IIARD International Institute of Academic Research and Development

IIARD INTERNATIONAL JOURNAL OF BANKING AND FINANCE RESEARCH (IJBFR )

E-ISSN 2695-1886
P-ISSN 2672-4979
VOL. 10 NO. 9 2024
DOI: 10.56201/ijbfr.v10.no9.2024.pg134.151

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The Impact of Corruption Through Treasury Looting on Economic Performance in Nigeria

Sydney Keremah Clever (PhD)

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Abstract

This study investigates the intricate relationship between revenue from treasury looting and economic performance in Nigeria spanning from 1990 to 2022. The Nigerian Bureau of Statistics and the Central Bank of Nigeria's Statistical Bulletin are two of the sources from which the study's secondary data were obtained. The findings of the study reveal several key insights. First, corruption through treasury looting exerts a significant negative impact on Nigeria's economic performance. Higher perceived corruption levels are associated with lower GDPGR, highlighting the adverse effects of corruption on economic development. Second, the study identifies a positive short-term relationship between the growth rate of reported looted funds (TLFN) and GDPGR. However, this effect may not be sustainable in the long run, and it raises concerns about the sources and implications of such funds on the economy. The practical implications of these findings underscore the imperative of anti-corruption efforts in Nigeria. Strengthening governance, enhancing transparency, and implementing effective anti-corruption measures are essential for promoting sustainable economic growth. While short-term economic boosts from looted funds may occur, they are not a viable strategy for long-term development and can undermine trust in the economy. This study contributes to the ongoing discourse on corruption and economic performance in Nigeria and gives policymakers, stakeholders and researchers insightful information. It emphasizes the need for sustained and comprehensive efforts to combat corruption and foster an environment conducive to economic prosperity in the country.

keywords:

Treasury looting, Corruption, Economic performance, Nigeria, GDP growth, Foreign

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