Brigadier General M.A. Sadiq is accused of diverting rice palliatives for troops and selling military equipment as scrap. Transparency International and CISLAC reported the recovery of $8.9 million in diverted military funds from foreign accounts, originally allocated for fighting Boko Haram. Additionally, a 2020 Auditor-General report revealed that N442.2 million was misappropriated by the Nigeria Police Force for security equipment never supplied.
The consequences of such corruption are devastating. The National Security Adviser, Nuhu Ribadu, recently criticized security personnel for selling arms to criminals, highlighting the role of such practices in fueling violence. The dire conditions for security agents—ranging from delayed retirement benefits to inadequate support for the families of fallen personnel—further compromise morale and effectiveness.

This cycle of corruption extends beyond defense, affecting the broader populace. Over 4.3 million internally displaced persons (IDPs) languish in camps, predominantly in Borno, Yobe, and Adamawa states, facing squalid living conditions with little hope of resettlement. Meanwhile, extortion and bribery at checkpoints and borders hamper economic activities and deter both local and international investors.

Corruption’s entrenchment in Nigeria’s security apparatus not only endangers national stability but also perpetuates poverty, weakens governance, and compromises the safety of millions. Urgent reforms and accountability are critical to breaking this vicious cycle.

According to the Global Terrorism Index 2023, Nigeria remains one of the most affected countries by terrorism, with thousands displaced annually due to attacks. As of 2024, there are over 4.3 million internally displaced persons (IDPs) in Nigeria, predominantly in Borno, Yobe, and Adamawa states. These individuals live in squalor, facing inadequate access to food, healthcare, and water, with limited hope of returning to their homes.

2. Effect of Corruption on Access to Basic Amenities

Corruption has entrenched itself as a formidable barrier to accessing basic amenities in Nigeria, deepening inequality and exacerbating poverty. Mismanagement of funds, embezzlement, and systemic corruption in critical sectors have left millions of Nigerians without adequate healthcare, clean water, nutritious food, and quality education. This phenomenon undermines socio-economic development, disproportionately affecting the most vulnerable populations.

* Healthcare

Corruption in Nigeria’s healthcare system has rendered it incapable of meeting even the most basic needs. With the 2024 healthcare budget representing just 5% of the national budget, far below the 15% benchmark of the Abuja Declaration, the healthcare infrastructure remains grossly underfunded. Nigeria has a doctor-to-patient ratio of 1:6,000, a staggering disparity compared to the WHO’s recommended ratio of 1:600. This shortfall translates into overburdened hospitals, delayed diagnoses, and increased mortality rates.

Maternal and infant mortality rates are alarmingly high, with a maternal mortality rate of 576 per 100,000 live births and an infant mortality rate of 69 per 1,000 live births​.

Reports of funds misappropriated for building and equipping healthcare facilities abound. For example, Hasiya Bayero Pediatric Hospital in Kano, originally a pediatric healthcare facility, was reportedly neglected and parts were repurposed into a commercial shopping complex before being reclaimed by the new administration. Essential equipment, some uninstalled or lacking consumables, faced challenges like missing trained staff to manage them effectively. While the elite can afford private healthcare or medical tourism abroad, millions of Nigerians face long queues and poorly maintained hospitals, with IDPs and rural populations bearing the brunt of the crisis.

* Water and Sanitation

Access to clean drinking water remains a luxury for many Nigerians. According to UNICEF, 70 million Nigerians lack access to basic drinking water services, while 23% rely on contaminated surface water. Poor sanitation, coupled with inadequate water systems, contributes to the spread of waterborne diseases, including cholera, which claimed over 1,800 lives in Nigeria in 2023.

Corruption in water resource management significantly hampers progres, leaving many communities without access to potable water. Despite billions spent annually on water projects, ghost projects and inflated contracts continue to plague the sector, leaving millions without access to this basic necessity.

* Food Scarcity and Agricultural Corruption

Nigeria’s agricultural sector, despite being blessed with 34 million hectares of arable land, remains underutilized, with only 40% of fertile land cultivated. Corruption in the allocation of agricultural inputs such as fertilizers, tractors, and hybrid seeds have perpetuated food insecurity. Billions of naira earmarked for farming programs at both federal and state levels are frequently siphoned off or diverted to politically connected individuals who misuse resources. Mismanagement means these resources are often diverted to politicians rather than farmers, who may hoard or sell them instead of utilizing them for agricultural development.

For instance, Nigeria had to borrow grains from ECOWAS to address the food crisis, an embarrassing revelation for a nation with vast agricultural potential. Artificial food shortages and inflated prices further exacerbate poverty, as corruption disrupts the supply chain and discourages genuine investment in farming.

* Decline in Education Standards

Nigeria’s education sector is mired in corruption, leaving 20 million children out of school, the highest globally (UNICEF, 2023). Public funds meant for education are often misappropriated, leading to decrepit school infrastructure, unpaid teacher salaries, and a lack of teaching materials. The WAEC, NECO, and JAMB failure rates remain alarmingly high, with less than 30% of candidates qualifying for university entry in 2023. Rather than addressing these systemic issues, policymakers lowered the JAMB cut-off mark to 140, highlighting a failure to improve educational quality.

Sexual exploitation, colloquially known as “sextortion,” has further eroded trust in the education system. Girls from impoverished families are particularly vulnerable, often forced to exchange sexual favors for grades. This exploitation perpetuates generational poverty and undermines human dignity.

Financial exploitation is also rampant in our public institutions of learning.

* Internally Displaced Persons (IDPs)

The mismanagement of funds allocated for IDPs epitomizes corruption’s devastating impact. As of 2024, Nigeria has over 4.3 million IDPs, primarily in Borno, Yobe, and Adamawa States. Camps lack adequate food, water, and medical care, with funds intended for these essentials often embezzled. IDPs, who fled terrorism and banditry, now face inhumane conditions, compounded by corruption at all levels of administration.

* Mismanagement of Humanitarian Aid

Corruption in the distribution of humanitarian aid has left IDPs vulnerable. Funds and supplies meant for displaced persons are frequently misappropriated, leaving camps in deplorable conditions. Without accountability, these displaced individuals are condemned to perpetual suffering.

3. Judicial Corruption

The judiciary, once regarded as the last hope of the common man, has become riddled with corruption. Political interference and contradictory judgments in high-profile cases have turned it into “a circus for legal drama.” Conflicting rulings on electoral disputes not only embarrass the nation but deny ordinary Nigerians access to justice. For instance, several minors were charged with treason during the #EndSARS protests, a blatant abuse of judicial processes. These examples underscore the urgent need for judicial independence.

4. Failures in Public Procurement and Constituency Projects Compliance

Despite the Public Procurement Act, corruption continues to undermine procurement processes. Secretive contracts and inflated project costs have become the norm, depriving citizens of critical infrastructure. Constituency projects, intended to benefit communities, lack a clear legal framework and have become conduits for siphoning public funds. Millions are allocated annually, yet tangible impacts remain elusive.

5. Corruption in the Economic Sector

Corruption in Nigeria’s economic sector has far-reaching implications, draining public funds, stifling economic growth, and exacerbating poverty. From oil theft to tax evasion, the banking system’s complicity in illicit financial activities, and the misuse of public funds in real estate, corruption continues to undermine Nigeria’s potential. The economic sabotage, tax loopholes, and financial sector malpractices have left the country vulnerable, restricting access to essential public services and hindering development.

Illegal taxation and extortion at borders and checkpoints have stifled Nigeria’s potential under the African Continental Free Trade Agreement (AfCFTA). Honest traders are subjected to multiple levies, bribery demands, and unnecessary delays that discourage both local and international investors. As a result, multinational corporations such as Unilever have relocated to neighboring countries like Ghana, citing Nigeria’s hostile business environment. This extortion drives away international investors and forces multinational corporations to relocate to neighboring countries like Ghana, increasing costs for Nigerian consumers​

* Oil Theft and Economic Sabotage

Oil theft remains one of the most significant sources of economic sabotage in Nigeria. An estimated 400,000 barrels of oil are stolen every day, amounting to billions of dollars in lost revenue annually. The theft is facilitated by corrupt networks involving politicians, security officials, and insiders within oil companies, which often use their influence to bypass regulations or look the other way. According to the Nigerian National Petroleum Corporation (NNPC), the country loses approximately $1.5 billion every month due to these criminal activities the government of much-needed revenue, limiting its ability to fund essential services such as healthcare, education, and infrastructure development.

* Tax Administration and Oil Companies’ Evasion

Tax evasion by multinational companies, including oil firms, has been a persistent issue in Nigeria. Despite the country being rich in oil reserves, many multinational corporations (MNCs) involved in oil extraction operate with little regard for paying fair taxes. The Nigeria Extractive Industries Transparency Initiative (NEITI) has documented numerous instances where oil companies underreport their earnings or avoid tax payments through creative accounting practices. NEITI’s 2021 audit revealed that Nigeria lost over $4 billion due to non-compliance with tax regulations and the exploitation of loopholes in the system.

The absence beneficial ownership register also hinders the identification of individuals behind these companies and their true economic contributions to the country. A transparent register could make it easier for the Nigerian government to track and ensure tax payments from these oil giants. However, the lack of such a registry allows both local and foreign companies to evade taxes, further perpetuating the cycle of corruption in the economy.

* Corruption in the Banking Sector: Enabling Money Laundering and Terrorism Financing

The banking and financial sectors play a crucial role in facilitating corruption in Nigeria. Lax regulations and ineffective enforcement have allowed financial institutions to become conduits for money laundering and terrorism financing. Hidden accounts and shell companies make it easy for politicians and businesspeople to funnel illicit funds both within and outside the country. According to the Central Bank of Nigeria (CBN), billions of dollars have been laundered through Nigerian banks in recent years, with little to no action taken to punish the perpetrators.

Furthermore, the banking sector has been implicated in enabling terrorism financing. Money from corrupt officials often finds its way into the hands of terrorist organizations. The role of Nigerian banks in facilitating the financial flows of groups like Boko Haram and ISIS affiliates is well-documented, with some banks facing sanctions for their lack of due diligence in monitoring suspicious transactions. This further weakens the nation’s efforts to curb extremism and stabilize the country.

* Failed Transfers and the Lack of Accountability in Public Funds

A significant issue exacerbating corruption in the Nigerian economy is the amount of money tied up in failed or unreversed transfers. Public funds meant for infrastructure development, healthcare, and education often remain unutilized or misappropriated. These funds either vanish through ghost projects, inflated contracts, or simply never reach the intended recipients. In recent years, billions have been allocated to security agencies for counterterrorism measures, yet these funds either fail to materialize on the ground or end up in the pockets of officials. The recent case involving a former Nigerian military official, who embezzled $8.9 million meant for equipping the military, underscores the gravity of the situation.

* Housing Deficit and Real Estate Corruption

Nigeria’s housing deficit has reached alarming proportions, with an estimated 20 million homes needed to meet the demand. Yet, the country’s real estate market is rife with corruption, particularly in the luxury segment, where illicit funds are laundered through unoccupied properties. These properties, often held by corrupt politicians or business elites, remain idle while millions of Nigerians struggle to find affordable housing. According to the Nigerian Bureau of Statistics (NBS), only 40% of the available land is utilized for agriculture or housing development . A large portion of land, especially in major cities and Abuja, is left unused or poorly developed, contributing to the widening gap between the rich and the poor.

In addition, these properties are often bought with stolen or diverted public funds. According to recent reports, government officials use state budgets to buy luxury real estate for personal gain. These investments are often shielded from public scrutiny, making it difficult to trace the origins of the wealth used to acquire them.

6. Political Corruption in Nigeria

Political corruption in Nigeria has entrenched inefficiency, mismanagement, and a lack of accountability, hindering development and exacerbating inequality. From electoral malpractice to public officials’ abuse of power, corruption at all levels of government has led to a loss of public trust in the political system and worsened the nation’s socio-economic challenges.

* Electoral Corruption

Electoral corruption has significantly undermined the integrity of Nigeria’s democratic process. The rise of electoral procurement, where money is exchanged for votes, has diminished the legitimacy of elections. Vote-buying during both primary and general elections has become a common practice, further entrenching corrupt leaders in positions of power. In some cases, Nigerian citizens are forced to pay bribes to secure political appointments, a practice that undermines the meritocratic process and encourages the entrenchment of bad governance. This corruption also extends to the recruitment process within the civil service, with young job seekers often bribing their way into public office, perpetuating a cycle of inefficiency and poor service delivery.

* Political Party Corruption

The political system in Nigeria is not immune to corruption either. There is a significant lack of internal democracy within political parties, where individuals with large amounts of illicit wealth often hijack party structures. These corrupt actors use their financial muscle to control party primaries and the selection of candidates, leaving little room for truly democratic processes. As a result, political parties are often dominated by individuals with vested interests, further exacerbating the corruption problem within the Nigerian political landscape. According to a report by the International Republican Institute, party primaries in Nigeria have become synonymous with “money politics,” where influence and power are bought and sold.

* Public Officials’ Abuse of Power

Public office holders in Nigeria have continuously abused their power, flaunting ill-gotten wealth while the ordinary citizenry struggles to survive. Politicians, rather than addressing the challenges facing the country, prioritize personal luxuries such as foreign medical care and education, leaving public healthcare and schools underfunded and neglected. This culture of impunity has fueled inequality, with the political elite enjoying the best services abroad while the majority of Nigerians live without access to basic amenities such as healthcare, clean water, and quality education.

* Asset Declaration

The issue of asset declaration is another area where corruption thrives. Politicians frequently engage in anticipatory asset declarations, inflating their assets in order to disguise illicit wealth. This leads to the creation of “emergency billionaires” – individuals who, despite their brief tenure in public office, acquire vast wealth through corrupt means. The Code of Conduct Bureau (CCB) has failed to properly address this pervasive abuse of power, allowing public officials to continue accumulating wealth at the expense of the Nigerian people. This lack of enforcement has exacerbated wealth inequality and undermined public confidence in the political system. For instance, a report by the Centre for the Study of Corruption and Integrity in Nigeria highlighted how elected officials use “inflated declarations” as a tool to protect stolen wealth from scrutiny.

7. Erosion of Civic Space

State governments have stifled civic engagement, using laws and intimidation to silence dissent. During the #EndSARS protests, critics of state policies faced arrests and physical violence. Hamdiyya Sani, for example, was brutally beaten for criticizing a governor on social media, showcasing the lengths to which corruption silences accountability.

Comprehensive Recommendations on Tackling Corruption in Nigeria

Corruption remains Nigeria’s greatest obstacle to socio-economic progress, undermining public trust, eroding the justice system, and perpetuating inequality across multiple sectors. To address this pervasive issue, the following seven recommendations are proposed:

1. Strengthen Institutional Frameworks and Autonomy

To ensure an effective fight against corruption, the judiciary and key anti-corruption agencies (EFCC, ICPC, and CCB) must be reformed and insulated from political interference. These institutions should have full operational autonomy, and their leadership should be provided with security of tenure to prevent undue influence. Furthermore, local government autonomy should be guaranteed by empowering INEC to conduct local elections, ensuring greater accountability at the grassroots level.

2. Comprehensive Electoral Reforms and Monitoring

There is a need to enforce transparency in political campaign financing, particularly by instituting clear requirements for the declaration of campaign funds. Strong penalties for vote-buying and electoral malpractices, especially during party primaries, must be implemented. Political parties should also be compelled to uphold internal democracy, reducing the influence of corrupt individuals in party leadership.

3. Revitalize the Education Sector and Combat ‘Sextortion’

To combat Nigeria’s educational crisis, the government must increase investment in teacher training, school infrastructure, and student welfare. Addressing the 20 million out-of-school children (UNICEF, 2023) is imperative. Reforming the university admission process, raising JAMB cut-off marks, and addressing the rampant issue of “sextortion” in academic institutions must be prioritized. Independent bodies should be empowered to investigate and take swift action against perpetrators of sexual exploitation in schools.

4. Boost Healthcare Funding and Address the IDP Crisis

The Nigerian government should allocate at least 15% of the national budget to healthcare (in line with the Abuja Declaration), improving the doctor-to-patient ratio (currently at 1:6,000, far above the WHO standard of 1:600). In addition, healthcare infrastructure must be developed to cater to the needs of vulnerable populations, particularly internally displaced persons (IDPs). As of 2024, Nigeria has over 4.3 million IDPs, who continue to suffer from inadequate access to food, healthcare, and sanitation. A transparent mechanism must be established for the disbursement of humanitarian aid to IDPs to ensure that the resources reach those in need.

5. Enforce Transparency in Public Procurement and Constituency Projects

The Public Procurement Act must be strictly enforced to ensure transparency and fairness in government contracting. Legislative frameworks should be put in place to regulate constituency projects, ensuring that funds allocated are used for their intended purposes and benefit local communities. Procurement processes should be transparent, competitive, and free from political interference, with a clear audit trail of all public funds spent.

6. Combat Economic and Financial Crime in the Banking Sector

The banking sector must be held accountable for its role in money laundering and financing terrorism. Financial institutions should be compelled to fully implement Know Your Customer (KYC) protocols and penalized for failing to do so. The use of digital systems, including enhanced monitoring of BVN activities, should be prioritized to detect fraudulent financial transactions and prevent the misuse of financial services by corrupt individuals and criminal organizations.

7. Promote Civic Engagement, Protect Public Spaces, and Strengthen Anti-Corruption Legislation

The Nigerian government should roll back laws that inhibit free speech, ensuring the protection of journalists, activists, and citizens who expose corruption. Public awareness campaigns should be launched to educate the population on their rights and corruption reporting mechanisms. Furthermore, anti-corruption legislation should be strengthened, addressing gaps in asset declarations, public procurement transparency, and anti-money laundering frameworks.

These recommendations are essential for creating a transparent, accountable, and fair system in Nigeria, which can lay the foundation for sustainable economic growth and social equity. Implementation of these reforms will require concerted efforts from both the government and civil society to ensure that the benefits of Nigeria’s wealth are equitably shared.

Signed:
Auwal Ibrahim Musa Rafsanjani
Executive Director,
CISLAC (Transparency International Nigeria)