International Journal of Modern Social Sciences, 2013, 2(1): 1-9 International Journal of Modern Social Sciences

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1 International Journal of Modern Social Sciences, 2013, 2(1): 1-9 International Journal of Modern Social Sciences Journal homepage: ISSN: Florida, USA Article Corruption: A Clog in the Wheel of Industrialization in Nigeria and the Role of Education H. Olatunji*, U. B/Y. Muhammed Department of General Studies, College of Basic and Preliminary Studies, Sokoto State Polytechnic, Nigeria * Author to whom correspondence should be addressed; hafsaholatunji@gmail.com Article history: Received 4 December 2012, Revised 17 January 2013, Accepted 17 January 2013, Published 18 January Abstract: Nigeria after over 50 years of political independence still have quite a number of unresolved problems that has hindered industrial development in the country despite the fact that the country is considerably rich in both natural and human resources, but the issue of corruption is quite troubling and a major factor contributing to the industrial/technological backwardness of the nation. This paper gives an overview of the Nigerian perception of corruption looking into the history of corruption in the country and its impact on industrial development, why the country is still industrially backward and finally looking into the role of our education sector especially vocational and technical education in promoting industrialization. Finally, suggesting some recommendations on how to rid of corruption in Nigeria and also how to promote industrialization trough education. Key words: Corruption, Industrialization, Vocational and Technical Education. 1. Introduction Corruption is not a recent issue in Nigeria it can be traced back to the inception of modern public administration and the discovery of oil and natural gas in the country. This is not to say that the corruption was none existence in Nigeria before this time, but it only became an integral part of the national and international image of the country this period.

2 2 Corruption can be seen as an effort to secure wealth or power through illegal means for private gain at the expense of the general public. It is a phenomenon that has been in existence in the human society for a long time as a major problem, in most developing countries it comes with devastating consequences. Nigeria was labeled the most corrupt nation three times i.e 1996, 1997 and 2000 and was also among the five most corrupt nations five more times, fourth from the bottom in 1998, second in 1999, 2001, 2002 and 2003 [1]. It has been observed that this phenomenon has led to bad governance, a loss of much needed revenue, decrease in the level of foreign direct investment and loss viable business by Nigerian banks. It also demonstrates national prestige and respect, leads to brain drain, civil arrest, business failure and unemployment, election rigging, absence of law and order, and failure of government institution [2]. In line with all these, [3] also assert that corruption has crippled Nigeria s ability to deliver for its citizen any enjoyment of even the minimum social and economic right, including health and education. Generally leading to a retardation of economic/industrial development and to the deterioration of whatever public infrastructure has been put in place. 2. What is Corruption? The word corruption has varied meaning depending on the political, cultural and civilization of the people. For example in most Nigerian communities a man or the community can give a gift to an officer in appreciation of good performance or service, this act is not perceived as a corrupt act but in the Western culture it is likely to be regarded as a corrupt act. In another case, to bend a rule or a procedure to favour somebody may be defended as a discretionary power of the officer which may be covered by the constitution, but in another legal procedure this act can be considered an act of corruption. However, it is of general opinion that corruption involves inducement intended to pressure an act to be carried out outside the set rules and procedures. In line with this, the World Bank defined corruption as the abuse of public office for private gain [4]. Public office can be abused through rent seeking activities for private gain when an official accepts, solicits or extorts a bribe. Public office is also abused when private agents actively offer bribes to circumvent public policies and processes for competitive advantages and profit. Public office can also be abused for personal benefits even if no bribery occurs, through patronage and nepotism, the theft of state or the diversion of state resources. Corruption is a complex phenomenon therefore difficult to define in concise and concrete terms, there is always a consensus as to what exactly constitutes corruption. Due to this difficulty, the Oxford Advanced Learners Dictionary simple defines corruption as dishonest or wicked behaviour [5].

3 3 3. Corruption in the Nigerian Context With roughly over 140 million, 36 states, and over 450 ethnic groups, it is no wonder that corruption has been a very elusive concept to Nigerians. There is a chance that several Nigerians engage in a discussion about corruption while each is talking about a different thing completely. To some Nigerians, corruption was limited to just bribery or kickbacks. However, government`s effort to curb corruption in Nigeria by the promulgation of several anti-corruption laws and legal instruments has made a majority of Nigerians perceive corruption as a deeper and wider concept. Prior to 1966, the criminal code was the only source of law dealing with corruption in Nigeria, because of its narrow nature it was replaced by criminal justice decree in 1966, this also failed to stem the tide of corruption and the code of conduct was turned in 1979, to address the short comings of the Justice Decree. Due to the non-inclusion of the private sector, in 2000, the independent corrupt practices and other related offences act was promulgated which eventually gave birth to the Independent Corrupt Practices Commission (ICPC) and the Economic and Financial Crimes Commission (EFCC). Both charged with the responsibility of investigating, arresting and charging any offender with corrupt practices either economic or financial crimes in Nigeria to court [6]. 4. History of Corruption and Its Impact on the Country s Industrial Development The past and present history of Nigeria has recorded many cases and exhibits of corruption. It is of no surprise that with the nature of the country s political economy, the weak institutions of government coupled with a dysfunctional legal system, industrialization is still a mirage for Nigeria even after over 50 years of political independence. Nigeria is one of the very few countries in the world where a man s source of wealth is of no concern to his neighbours, the public or the government. There is a strong standing culture of affluent and ostentatious living and to be a big man is a fore most importance in the mind of most Nigerians. Official misuse of resources for personal enrichment have been a trend since the creation of modern public administration and even more severe after the discovery of oil and natural gas. Even the colonial masters did not much to encourage living moderately. Corruption, though prevalent was kept at manageable level during the first republic. Azikiwe was the first major figure that was investigated for questionable practices. In 1944, a firm belonging to Azikiwe and family bought a Bank in Lagos and it was reported that most of the paid-up capital of the Bank (African Continental Bank) was from the Eastern Regional Financial Corporation [6]. During the Gowon Administration in 1975 a corruption scandal surrounding the importation of cement engulfed

4 4 his administration many officials of the ministry of defence and the central bank of Nigeria were involved in this scandal [7]. In 1985, cross sections of political figures were convicted of different corrupt practices under the government of General Buhari. Then General Babangida Administration, This regime is seen as the body that legalised corruption in Nigeria. His administration refused to give account of the gulf war windfall, which is estimated to be 12.4 billion dollars [6]. The General Abacha regime was a very colourful period of corruption. After his death, French investigations of bribes paid to government officials to ease the award of a gas plant construction in Nigeria revealed the global level of official graft in the country. The investigations led to the freezing of accounts containing about 100 million United States dollars [8]. In 2000, two years after his death, a Swiss Bank Commission report indicted Swiss Banks for failing to follow compliance process in allowing family and friends of Abacha access to accounts and depositing amount totalling $600 million US dollars into the accounts, same year a total of more than $1 billion US dollars were found in various accounts throughout Europe [9]. From 2003 to 2007, Nigeria attempted to implement and economic reform program called the National Economic Empowerment Development Strategy (NEEDS) aimed at raising the country s standard of living through a variety of reforms, it was to address basic deficiencies like, lack of fresh water for households and irrigation, unreliable power supplies, decaying infrastructure, impediments to private enterprise and corruption. In the area of project execution, corruption has also been manifested, for examples, the Ajaokuta Steel Mill has been under construction for over 19 years now and still consuming billions of naira and still yet to produce any steel. Despite the millions of naira sunk into the National Integrated power project instead of producing megawatts of electricity we have only succeeded in producing megawatts of excuses. It is of interest to point out that according to President Goodluck Jonathan, contracts awarded in Nigeria cost 30-40% in excess of similar contracts awarded elsewhere and contractors collect 100% mobilization fees of the hugely inflated contracts. And only in Nigeria will the cost of commissioning a project cost the same as executing the project [10]. Corruption also scares off new investors, according to a report obtained by LEADERSHIP, it was revealed that 10% of all companies paid bribe in the year before the study was conducted and about 20% admitted that the payment of bribe to public officials was either fairly or very frequent while about 8% of all the companies refrained from making new investment for fear of corruption [10]. Corruption has had a severe negative consequence on the industrial growth and development of Nigeria for over 50 years. Even where conducts like fraud and bribery does not directly involve the government. The public effects are just as severe, corruption has affected government and the structure

5 5 of the society. It has crippled the State s ability to deliver for its citizen s enjoyment of even the minimum social and economic right, including health and education. As it was earlier identified [2], other specific negative consequences of corruption in Nigeria are a loss of much needed revenue, decrease in the level of foreign Direct Investment and loss of viable business by the Nigerian banks. The respect and prestige of the country have also been diminished by corruption leading to brain drain, civil arrest election riggings, absence of law and order, failure of government institutions as well as business failure especially the small, medium and micro enterprises and mass unemployment. Consequently, it should not be a surprise that with all the above elements, Nigeria is yet to record any impressive level of industrialization even after over 50 years of political independence. 5. Industrialization and the Role of Vocational and Technical Education Industrialization is the process of manufacturing consumer goods and capital goods and of creating overhead capital in order to provide the goods and services to both individuals and business [11]. Industrialization is undeniably a pre-requisite for economic development and technology is a necessity for industrialization. For a country to be industrialized, it has to be technologically advanced. Technology as defined by the Oxford Advanced learner s Dictionary is the scientific study and use of mechanical, art and applied sciences e.g. engineering and its application of this to practical tasks in industry. Uwaifo and Uddin [12] stipulated that a country is industrially/technologically backward when: i. It cannot produce capital goods such as tractor, lathe machine, drilling machine, cars, trains and other earth moving equipments. ii. It is unable to exploit her natural resources except with the help of foreigners who will provide the technology and expertise needed. iii. It is unable to mechanize her agriculture. iv. It depends on other countries for the supply of spare parts for industrial machinery. v. It exports raw materials to other countries as against finished products. vi. It is unable to produce her own military hardware with which to defend herself if the need arise. A critical examination of Nigeria revealed that all the points mentioned above are present in the country. This means that Nigeria is industrially/technologically backward even after over 50 years of political independence. In line with [12], the reason for this industrial backwardness can be attributed to the following reasons;

6 6 a) The colonial masters discouraged technological growth in Nigeria right from onset, by discouraging the further development of Nigerian local tools and goods so as to provide market for their own imported goods. b) The industrial policy adopted after independence i.e the import substitution industrial policy, never went beyond building of assembly plants. c) The philosophy of Nigeria education during the colonial period was mainly to produce clerks, missionaries and interpreters. Skills and practical competence which are needed for technological/industrial development was not an integral part of the colonial educational system. It took Nigeria about 30 years to change this philosophy. d) Inability to commercialize research findings. A good number of findings or inventions have been discovered by institutions like the federal institute of industrial research, the polytechnics, the universities etc. With an effort of commercialization by the government or private sector. e) The refusal to develop the military inventions made locally by Biafra during the civil war. f) Government attitude towards breaking the jinx of industrial backwardness in Nigeria is both disgusting and appalling. You can find all brands and modes (even 2011 models) of cars in Nigeria but not one have been designed or made in Nigeria. g) Our universities, polytechnics and technical colleges that are supposed to train proficient engineers, technologist and technicians are mostly filed with obsolete and in most cases nonfunctional equipments. Education has become more and more apparent as the most potent weapon to any individual, community or nation for development [13]. In line with this [14] observes that the educational industry is always part of the organization of society and so its aims are derived from the values, beliefs and needs of the society in which it is situated. This philosophy can also be seen entrenched in the National Policy in education in Nigeria, which states that the country s educational goal as to build a free and democratic society: a strong and self-reliant nation; a great and dynamic economy; and a land of bright and full opportunity for all citizens [15]. It will not be an understatement to say that education in Nigeria is expected to promote industrialization (a united, strong and self-reliant nation) and to curb corruption (a just and egalitarian society) among its goals. After 50 years of political independence and quite a number of reforms and adjustments in the national development plans, these objectives of education are yet to be justified. The first National Development Plan ( ) [15] used by the federal government emphasized modernization and technological training, in 1969, a national curriculum conference was organised to overhaul the Nigerian education system. The creation of the second National Development plan span from 1970 to 1974, and the objective of the plan became the foundation of the

7 7 National Policy on Education in In 1996 a new curriculum for citizenship education was development to reflect the transition to constitutional democracy and thus in 1999 as Nigeria became a constitutional democratic nation, a new constitution came alive. This new constitution identify, citizenship, the legislative and executive branch, the judiciary etc and it was expected that this constitution will be among other things a catalyst to national consciousness, political reconstruction and participation and economic stability and growth as well as individual development. All aimed at eliminating corruption and promote industrial development among other equally important objectives. 6. Summary and Conclusion There is surely a clear cut correlation between corruption and industrial growth and development. The rate of economic growth, domestic and foreign investment, employment and fair distribution of income all suffers and retards as a result of corruption. Corruption in Nigeria is a very old subject and despite the fact that the country is undeniably rich in both natural and human resources, it has stolen the wealth of the nation thereby making people to be trapped in poverty. Notwithstanding the well articulate constitution and National Policy on education aimed at among other things, eradicating corruption and promoting industrialization. So it would not be out of line to conclude that after 50 years of political independence Nigeria is still industrially backward and corruption happens to be one of the major factors causing this. Recommendations In order to eradicate corruption in Nigeria and promote industrial development quite a number of anti-corruption mechanisms need to be put in place, but just like the Chinese will put it, a journey of a thousand miles starts with a step. First and foremost, the fight against corruption cannot be left to the agencies solely; it should be the responsibility of every Nigerian, irrespective of socio-economic status or religion. Two bills should be passed in order to make this effective. These are the freedom of information bill and the Whistle-Blow s Bill. This would give the general public power to asses information and blow whistle on any corrupt act when necessary. All elected pubic officers should be forced to declare their assets truthfully and this should be verified. There should also be a independent, professional and regular audits of a local government, state and federal account and the result made available to the public. The police force and the judicial Bench should be rid of corruption. A zero-tolerance for bribery should be maintained in both sectors so as to have a just and fair community.

8 8 The Banks and other financial houses like the insurance should also be rid of corruption, this way money laundering will be curbed. There should be no justification whatsoever for the lack of stable power supply, water supply and bad roads network in the country. Without these, there will be no industrial development. There should also be a reduction in the incentives for public officers, and the salaries of the public officers be made known to the entire public this way it would discourage those aiming to use these offices as a way to get rich quick go for public post. For the education sector to promote industrialization: The funding to the education sector as a whole should be increased. The United Nations recommended that African nations allocate about 21% of their national budget to education, but in Nigeria this percentage is for the national assembly members, leaving the education sector to suffer. If this is done a mechanism should be put in place that will independently monitor how every naira allocated to the sector is put in use. The discrimination against the polytechnic products in the labour market should be addressed, as youths are now systematically shunning the institutions and this would cause a long-run negative impact on the nation s quest for middle level manpower and technological development. References Goodling, N. A., (2003). Nigeria s Crisis of Corruption can the UN Global Programme Hope to resolve this Dilemma. Vanderbit Journal of Transnational Law, 36 (3). Ribadu, M. N., (2003). Economic Crime and Corruption in Nigeria: the causes, effect and efforts aimed at combating these vices in Nigeria. Paper presentation at the Monaco World Summit. 5 th International Summit in Translational Crime. Monte Carlo 23 rd and 24 th October, Obayelu, A. E., (2007). Effects of Corruption and Economic Reforms on Economic Growth and Development: Lessons from Nigeria. A paper prepared and submitted for 2007 African Economic Conference. World Bank (1997). Crimes in Nigeria, Helping developing countries combat corruption: The role of the World Bank. Oxford University Press, New York, p39. Hornby, A. S., (1995). Oxford Advanced Learners Dictionary of Current English, 13 th Edition, Oxford Press Ltd. Ibadan. in Nigeria. Wikipedia, the free Encyclopaedia, retrieved on 29/12/2010.

9 9 Turner (1976). The Nigerian Cement Racket, Africa Guide. http//en.wikipedia.org/wiki/corruption in Nigeria retrieved 19/12/2010. Igbikiowubo, H. (2004). TSKJ SAGA, Swiss Govt. Freezes $100m Accounts. Vanguard, Nigeria December 6, Pallisfer, D., (2000). Comment and Analysis: Pennies from heaven: many of Nigeria s Missing Millions were laundered through greedy banks in London, The Guardian (London), September 7, Natsa, R. T., (2010). Corruption Stalls New Investments LEADERSHIP. Sept. 21 st All Africa Global Media, Abuja. Jhingan, M.L., (2003). The Economics of Development and Planning. Vrinda Publications (p) Ltd. Delhi, India. 36 th Revised and Enlarged Edition, p337. Uwaifo, V. O., and Uddin, P. S. O., (2009). Technology and Development in Nigeria; The missing link. Journal of Social Sciences, 28 (2): Abdulkarim, S., (2009). Education and the Challenge Globalisation. Daily Trust Wednesday, October 28, 2009, p13. Dzobo, N.K., (1971). The Modern Educational System in Ghana: It s Role in National Development. Ghana Journal of Education, 2(1). Federal Republic of Nigeria (2004). National Policy on Education, 4 th Edition, NERDC Press Lagos.