COST OF CORRUPTION AND ECONOMIC GROWTH IN NIGERIA
ABSTRACT
This study examined financial crimes of small scale enterprise in Benin City: Perspective of the Entrepreneur. In order to actualize the objectives of the study, various literature and theoretical issues were discussed. The instrument used for the purpose of this research was gathered through primary and secondary sources. The primary source is through questionnaires while the secondary source extracts from journals by different authors and other publications. The mass of information generated from the questionnaires was summarized in form of table and analyzed using simple percentage. The researcher administered one hundred (100) questionnaires to respondents, out of which eighty (80) were retrieved for the purpose of presenting and analyzing responses to issues raise in the questionnaires. The hypotheses stated in the study were tested using Z-test statistical tool. The findings from analysis revealed among other things that inadequate cash flow policy influence financial crimes in Small Scale Enterprise. The researcher recommends that the management of small scale enterprise should frequently train and re-train their staff in order to increase their knowledge in business management.
TABLE OF CONTENTS
CHAPTER ONE: INTRODUCTION
Background to the Study                     
Statement of the Research Problem             
Objectives of the Study                     
Hypothesis of the Study                    
Scope of the Study                         
Significance of the Study                
Limitation of the Study                    
References                            
CHAPTER TWO: LITERATURE REVIEW
Introduction                             
Review of Theoretical Literature                  
Review of Empirical Studies                 
Discussion                             
References                            
CHAPTER THREE: RESEARCH METHODOLOGY
Introduction                         
Research Design                         
Population                         
Sample Size                             
Sampling Technique                             
The Research Instrument                     
Method of Data Analysis                     
References                                
CHAPTER FOUR: DATA ANALYSIS AND INTERPRETATION
4.1    Introduction                        
4.2    Descriptive Statistics                         
4.3    Test of Hypothesis                         
CHAPTER FIVE:    SUMMARY OF FINDINGS, RECOMMENDATIONS AND CONCLUSION
Introduction                             
Summary of Findings                        
Conclusions                            
5.4    Recommendations                        
Bibliography                             
Appendix                                     
CHAPTER ONE
INTRODUCTION
BACKGROUND TO THE STUDY
According to Egwemi (2012), the challenge of corruption remains one of the most debilitating issues facing Nigeria. It has been one of the impediments to the country’s development efforts. Having said this, it is equally important to add that corruption is a problem that confronts all countries of the world. The only difference is that the prevalence, gravity and persistence of the corruption menace vary from one country to the other. That said, the effects or consequences of corruption are always negative. Corruption blocks and frustrates genuine efforts at development. It leaves its victims literally gasping for breath.
In his opinion, Agbiboa (2012) say that corruption abounds in Nigeria is an indisputable fact. Indeed, ‘‘corruption in Nigeria has passed the alarming and entered the fatal stage; and Nigeria will die if we keep pretending that she is only slightly indisposed’’. He noted that, ‘‘keeping an average Nigerian from being corrupt is like keeping a goat from eating yam’’ and that corruption has ‘‘permeated all aspects of Nigerian society and public affairs; and private business can hardly make progress without indulging in some corrupt practices.’’ Thus, in government, the judiciary, the universities and other educational institutions, the police and the army corruption has become the ‘‘main engine of activity’’.
Aliyu and Elijah (2008), posit that corruption was not given an explicit recognition in the traditional economic growth theories, it has now become a globally recognized policy variable especially in less developed countries where it is considered more critical for the attainment of long-term economic growth and sustainable development. Corruption has also been described as a deadly virus that attacks the vital structures that makes for a society’s progressive functioning. This is clearly the case in a developing country like Nigeria, where limited resources that are initially earmarked for industries, hospitals, schools and other infrastructure are either out rightly embezzled, misappropriated, or otherwise severely depleted through kickbacks and over-invoicing by government officials. Unfortunately, Nigeria has consistently been classified as a leading icon among the most corrupt nations of the world based on the annual Corruption Perception Index (CPI) of the Transparency International (TI). Hence, the pressing need for the government, policy makers and academics to pay keen attention to the issue of corruption and its attendant effects in Nigeria.
In the light of this, the researcher intends to empirically examine the cost of corruption and economic growth in Nigeria.
STATEMENT OF THE RESEARCH PROBLEM
Corruption is one human vice which requires immediate tackling. Given its damaging consequence, it is not a problem whose solution can be put off to another day. That is why most countries have in place institutions charged with tackling the menace. In Nigeria, the challenge of corruption has been discussed, examined and dissected at various fora: seminars, high-powered committees, academic gatherings, and in the media.
All these efforts have been made so that solutions can be found to the problem. However, the problem of corruption as we have argued elsewhere seems to have defied solution. This intractability of the problem is captured in the following words, “each political regime comes to power promising to eliminate the practice and punish offenders only to fall into the same pattern”.
In Nigeria, metaphorical allusions like “long leg”, “bottom power”, “chop chop”, “kick back”, “scratch my back” are all euphemisms for corrupt behavior. Every government that has come to power has pledged that “there would be no sacred cows” and that it would “not be business as usual”. Such promises have not done much to stem the tide of corruption and the phenomenon seems to have become normal in the country.
It is against the above background the following research questions are raised:
Does corruption destabilizes economic activities?
Do corruption has damaging effects on Nigeria social and it economic status.
Does systemic corruption and low level of transparency and accountability being a major sources of development failure?
OBJECTIVES OF THE STUDY
The broad objective of this study is to empirically examine the cost of corruption and economic growth in Nigeria.
The specific objectives are:
To determine if corruption destabilizes economic activities of Nigeria.
To verify if corruption has damaging effects on Nigeria social and it economic status.
To ascertain whether systemic corruption and low level of transparency and accountability being a major sources of development failure.
  HYPOTHESIS OF THE STUDY
The following hypotheses have been formulated to serve as a base for this research;
Corruption destabilizes economic activities of Nigeria.
Corruption has damaging effects on Nigeria social and it economic status.
Systemic corruption and low level of transparency and accountability has been major sources of development failure.
SCOPE OF THE STUDY
This study is undertaken to examine the cost of corruption and economic growth in Nigeria.
Temporary or in term of time series, a period of 31 years is used (1980 to 2011) using some macroeconomic variables as means of assessing the cost of corruption and economic growth in Nigeria.
Geographically, the study will be conducted in Benin City, Edo State.
SIGNIFICANCE OF THE STUDY
It is expected that this study would consolidate existing literature on the issues surrounding the relationship between cost of corruption and economic growth. The study would also facilitate the examination of the effects of cost of corruption and economic growth and thus boosting the empirical evidence from Nigeria. Furthermore, given the empirical nature of the study, the outcome of this study would aid policy makers and regulatory bodies in economic modeling and policy simulation with respect to the selected variables examined in the study.
The result of the study would be of benefits to investment analysts, investors and corporations in examining the effectiveness of corruption and economic growth.  It will also be useful in stimulating public discourse given the dearth of empirical researches in this area from emerging economies like Nigeria. Finally, it would also add to the available literature on the area of study while also providing a platform for other researchers who may want to further this study.   
LIMITATION OF THE STUDY
A study of this nature cannot be carried out without constraints.
A major limitation in this research work is the time duration which is insufficient to cover more geographical locations.
The low response rate from respondents is also a limiting factor including the imprecise measurement of variables.
The sample size and the inability to obtain a completely random sample is also a limiting factor to this research work.
 REFERENCES
Aliyu, S. U. R. and Elijah, A. O. (2008), Corruption and Economic Growth in Nigeria: 1986 -2007, Munich Personal RePEc Archive, 1 – 22.
Egwemi (2012), Corruption and Corrupt Practices in Nigeria: An Agenda for Taming the Monster, Journal of Sustainable Development in Africa, 14(3): 72 – 85.