'Corruption is Nigeria's Major Problem'

Independent Advocacy Project press release

Lagos: 18 October, 2005. As salacious details of the corruption
scandal involving the former Inspector General of Police, Mr. Tafa
Balogun, Bayelsa State Governor, Diepreye Alamieyeseigha and others
continue to unravel, Nigerians have identified corruption as the
nation's number one problem. The findings of the Nigerian Corruption
Index (NCI), a new survey conducted by Independent Advocacy Project
(IAP), the good governance group, reveals that 58 per cent of
respondents say corruption is the nation's major problem while 42 per
cent say it is a major problem. Perhaps unsurprisingly, the Nigerian
Police ranked highest among the top three institutions where bribe is
most likely to be demanded. The two other institutions are the Customs
and Excise Department and the National Electric Power Authority, now
known as the Power Holding Corporation of Nigeria (PHCN). Reported
incidence of bribery was also highest among the Nigerian Police.

NCI empirically highlights the magnitude of corruption and underscores
its adverse effect on democracy, development and governance. It
captures corruption as experienced by ordinary Nigerians in their
interaction with officials of government establishments. Survey
respondents provided information on organisations where they have
encountered bribery, where they paid bribes, how much and for what.
The survey evaluates the average Nigerian's daily encounters with
corruption in terms of frequency, severity, size, financial and social
costs.

Instructively, of the 32 organizations considered for this study,
reported incidence of bribery was highest among the Nigerian Police
(96%), the National Electric Power Authority now known as Power
Holding Corporation of Nigeria (83%), Customs and Excise Department
(65%), and the Federal Ministry of Education (63%).

Presenting the survey in Lagos today, Mr. Babatunde Olugboji, IAP
Chairman and Africa Policy Expert at Christian Aid, the London-based
development agency pointed out that the findings of the survey has
again highlighted the enormity of the corruption problem, and called
on government to heed the voice of the people by taking urgent steps
to address the problem. Corrupt practices drain government coffers,
street level or petty corruption infests public offices and the police
force, where money is exchanged for licenses and other permits or
officials could be bribed to ignore 'inconvenient' laws and
regulations.

'The World Bank and the International Monetary Fund (IMF) may be
pouring encomiums on the federal government for fighting corruption,
but Nigerians who dip into their meagre income as bribes are telling
the federal government that is not doing enough to fight corruption.
While investigations being carried out by the EFCC (Economic and
Financial Crimes Commission) are excellent avenues of fighting
corruption, such investigations needs to be systematic, systemic and
methodical for them to be momentous, says Olugboji.

Survey respondents say existing punishment for corrupt officials are
inadequate. Confiscation of properties acquired through corrupt
practices (57%), outright ban from contesting – or being appointed
into - public office (55%) and extended jail terms (45%) were
mentioned as key measures through which the federal government can
effectively combat corruption.

Incidence of Corruption

Consistently, police collecting bribes (40%) and PHCN officials
demanding gratifications before rendering services (19%) appear to be
the leading forms of corruption noticed in public institutions. Among
the institutions where one is least likely to pay a bribe to obtain
service however is the Ministry of Justice (12%).

Out of the 32 organizations considered for this study, only about
seven were not significantly ranked as places where the average
Nigerian may need to give bribes in order to enjoy services provided
(those with total scores lower than 20%). The Nigerian Police (96%),
PHCN (83%), Customs & Excise (65%), Education Ministry (63%),
Immigrations and the Passport office were ranked as most likely place
bribe will be required to obtain services.

The 'External' Factor

Olugboji says that in many cases however, high-level corruption is
helped along considerably by the nation's Western partners.
International banks have allowed embezzled funds to be held in secret
foreign accounts. By some estimates, some $30 billion in Nigerian
flight capital has been deposited in European and North American
banks.

'Foreign firms eager to sell their goods have bribed ministers or
tacked 'commissions' for high officials onto contracts or investment
agreements. In some Western nations, bribing foreigners for business
purposes is legal and even a legitimate tax deduction. There is need
for Nigeria to work collaboratively with other countries to tackle the
supply side of corruption, as Western companies have often colluded
with Nigerian officials to fuel corruption in the country.'

Northern donors have become increasingly vocal about corruption in
Southern countries, asking countries like Nigerian to clean themselves
up. However, these Northern donors continue to ignore the
contributions of the multinational corporations to worldwide
corruption, and have refused to change their own policies, or to make
tackling corruption a priority. Indeed, they continue to support
corrupt Southern elites who are willing to back Northern priorities on
economic liberalisation, including the so called free trade and the
downsizing of the state, and willing allies in the ill defined global
fight against terrorism. Evidence has been mounting for some time that
the economic liberalisation policies required of Southern countries by
Northern donors have coincided with, and even led to, increased levels
of corruption.

In the UK for instance, offshore centres have become outstanding
places to launder the proceeds of crime and corruption, owing to the
secrecy surrounding their operations. They have been implicated in
almost all money-laundering schemes. In 1996, the IMF estimated that
US$500 billion - between two to five per cent of global Gross Domestic
Product (GDP) - is laundered offshore every year. In 1999, this
figure, according to the IMF, rose to between US$590 and $1,500
billion. A 1997 UN report also calculated that laundered global
revenues from corruption, fraud, pornography and prostitution stood at
between $500 billion and $1,000 billion. Arms dealers also often use
offshore bank accounts to conceal their tracks.

'It is time for Nigeria to ratify and domesticate the Africa Union
anti corruption convention, it is time Olusegun Obasanjo regime took
concrete – not cosmetic measures – to tackle corruption, it is time
EFCC systematically, not selectively, investigated corruption cases,'
concludes Olugboji.