AN ANALYSIS ON THE IMPACT OF CORRUPTION ON PETROLEUM SECTOR
The research examines the impact of corruption in oil and gas industry as implication for economic growth. survey research method was adopted for this study. The finding of the study is that the level of corruption in Nigeria has significant impact on economy growth. The implication of this finding is that economy cannot grow fast without zero tolerance in corruption. The study concluded that despite efforts of ICPC and EFCC corruption still remain problem to Nigeria economy. The study recommends that all the public loots should be thoroughly investigated and offenders once found guilt should e prosecuted and the loots taken back on the value of what has been stolen. Petroleum sector
Corruption remain one of the greatest hindrance to economic and political development of any nation.(Mohammed, 2013). Corruption has been identified as one major obstacle militating against rapid growth and development of the Nigerian economy (Nagari, Umar & Abdul, 2013). It undermines good government, fundamentally distorts public policy, leads to the misappropatriation of resources, harms the private sector and private sector development, and particularly it hurts the poor (Ajao, Dada & Olaoye, 2013). They also state that as a result of the negative effects of corruption on economic development, Nigerian government and international organizations seek for solution on how to combat the menace. Researchers has that corrupt practices have been perpetrated in governance, public and private places since the pre- colonial era to the colonial period and through independence to present Nagari et al., 2013). Corruption is an ancient practice that has been traced back to pre-biblical time and made itself known in the ancient civilizations of developed and developing countries (Nwankwo, 2014). Petroleum sector
Corruption is a disease, which eats into political, cultural and economic growth of any country and destroys the functioning of various organs of the government. The rise of public administration and discovery of petroleum and natural gas are two major events seen to have led to a litany of ignoble corrupt practices in the country (Wikipedia, 2014). Corruption steals money social programmes and services through bribery, kickbacks and inflated pricing of contracts and public projects (Obioma, 2012). He also notes that corruption breeds crises in the country turn out to constitute some of the greatest dangers to the security of the nation. The level of corruption and poor governance prevailing in the Nigerian system still remain high, albeit there are so many efforts by economic and financial crime commission (EFCC), independent corrupt practices and related offences commission (ICPC), Transparent international, World Bank and many other organizations to reduce it (Akinwale, 2012). Baghebo and Atima (2013) stress that since the Royal Dutch shell discovered oil in the Niger Delta in 1956, precisely in Oloibiri, in Bayelsa state, the oil industry has been marred by political and economic strife largely due to a long history of corrupt military regimes, civil rule and complicity of multinational corporations, notably Royal Dutch Shell. Petroleum sector
Ribadu (2006) as cited in Ajao, Dada and Olaoye (2013) say that the history of corruption in Nigeria is strongly rooted in the over twenty nine (29) years of military rule, out of forty six (46) years of her statehood since 1960. According to him, successive military regimes subdued the rule of law, facilitated the wanton, looting of the public treasury, decapitated public institutions and free speech and instituted a secret and Opaque culture in the running of government business. The result was total insecurity, poor economic management, abuse of human rights, ethnic conflicts and capital flight. Prior Studies have looked at corruption in Nigeria (Bakare, 2011. Lawal & Victor, 2012; Ogundiya, 2009; and Mohammed, 2013). However, no prior study has focused on corruption in the oil and gas industry in Nigeria. Hence there is need for this study. The focus of the exercise is on corruption in the oil and gas industry in Nigeria, keeping constant the existence of corruption in the other aspects of the Nigerian society economic, social, political, religious, academic institution and corruption in the services, etc. the nature, types, consequences, efforts made to reduce corruption in the oil and gas sector in Nigeria.