Empirical Analysis of the Effect of Corruption on Poverty in Nigeria from 1995-2019

Sheba Liman Gamba, Hannatu Yohanna Gimba, Rilwanu Mohammed

Abstract


The aim of this study was to empirically analyze the effect of corruption on poverty in Nigeria, using time series or secondary data spanning the period 1995 to 2019.The study used expost-facto design as its guide and the data were sourced from the publication of Transparency International, Central Bank of Nigeria Bulletins and National Bureau of Statistics (NBS) respectively. Thus, the ADF unit root test for single equation modeling revealed that the data became stationary at first difference, 1(1). The used corruption perception index (CPI), corruption Ranking (CRK) and income inequality (INQ) as explanatory variables, while poverty rate was considered the dependent variable. The Error Correction Modeling (ECM) technique was therefore used for model estimation. The findings from this empirical study revealed that corruption perception index and the Gini coefficient index used as measured of income inequality had statistically significant positive effects on poverty in Nigeria. It was also found also that corruption ranking had an insignificant positive effect on poverty. The study concluded that corruption affect poverty in Nigeria, and recommended among others that government should enact and implement policies and programmes  that will help in  curbing corruption in Nigeria  in order to reducing  the corruption perception index, government should provide opportunities for citizens to earn more income so as to reducing the level of poverty in the country and government should also adopt fiscal policy instruments that will ensure equality in income distribution and address poverty.


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References


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