CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND TO THE STUDY:

The general consensus among economists and policy analysts at the World Bank, the International Monetary Fund (IMF), and other international agencies is that corruption is a universal problem, but with more debilitating effects felt in emerging and developing countries, such as those found in Africa, Asia and Middle East (Oyedoyin, 2012). In light of this Aluko (2009) opined that corruption is a global phenomenon and that, it is not the exclusive preserve of any nation, race or section of the world but transcends national boundaries and frontiers and symbolizes phenomenal universal unwholesomeness of political leadership.

In Nigeria corruption is a common word used by both adults and children because it is found in every aspect of Nigeria. This monster called corruption has now been nick named in most Nigerian languages especially in the three major languages! Ndokwu (2004) says: the Igbos call it Igbuozu, the Yorubas call it Egunje while the Hausas call it Chuachua. People no longer frown or feel ashamed to engage in corrupt practices! Chuachua/Egunje or Igbuozu is now acceptable and it is possible to hear someone openly complaining that there is no Chuachua, Egunje or Igbuozu at his or her place of work and as such a person might quickly resign if he or she finds another work where there is opportunity for Chuachua. It is as bad as that!

This menance has led to situations like slow movement of files in offices, police exortion of toll fees, port congestion, queues at passport offices and petrol stations, ghost workers syndrome, election irregularities, among others (Dike, 2005, Ihenacho, 2004, Oliyide and Odeku, 2002 and Oloja 2002 in Aluko, (2009).

Government officials further still corruptly enrich themselves by converting Government money in their custody to their own use, force citizens to pay bribe money, and citizens also induce the officials with bribes to get whatever they want from Government or company offices. Though corruption is found in every society, it is very common in Nigeria, and no one seems to be free from it either as a doer or as a victim.

The need to catalyze balanced development, maximize citizen's participation, and arouse government responsive necessitates the creation of the local government. The local government serves as a form of political and administrative structure facilitating decentralization, national integration, efficiency in governance, and a sense of belonging at the grassroots. The local government is a unit of administration all over the world (Agagu, 2004). Although it is a universal institution, it however exists in different forms and in

different political systems. Whatever the form of existence, the local government has been essentially regarded as the path to and guarantor of administrative efficiency, effective service delivery and participatory development (Arowolo, 2005). It is a critical tier of government because of its closeness to the people (Gboyega, 1987). Local government appeals to both the people and government as a feedback institution that relays the opinions and demands of the grassroots to a higher government (Adejo, 2003).

Odey (2002) opined that corruption in Nigeria is  as the air which every living person breathes in and out, According to him, nobody makes any effort to breathe in the air, it comes naturally. Corruption in Nigeria has become so naturalized that' many of us simply become corrupt without making any effort and often even without knowing it. It is in light of this that the research is posed to examine the Effects of Corruption on Local Government Administration in Nigeria with a special reference to Alimosho Local Government Area (LGA).

1.2    STATEMENT OF PROBLEM:

Empirical literature indicate that despite the establishment of various anti-corruption agencies like the Economic and Financial Crimes Commission (EFCC), Independent Corrupt Practices and Other Related Offences Commission (ICPC), and Code of Conduct Bureau and Tribunal(CCB) to wage war against corruption in Nigeria, its magnitude appears to be on the high side. Corruption has impaired hard work, diligence and efficiency. It has caused incalculable damages to the social and political development of Nigeria. It subverts honest selection processes and distorts prices. Furthermore, it weakens institutions, hampers investment and retards economic development. More importantly the resources that should be used for developmental purposes are being diverted from the society to private or personal use. This accumulation of the nation’s economic resources for personal benefits had variously contributed to the leakage of capital from Nigeria for illegal deposits abroad.

The prevalence of these activities in various aspects of our lives has a tremendous adverse effect on the quality of life of this country, our living standards and national psyche. Corruption brings a nation no good. The resources meant for water supply, roads, education, health and other basic and social services that are captured and stolen by a handful of Nigerians through corrupt acts stultify economic and social development hence creeping poverty all over the place (Ekwueru & Daminabo, 2008).

In other words, it has a crowding out effect on the growth and development of  the country. It’s contributing effects on poverty and poor infrastructural development is the more worrying. Nevertheless the extents of these negative effects are yet to be measured and quantified. It is against this background that this study is inspired. The study intends to examine the extent and the magnitude of the effect of Corruption on Local Government Administration in Nigeria and draw up policy recommendations for the eradication of Corruption in Nigeria.

1.3   OBJECTIVES OF THE STUDY:

The major objective of this study is to examine the effect of Corruption on Local Government administration in Nigeria. Other specific objectives include;

1.   To assess the effect of corruption on local government administration in Nigeria.

2.   To investigate the effect of bribery and corruption on community service delivery in Alimosho Local Government Area.

3.   To examine the effect of corruption on council’s tax revenue generation.

4.   To find out if poor salary scheme promotes corruption in Alimosho LGA.

5.   To find out the effect of corruption on economic growth and development in Nigeria.

1.4    RESEARCH QUESTIONS:

The undertaking of this research project will beam a searchlight on the following research questions;

1.   What is the effect of corruption on local government administration in Nigeria?

2.   What is the effect of bribery and corruption on community service delivery in Alimosho Local Government Area?

3.   What is the effect of fraud on council’s tax revenue generation?

4.   Does Poor salary scheme promotes corruption in Alimosho LGA?

1.5     RESEARCH HYPOTHESES:

The researcher intends to test the following hypotheses at 0.05 level of significance;

Hypothesis One:

Ho:    There is no significant effect of corruption on local government administration in Nigeria.

Hi:     There is a significant effect of corruption on local government administration in Nigeria.

Hypothesis Two:

Ho:    Bribery and corruption has no effect on community service delivery in      Alimosho Local Government Area.

Hi:     Bribery and corruption has an effect on community service delivery in      Alimosho Local Government Area.

Hypothesis Three:

Ho:    There is no significant relationship between fraud and council’s tax          revenue generation.

Hi:     There is a significant relationship between fraud and council’s tax revenue generation.