Buhari and The Dimensions Of Corruption By Bamidele Ademola-Olateju

Corruption exists in three dimensions – 3D. Political, economic and sociological dimensions. Corruption creates obstacles to sustainable development and impairs everybody’s life with deleterious impacts on economic and societal development. From the Nigerian example, corruption poses a vast range of institutional, societal, economic and jurisdictional threats to development. From what we have seen so far, President Buhari is only scratching the surface by focusing primarily on the political dimension of corruption while he neglects the economic and social drivers of corruption. Even the political dimension he has focused on, is losing steam, losing moral currency, given the insanely corrupt Daura cabal he surrounds himself with and the ambitious Turks in the corridors of power who are used to milking our cow. Here are the Issues as I see it this morning and they cut across politics, economics and sociology.

Dependency On Natural Resources Encourages Government Approved Graft

Nigeria’s dependency on crude oil, since we became drunk on it, is a predictor of corruption. If we do not institute reforms, the new solid mineral focus will go the same way of oil. How? The elite will always finds a way to circumvent the process and take advantage of us by lining their pockets. Without political will and a strong judicial system, crimes against the state will go unprosecuted and without consequence. For example; crude oil theft and natural gas price fixing scam robs Nigeria of $10billion in annual income. With little transparency in rent distribution, the NNPC can refuse to remit money and we will never know unless someone blows the whistle. It is a painless way of milking the Nigerian cow. Currently, Nigeria has attracted Chinese investment in mining, agricultural and manufacturing sectors, who has oversight on how it will be done? With unfettered influx of Chinese imports, how can the domestic economy be stimulated?

Giving Pegged Naira rates To Some Businesses For Unfair Competitive Advantage

Companies with connections to government officials have benefited immensely under the prevailing economic conditions. Central bank lends money to those who can pay 30 percent surcharge, giving them unfair advantage over their competitors. In addition, Buhari’s knee jerk monetary policy has encouraged corruption by strengthening Nigeria’s informal economy. The business elite continues to participate in the black market and engage in the purchase of illegal smuggled goods. They consider it as the only way to survive. The small businesses that should be engines of growth have collapsed due to a dearth of capital. If we do not want to reward the corrupt, the Naira must be unpegged totally. The markets has factored this in already and the inflationary effects will be negligible. Unpegging the naira will prevent predatory officials from exploiting the economic crisis to enrich themselves. They will not be able to do round tripping.

Reliance On Foreign Debt Fuels Corruption

Nigerian leaders used foreign debt as a vehicle for money laundering. They take oil money out and turn around to use international credit to invest in the economy. The $20billion the NNPC could not account for, under Jonathan’s tenure was facilitated by foreign debt. To close the gap in the the current budget, Buhari turned to Renminbi Yuan-denominated bonds to the tune of $11billion. Even though I am not a finance guru, I already know how this can create a new wave of corruption. We should borrow to finance projects with realistic completion dates in the areas of infrastructure instead of allowing Dogara and Saraki distribute the money on paper pretending to buy Keke NAPEP and sewing machines or feed the payroll of ghost workers. Foreign debt must be spent transparently to balance economic growth with aggressive anti-corruption measures.

Bloated Emoluments Of Pubic Servants and Legislators.

We have corruption in high places today because the moral identity and the surrounding circumstances of the elite is take all you can and catch me if you can. Nigeria spends twice its current earnings to pay salaries. Is that sustainable? No! We cannot wallow in sin and expect God’s bountiful blessings. Our legislators are the highest paid in the world with fat salaries and allowances. They must be cut! The pain must go round.

Anti corruption drive must be laser-focused on structural and institutional reform. Our business culture is fraught with mines. I ask myself everyday; will this 73 year old take the politically risky but vital fiscal and monetary policy reforms we desperately need? The answer to this will define his legacy.

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