IMPACT OF CORRUPTION ON THE NIGERIAN ECONOMY
Abstract
Corruption remains a significant impediment to Nigeria’s economic growth and development. This study examined the impact of corruption on the Nigerian economy using the Autoregressive Distributed Lag (ARDL) Model to analyze both short-run and long-run effects. The main objective of this study was to analyze the impact of corruption on the Nigerian economy. The research utilized time- series data on key economic indicators such as Gross Domestic Product (GDP), Foreign Direct Investment (FDI), inflation, and government expenditure, with corruption perception indices as explanatory variables. The ARDL model results revealed that corruption negatively affects economic growth by discouraging investments, increasing transaction costs, and misallocating public resources. In the short run, corruption distorts fiscal policies and weakens institutional frameworks, while in the long run, it hampers sustainable development by reducing public trust in governance.
The study recommends among other things that, strict anti- corruption policies, institutional reforms, and enhanced transparency measures to mitigate corruption’s adverse effects and foster economic stability in Nigeria
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