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You are reading project material titled: Corruption And Underdevelopment
1.0 BACKGROUND OF THE STUDY
1.1 Statement Of The Problem
1.2 Objectivity Of The Study
1.3 Significance Of The Study
1.4 Literature Review
1.5 Theoretical Frame Work Hypotheses
1.6 Methods Of Data Collection And Analysis
1.7 Scope And Limitation Of The Study
1.8 Definition Of Terms.
2.0 THE HISTORICAL DEVELOPMENT OF CORRUPTION IN NIGERIA
2.1 Corruption Under Colonial Rule
2.2. Corruption Under The Military Rule.
2.3. Corruption Under The Civilian Rule
3.0 EXTERNAL LINK TO CORRUPTION IN NIGERIA.
3.1. Subversive Role Of Friendly European Countries.
3.2. Reckless Lending And Conditions Of Foreign Aid
3.3. The Role Of Foreign Companies And Non Governmental Organizations (Ingos)
4.0 THE STRATEGIES FOR CUBING CORRUPTION AND UNDER-DEVELOPMENT
4.1 The Policy Of Indigenization And Nationalization
4.2 Establishment Of Anticorruption Agencies
4.3. Policy Of Deregulation
5.0 SUMMARY, CONCLUSION, RECOMMENDATION
5.3 Recommendation Bibliography
Background of the Study
A man can be born again; the springs of life can be cleansed instantly…if this is true of one, it can be true of any number. Thus, a nation can be born in a day if the ideals of the people can be changed [William Jennings Bryan]. Nigeria is one of the Countries in Africa that loses billions of dollars yearly because of corruption. She was ranked the second most corrupt country in the world in 2004 [Olu-Olu, 2008]. In 2005 and 2008, Nigeria was ranked 13th and 17th respectively out of 146 countries by Transparency International’s Corruption Perception Index [TICPI]. Although the 2007 ranking placed Nigeria as the 32nd most corrupt country out of 147 countries by TICPI, corruption still remains a serious problem in Nigeria [Shehu, 2006]. Corruption is a “multifaceted phenomenon with multiple causes and effects” [Andvig and fjeldstad, 2001: 1]. It is a trinity of illegal money, commercial and criminal activities [Baker, 2005; Guanardi, 2008]. According to section 8(1) of the Anti-Corruption Law of Nigeria (2004), it entails the act of asking for, receiving or obtaining any property or benefit of any kind for oneself or for any other person. It involves the abuse of public office for self-aggrandizement or private benefits [World Bank, 1997].
The term “corruption” covers a wide range of conduct patterns. It is a product of the socio-economic and political structure of any society. As a multi-faceted
phenomenon, no single theory is equipped enough to explain its causation and/or control. Corruption is not a Nigerian Word. It is an English Word. While corruption is an English word necessarily laced with western ideas, the concept behind it is found in other cultures. Corruption is one of the dare devils that stares humanity in the face. It is also a global problem with certain destructive tendencies in the Third World Countries like Nigeria. But the rate of corruption in Nigeria is so alarming that one is constrained to ask: Is there anything peculiar to the nature of Nigerians that makes them to be corrupt? Achebe [1983: 35], quoting from the weekly star newspaper of May 15, 1983, wrote that the corrupt nature of the Nigerian society is such that, keeping an average Nigerian from being corrupt is like keeping a goat from eating yam. Corruption serves as a spring board to under-development in Nigeria. Most economic, political and social problems in underdeveloped societies like Nigeria emanate from corruption which manifest in many ways such as: lack of accountability, inadequate funding of programs, diversion of public resources to private ownership, different types of discriminations, ethnicity, lack of competence, inefficiency etc. The problem of corruption as a phenomenon is historically rooted in the country’s political economy. In the colonial period, it was attributed to colonialism.
Although, the government has embarked upon anti-corruption measures, these are not sincerely and properly implemented such that the expected objectives and
goal are not achieved. The problem is thus rather aggravated. Consequently, corruption has continued to perpetuate underdevelopment in Nigeria. Many factors seem to have combined to make the situation severe or worse than the case in the colonial era. Firstly, Achebe (1983: 1) fascinatingly explained that: The trouble with Nigeria is simply and squarely, a failure of Leadership. There is nothing basically wrong with the Nigeria land and climate or water or air or anything else the Nigerian problem is the unwillingness or inability of its leaders to rise to the responsibility or to challenge of personal examples, which are hallmarks of true leadership. There is also a common belief that poverty is one of the major causes of corruption. Here, it is argued that there exists a great deal of poverty among Nigerians in almost every segment of their social life. In Nigeria today, it is just a few families that can boast of three square meals a day, wear good clothes, or enjoy the basic necessities of life, such as water, good road network and electricity. Hence, everyone takes to corruption, no matter one’s own small capacity as a way of making up or balancing the prevalent inequalities. It is also equally true that, corruption is due to the degeneration and shaky foundations of our moral upbringing. Corruption transcends nearly every structure of Nigerian society. The situation is so bad that corruption has been institutionalized to a point where it almost passes for official policy in both public and private sectors of our national life. The socio-economic and political system itself appears to be built on corruption and it thrives on it. Even the churches and other religious organizations are
themselves not completely free of corrupt practices. This study attempts to assess the impact of corruption in Nigeria’s development with a view to suggesting alternative approach of tackling the phenomenon.
• Statement of Problem
One of the most fundamental problems facing Nigeria today is corruption. The corruption has not only weakened the moral fiber of Nigeria, it has also wreaked havoc in its body politics. Corruption in Nigeria is so devastating and alarming that it has virtually affected every sector of the economy. Consequently, it is obvious that corruption has been a major bane of socio-economic and political development in Nigeria. This leads to the following questions on which the research is based.
• Is corruption responsible for Nigeria’s underdevelopment?
• Is the persistence of corruption in Nigeria linked to external factors?
• Can deregulation curb the menace of corruption and engender development in Nigeria?
Corruption has affected many sectors of the economy. For instance, Nigeria presents a typical care of a Country in Africa whose development has been undermined and retarded by the menace of corrupt practices.
To say that corruption has eaten deep into every aspect of the Nigerian Society is to affirm the obvious. This can be inferred from the revelations of probe panels that have been set up at different times by different regime. In Nigeria, since independence, series of reforms have been carried out in the public service so as to make the public bureaucracy more efficient and result oriented. However, the anticipated gains of such reforms have not been visible due to series of factors which include that of corruption. Whichever way one views corruption, particularly bureaucratic corruption, it involves a violation of public duty or deviation from high moral standards in exchange for [or in anticipation of] personal pecuniary going. It is connected with moral and dishonest acts. Gould D.J cited in identified more than twenty categories of corrupt practices in developing nations which are very much visible in Nigeria State. These are bribery, fraudulent use of official stationary, payment for office visit, payment for letter of recommendation, kickback for wiring, money travel documents and travel related peccadilloes, misuse of official housing two salaries, neglect of public service for per tonal business, salary computation fraud, embezzlement in its various form among other. Corruption in the bureaucratic class is the type of corruption the citizens encounter daily at places like the hospitals, schools, local counseling offices, encounters with the police, taking offices, etc. it is petty corruption of need that occurs when one obtains a business from the public sector through inappropriate procedure.
However, corruption in the bureaucratic class in Nigeria came into being when public servant not steamed in the traditions of a political professionalism, saw how politicians who hitherto, were nothing, became rich overnight through patronages, gift, bribes and actual embezzlement of government funds. It was only a matter of time before the bureaucrats joined them. In Nigeria’s fourth republic, corruption has become a Norm and practice of politics among the present political class [i.e. those that control the affairs of the state] from the presidency of the councilors of local authorities and party chairman. The furniture mentality which this political class brought to governance represents the highest form of corruption and enslavement of the popular masses of the country. Political corruption in Nigeria encompasses the use of official power and government resources by the political class for sordid and disrepute private gain. Indeed, political corruption could be said to be the “head” and other forms of corruption are the “body” cut of the head; the other parts could cease to grow. Nigeria’s main development problem is political corruption which needs to be eradicated.
Accurately, it can be asserted that, it is the duty and responsibility of every good government to create their environment and set the tone for good and effective policies, including conducive business environment, protection of persons and properties etc. in any society or country. The Nigeria government has been blamed properly. So, for not setting a conducive environment, economic and social
development over the years, particularly at this time, when public security and safety has steadily become a major issue for citizens and corporate investors alike. Corruption additionally, has become a hot topic among citizens and investors both apparently risen, due in part, to a battered and depressed economy, and since, the discussion or debate regarding corruption, has tended to be focused or centered around the government or public sector component of the hydra-head corruption monster. This is so, even though, corruption levels or magnitude is not much different, in the private sector. But is quite another thing, and pretend that corruption in Nigeria is localized to public officers and public office-holders sellers of adulterated kerosene are practicing unethical business methods, and even a criminal enterprise, ditto for the groundnut seller who cheats you out of more groundnut because he uses a crooked cup-measure, it is corruption practices, when banks and other financial institutions charge outrageous interest rates, refuse to grant loans to legitimate business people and companies, for capacity building, but grant loans to the well-connected and those willing to wet- the ground, but would never payback the loans. Government has brought ways of combating corruption through some crude in Nigeria. The provisions are laid down in the constitution of federal republic of Nigeria. These include the criminal code, probe panels and commissions, the anti-corruption tribunal, the anti-corruption acts and War against Indiscipline and Corruption Conduct of Bureau, Independent Corrupt Practices and other related offence commission etcetera.
In December 31, 1983, Gen. Muhammadu Buhari became the 7th Head of State in Nigeria selected to lead the country by middle and high ranking military officers after a successful coup d’état that overthrew civilian president Shehu Shagari on December 31, 1983. Buhari justified the military’s seizure of power by castigating the civilian government as hopelessly corrupt, and this administration subsequently initiated a public campaign against indiscipline known as “War against Indiscipline” [WAI]. Aspects of this campaign include public humiliation of civil servants who arrived late for work whilst guards were armed with whips to ensure orderly queues a bus stop. He also moved to silence critics of this administration passing decrees curbing press freedoms and allowing for opponents to be detained up to three months without formal charges. He also banned strikes and lockouts by workers and founded Nigeria’s first secrete police force, the national security organization. This policy was a bit affective, as it curbs Nigeria’s indiscipline for a while until Ibrahim Babangida Badamasi succeeded him in August 27, 1985. Public office is a trust which should not be abused. This necessitated the establishment of the code of conduct Bureau and Tribunal act, chapter 56 LFN 1990 which gave the bureau the mandate to establish and maintain a high standard of public morality in the conduct of government business and to ensure that the actions and behavior of public officers conform to the highest standard of public morality and accountability [Federal Republic 2002].
The Bureau has through its enlightenment programs enable the people to know what is expected of them and to an extent inflamed feat in the minds of some public officers as against corruption practices. Though, they have not achieved expected
result, hence, ICPC [Independent Corruption Practices and other related offense Commission] was established. ICPC [Independent Corrupt Practices and other related offence commission] was inaugurated on September 29, 2002 by the Nigeria president Olusegun Obasanjo. The ICPC mandate is to prohibit and prescribe punishment for corrupt practices and other related offences. This anti-corruption commission was eventually passed and signed into law on the 13th of June 2000. The Act established the Independent Corrupt Practices and other related offences Commission [ICPC] with Justice Mustapha Akambin a returned federal appeal court judge as the chairman, and the act in section 3  providing from the independence of the commission and gives the chair authority to issue orders for the controls and general administration of the commission. Since the inauguration of the ICPC in 2000, the commission, however, has been performing its duties with great zeal and dedication, despite it perennial insufficient funds and manpower. These problems have also been made worse by the citizens who also are disgusted and devastated by corruption but have greeted the ICPC with outright hostility, suspicions and disbelief. Also they face the problem of slow judicial process and rigid procedures and National Assembly incompetence. For instance, it took National Assembly nearly one year to pass the ICPC Bill into law and this has been the case of other ICPC issues in National Assembly.
An important institution that was put in place by Obasanjo’s administration is the Economic and Financial Crimes Commission [EFCC]. The agency was set up in 2002 to tackle financial crimes including fraud and money laundering. Money laundering is a criminal process whereby the proceeds from crimes are hidden and the integrated into the financial system as legitimately acquired funds. The EFCC act was a major departure from the past enabling laws fighting economic and financial crimes in Nigeria: in terms of powers, functions and responsibility. Some problems emanated in the activities of EFCC. These problems are quite enormous and influential that it has impeded its great success. The crusade is Punic in nature and as a result, orchestrated by the politically exposed persons [PEPs] to the settling of political scores. For instance, it was allegedly noted that the commission under Ribadu’s chairmanship the beamed it search light on the political foes of the former president Obasanjo. Hence, the commission suffers politization. Also EFCC can rarely exercise the fall Wrath of the Law on these political readers because the law allows them to claim “political community”. Hence they serve only as prosecutors of crime negating the mandate of crime prevention.Government interference and the slow nature of judicial procedures also militates their activities. It could be observed that the several crusade made by the government in order curb corruption in the Nigeria Society has not been effective. More so, the EFCC and ICPC are not independent, they are been controlled by the executives
and these have been a major hindrance in the fight against corruption in Nigeria. Making corruption history is the surest way of making all the problems of Nigeria a history.
• Objective of the Study
The major concern of this study is to investigate how the growing incidence of corruption has stunned underdevelopment in Nigeria. However, the specific objectives are stated as follows;
• To discover if corruption is responsible for Nigeria’s underdevelopment.
• To ascertain if the persistence of corruption in Nigeria is linked to external factors.
• To determine if the deregulation policy is capable of curbing the menace of corruption in Nigeria.
• Significance of the Study
The study has two basic significances. They are both practical and theoretical in nature. Practically, this research work will be a guide to policy makers, economists, political analysts, policy implementers, and researchers. In other words, it will serve as a tool for the government and private organizations on how to curb and prevent corrupt practices and engender development in Nigeria. Theoretically, the study will close the existing gap in the literature in corruption and by so doing; add to the existing volume of knowledge on the connection between corruption and underdevelopment and how it can be curbed.
• Literature Review
In order to justify the objectives of the study, it will be necessary to review the works of other scholars in the field of study since such a review will provide us with
adequate background. It is through such a review that we will be able to diagnose the short comings of previous studies and the way in which the present study will help in providing solutions to the problems. Ebenezer  in his book Corruption in a Neo-Colonial State: The Nigerian Experience, tried to pose the question—what causes corruption and why various policies that are against corruption in Nigeria have failed? In his answer, he maintains that our leaders failed to comprehend the real causes of corruption. He emphasized that “corruption is a clear cut product of neo colonization which bases its economic program on the capitalist form of development”. Stretching further, he examined the efforts of past administrations to bring to an end, the act of corruption and explained why they were defective. According to him, they failed because corruption is often a symptom of deeper difficulties in the societies where it is prevalent, and usually operates within the broader context of other social problems. The writer’s [Michael Johnston] argument is fraught with same problems.
One of the problems is being that he was unable to highlight these deeper difficulties which he sees as symptoms of corruption. Hence, corruption is associated with slow economic growth, reduced investment, and feeble property and contract rights, ineffective institutions, limited social interaction and weak rule of law, poor economic competitiveness, deep ethnic divisions and conflicts, low popular participation in politics, weak protection of civil liberties, low educational attainment, and closed economic and political systems. In other words, corruption is pervasive in underdeveloped societies and there is hardly any effective means of combating the cankerworm.
Okadigbo  stated that: “When a regional leader is at the helm of a nation’s affairs, where loyalty to an ethnic group supersedes national loyalty, where the national treasure chest is seen as the body of the conqueror at Lagos, when the winner takes all or want to take all without apology and without remorse. When the citizens are careless about how wealth is acquired but cares more whether the conditions of political economy of the state are complete, corruption becomes the order of the day from top to bottom and from bottom to top”. This implies that in Nigeria, the phenomenon of corruption must be subjected to more intensive analysis as Nigerians bye and large, ask less of what is stolen but more of who stole and from where he comes. It is by discovering the much that was stolen, squandered, mismanaged or siphoned abroad that the citizens would begin to appreciate the link between corruption and underdevelopment as those resources that were frittered away would have been able to stimulate the economy and engender socio-economic and political development of the country. What is underdevelopment? Many scholars have given different meaning to the concept. To Rodney  underdevelopment results from unequal interaction between two societies. The more this unequal relationship lasts, the more the backwardness of the less privileged ones. In other words, development is a sign that the developed and underdeveloped societies came into contact when they were in different levels. He further said that if the underprivileged society hopes that they can make ways in this type of relationship, then it is deceiving itself. The poverty of the less privileged
one is the development of the other. This situation will be worsening as far as the relationship continues. He gave example of the European capitalism and the indigenous hunting societies of America and the Caribbean. He said that the contact between the two nearly exterminated the later. This can be applicable in what is happening in the capitalist society today, this is a warning that as far as the relationship lasts, the third world countries will not make any breakthrough to industrialization. From experience, it could be seen that the situation is worsening instead of improving. He uses Soviet Union, China and Korea as the concrete instance of the operation of this rule. He said that these countries were nearly exterminated when they came into contact with the more mature capitalism of the western Europe and that these societies advanced to their present state of development because they succeeded these relationship with the capitalist world and followed a new path altogether. He went further to conclude by saying that, “indeed, as far as the two biggest socialist states are concerned [the former Soviet Union and China], socialist development has already catapulted them beyond states such as Britain and France, which have been following the capitalist path for centuries. Rodney  catalogued the disadvantages that go with the unequal relationship with the advanced countries. He mentioned poverty, stagnation, greed etc. and traced the present predicament of Africa to the time it came into contact with the advanced countries. In the 15th century, this contact gave birth to the underdevelopment of Africa today. This in this view is why Africa has continued to stagnate and Europe continues to develop. In other words, before this contact, Africa
has been developing on their own pace but, this was truncated since its contact with the capitalist world. Rodney concluded by delinking from this relationship and the adoption of socialist mode of production in line with the Soviet Union and the Republic of China. He based his argument on the fact that socialism aims at and has significantly achieved the creation of plenty, so that the principle of egalitarian distribution becomes consistent with the satisfaction of the needs of the members of the society. To him when this is achieved, the workers and the peasants will control the economy, and the exploitation and misery will end. What Rodney  has said, is what is really happening to Africa today. I strongly share his view of severing the relationship from the two advance capitalist countries, though he did not tell us of the consequences of this option and how to avoid it or the palliatives to cushion the effect of delinking. Ake , in his Political Economy of Africa, dwelt extensively on the contemporary features of African economy and how they might be changed in the future. He traced the history of Africa from the colonial period to the neo-colonial
period. He also dwelt extensively on the strategies which the national leaders have adopted to engineer development but these strategies failed to work because of the international atmosphere which make the plan unrealistic. In his opinion, “more often than not the plan is really not a strategy for development but an aggregation of projects and policies, which may sometimes be incompatible”. He agreed that the underdevelopment of Africa is as a result of its long contact with capitalism, and pointed out that the national bourgeoisie contributes a lot to the underdevelopment of Africa through their connivance with the international bourgeoisies by applying
wrong and incompatible policies. He went further than Rodney  and Fanon  to show the conditions that led to the emergence of the petty bourgeoisie, the instrument of this accumulation and the national post-colonial state. According to him, the post-colonial state involves itself in the class struggle. That is to say that the state was highly politicized. The state is highly developed and acts as an instrument of wealth accumulation, and naturally results in a bitter struggle to gain control of it. A critical focus of this struggle is the control of government, which is the formal access to state power. Thus in Africa, those in office do all they can to perpetuate their hold on it, and those out of office do all they can to get it. There is hardly any restraint to struggle because the boundary between the state and the ruling class is blurred. The implication of this according to him, “is a crudely oppressive class rule, because the state and government are too involved in the class struggle, and because of the high premium placed on political power, this to him is what makes political power in Africa to be highly authoritarian as the hegemonic faction of the bourgeoisie adopts a siege mentality”. Fortunately, the tendency to accumulate through the use of state power rather than through productive activities makes post-colonial capitalism less conducive to the development of productive forces and the increase of surplus. In conclusion, he recommended socialism but went on to say that the state of the productive forces in Africa will be detrimental to the attainment of socialism. He also mentioned the interaction of the external forces as an obstacle to socialism, but said that, “in the long run objective conditions are more likely to move Africa to socialism”.
Fanon  argued that Europe is literally the creation of the third world. The wealth were accumulated is that which stolen from the underdeveloped people. “He went as far as saying that we should not tremble with gratitude when any help comes from Europe. He says this should be the ratification of a double realization: the realization by the colonized people that it is there due and the realization by the capitalist power that in fact they must pay”. What Fanon  is basically saying is that Africans should realize that Europe was created by them and therefore should disregard anything that comes from them in the name of gifts or aid. Fanon  enumerated the criminal activities of the colonialists in their robbery adventure in Africa. These include deportations, massacre, forced labor and slavery. These are the methods that capitalism used to increase its wealth, its gold or diamond resources and establish its power. He said that violence was their main instrument of accumulation. He mentioned in detail how the European activities undermined the development of Africans both mentally and physically through the imposition of western culture.
He further castigated the indigenous bourgeoisie for their activities which is instrumental to the internal weakness of the colonized. He said this traditional weakness which is almost congenital to the national consciousness of underdeveloped countries, is not solely the result of the mutilation of the colonized people by the result of the colonial regime. It is also the result of the intellectual laziness of the national middle class, of its spiritual penury and of profoundly cosmopolitan mould that its mind is set in. According to him, this bourgeois class who took over from the colonialist had little or nothing before they came into
power. At the attainment of independence, they engaged in the accumulation of capital to the neglect of the masses that stood behind them during the time of struggle for independence. Instead of investing in productive ventures, they prefer to invest in the one that will yield quick money. Hence, he succinctly remarked. “The landed bourgeoisie refuses to take the slightest risks and remained opposed to any ventures and to any hazard, it has no intention of building upon sand, it demands solid investments and quick returns. On the other hand, large sums of money were spent on display on cars, country house and all those things which has been correctly described by economists as characteristics of an underdeveloped country. Fanon , after condemning bourgeoisie’s activities, recommended that it should not be allowed to find the conditions necessary for its existence and growth. In other words, the combined effort of the masses led by a party and intellectuals who are highly conscious and armed with revolutionary principles ought to bear the way to the elimination of this unuseful and harmful middle class. He also recommended the complete obliteration of the type of business to which this group of people engage in. Finally, he advised the underdeveloped countries not to imitate the European way of life and not to expect anything from them but to try and fashion out new life for the entire people of the underdeveloped society and recommended socialism if possible by violence because in his exact words: Every
generalization must out of relative obscurity discover its mission, fulfill it or betray it. Effiong  and Nwankwo  dwelt extensively on the nefarious activities of the multinational corporations [MNCs] in Nigeria, but unlike of Effiong ,
Nwankwo recommends outright nationalization of these companies. He enumerated the visible activities of the multinationals which include:
• Monopolization of the means of production.
• The repatriation of profits etc.
On the invisible activities of MNCs, he says that they engage in transfer pricing and over-invoicing. After weighing the advantages and disadvantages of the multinationals, he concluded that their disadvantages outweighed the advantages and therefore argues that the contributions of these corporations are at best illusory. All scholars so far reviewed are basically saying the same thing but from different angles. This boils down to the conclusion that the underdevelopment of the third world countries in general and Nigeria in particular is due to the integration of their economy into the capitalist system.
Corruption and corrupt practice in all its ramification cannot succeed or thrive without the connivance of the international bourgeoisie who provide a safe haven for loot public fund in a various home countries, for instance when Gary Foxcroft and Sam Itauma produced the documentary entitled: “Saving Africans witch Children aired on the British Broadcasting Corporation, BBC, and channel 4 of the United kingdom three years ago, the whole world was outraged. The outrage was as a result of the cruelty meted on children who were accused of being witcher. As a result many individuals, corporate bodies, nations and governments took decisive actions to curb the trend and doled out money to Foxcroft and Itauma organization
to assist the kids. But unknown to many donors, Foxcroft and Itauma where scammers who were abusing the opportunities and goodwill provided by the documentary to line their pockets. Sally the duo has turned the misfortune of the children into a fortune making business, amassing wealth from unsuspecting donors under the guise of helping the ‘child witches’. None of the kids have sufficiently benefited from then funds as they are being kept in a very particular condition .so far they have collected over £10million pounds (₦2.6 billion) documentary available to news watch shows that between November 2008 exactly after two days after the documentary was first aired in London and April 2009 .fox croft and his accomplice had collected £25,638 British pounds or ₦68.2 million from donations made online through his website WWW. Justgiving.com stepping stone Nigeria on behalf of the stepping stone Nigeria, SSN, and his nongovernmental organization ,NGO, supposedly for the upkeep of children in Akwa Ibom state .records also shows that the amount realized within 6month after the discovery was shown in UK was above their project target of £20000 pounds or ₦5.08 million. By September 2009, fox croft’s stepping stone Nigeria whose UK headquarters is at 24 St Leonard’s house, Leonard’s gate. Gate Lancaster, had raked in 1.5 million equivalent to 381 million in donation for the purpose of financing the kids in Ituama’s child rehabilitations network ,CRAR centre in Eket
When Foxcroft appeared on channel 4 on November 16 2009 he claimed that the total amount he had received as at then was £200000 pounds out of which he remained £72000 pounds CRARN for the upkeep of the children, but there was no record to show that. But news watch learnt that Itauma was not even aware of the £20000 pounds. Akwa ibom state government donated to stepping stone in 2006 during the administration of the former governor victor Attah and Foxcroft claimed to have used in building a hostel and accommodation for the kids in the CRARN centre, again without the knowledge of Itauma, Foxcraft took two staff from CRARN to establish a parallel organization like CRARN which he called stepping stone Nigeria child empowerment foundation .SSNCEF. With the help of Leo Igwe, executive director of the Nigerian humanist movement and secretary of the atheist in Nigeria he has able to gather some indigent children which he quartered and abandoned qua river hotel and the Ekets sport stadium. Unlike the children of CRARN centre; the children at qua river hotel which stepping stone claimed to have being taken care of were in very pitiable condition before government came to their rescue. the cold between Foxcroft and Itauma which is said to revolve around accountability of funds was exposed at February 18,2011,when the Briton terminated his partnership with the CRARN .he claimed that he took the decision himself because of their unwillingness to uphold internationally held standard in child protection accountability and transparency. Foxcroft decision did not go down well with Itauma and his reaction exposed the fact that Foxcroft activities were not in tandem with their agreement.
According to Itauma, their agreement stipulated that each party should give a three months notice before pulling out of a partnership. But Foxcroft breached that agreement. Itauma also disclosed that fox croft had stop assisting the centre long before his decision to severe ties with him Perhaps worried that his scam has been exposed.fox croft recently placed a paid advertorial in a national daily in Nigeria to counter the allegation of fraud leveled against him by Akwa ibom government.In that advertorial signed by felicities Holman, chair of trustees, stepping stones, which was published in august 6 2011 edition of the nation, the fox croft admitted that his organization received a total of £1.338millon pounds or ₦334.5 million in the past three year (2009-2011) and claimed to have spent 1.057 million pounds translating to more than 300million on project to improve the lives of Nigeria children. He stated that the remaining funds are kept in their charity bank account for continued support of their partner in Nigeria.Ongoing it also said its model school had been funding 121 scholarship places at the school for indigent students; that it sunk two boreholes at its neighbour model school: 40 children since 2010; that it has trained a total of 1,145 teachers from government school to fast track literacy method known as jolly phonies and equally used the funds to provide 40000 workbook free for its pupils and handbook to 1,145 teachers in participating schools.The bogus claimed by stepping stones has further helped to strengthen the fact available that fox croft is a fraudster news watch investigation have revealed that all what stepping stone Nigerian , claimed to have done with the money he collected was false.
For instance, SSN said it realized a total of £1.338 million pounds or ₦334.5 million out of which it claimed to have spent £1.057 million pounds or ₦264.25 million for projects and overheads, but news watch gathered that between 2008 and 2011, SSN had realized more than three million pounds and to date, the amount it remitted to CRARN is not up to £60,000 pounds. He claims that 50 percent of the pupils attending the school are provided with scholarship which also takes care of books and uniform, of the pupils on scholarship, he said that 25 percent of them are orphans .but news watch investigation have proved otherwise .the school is just like a normal private school without any scholarship scheme in place for orphan. The act prohibits child labour which it includes hawking, using a child to beg for alms, domestic labour and child trafficking. It also prescribes an imprisonment term of 10 to 15 years for anyone accusing a child of witchcraft.The judicial panel instituted by Akpabio on November 22, 2010 to investigate the extent of child witchcraft and related child abuse was another positive measure aimed at checking child abuse in the state. The panel was setup to investigate the Fraudulent activities of Foxcraft and Itauma who are currently on the wanted list by the government. One of the recommendations of the panel was that the state government should curb the activities of the NGOs like stepping stones Nigeria and child rehabilitation network. The panel also recommended that effort should be made to recover all the money collected by Fox croft and Itauma on behalf of the
children at Itauma home and other such child center. It was on the strength of the panel’s recommendation that the CRARN CENTRE was sealed off and the children evacuated to government rehabilitation home in Uyo. But how did Foxcroft and Itauma meet to plot the scam? Investigation revealed that Foxcroft came to Nigeria in 2003, to research on oil industry in Mobil Producing Nigeria, Eket, as part of the thesis for his Master’s degree programmed under the University of Uyo and University of Lancaster student linkage programmed. While in Eket, he lodged at Royalty Hotel along Eket Oron Road and was later evicted from the hotel when he could no longer pay the bill. It was during his sojourn in Eket that he met Itauma ho intimated him on the plight of the children. Not long after their meeting, they came up with the idea to do a documentary on the plight of the children. In their thinking, and rightly so , doing a documentary would not only project the good works of Itauma which was hitherto unknown o many outside Eket local government area of Akwa Ibom state and environs, it would bring in financial support from Nigeria and the international community. So, Foxcroft had to go back to the UK to facilitate the production of the documentary. As at that time, he had no money to even reconfirm his flight ticket back to the UK. New swatch gathered that it as Itauma and his group that provided the money for his ticket. While in Britain, he developed the concept but lacked financial backing to carry on. So, he sold the documentary idea to Red
Label films owned by the trio of Mag Garvans,
Tracy McVeigh and Hoost Van Der Valk. Garvans then co-opted Marvin Tracey of the London Guardian of the UK and Sophia Okonedo, a Jewish born Nigerian journalist and mobilized them for the Akwa Ibom documentary.
• Theoretical Framework
Having carefully and painstakingly reviewed the topic of the study, it became imminently imperative that a theoretical framework must be adopted which will serve as a guide in describing, analyzing, interpreting and predicting phenomenon. This theoretical guide will also serve as an arbiter in legitimizing the review. Therefore, the dependency Theory has been chosen as a theoretical frame to guide this study.
According to Dos Santos  “dependency relates to a situation which the economy of certain countries is conditioned by the development and expansion of the other to which the former is subjected. The relation of inter-dependence between two or more economies, and between these and the world trade, assumes the form of dependence when some countries-the dominant ones which are the capitalist nations like America can expand and can be self-sustaining while other countries, the dependent ones like Nigeria can do this only as a reflection of expansion which can have either a negative or positive effect on their immediate development. His basic assumption is that there is a dialectical relationship between development and underdevelopment. In other words, according to Andre Frank  “development
and underdevelopment are two different sides of a universal historical process”. To him, what causes underdevelopment in third world is as a result of what brought about development in Europe and America. This dependency refers to the unequal relationship between the centre which refers to the technological advanced countries of the world and the periphery which refers to the third world countries. Also, when looking at this theoretical framework, we talk about the centre of the centre which refers to the ruling class of the industrial nations while Centre of the periphery refers to the ruling class of the developing countries like Nigeria; periphery of the centre refers to the masses class of the industrialized countries while the periphery of the periphery refers to the masses class of the developing country. This relationship where the center of the developed countries dictates the terms of their co-existence economically, socially and politically is an exploitative and vertical relationship between the center of the centre and the centre of the periphery. In this regard, the periphery is subordinate to the centre, as the centre is assigned the role of manufacturing industrial products while the periphery produces primary goods [raw materials] and needed resources. Consequently, the periphery now depends on the centre for her economic survival thus, the justification and consumption of the theory proved the truth. I prefer this theory of the dependency because it illustrates the exploitative tendency of the developed countries against the less developed countries [LDC] which led to their underdevelopment. The new form of internationalism accompanied by economic and technological
communication network has led to developing countries especially the poor and corrupt ones, swallowing hook, line and sinker all ideas and concepts associated with what is now called globalization. In so doing, they obey the rhythms of international capitalism and its institutions with their attendant consequences. Devastating competition is the hallmark and the motive force of capitalism whose philosophy is encapsulated in the nation that we live in a “world of win-lose competition between the leading economies” [Kingman 1997: 10] where developing nation states like Nigeria out of sheer lack of will, morality, ethics and rule of law, condone corruption and underdevelopment. Developing countries wallowing in corruption dance to and obey the discordant tunes of the Bretton Woods’ institutions-the International Monetary Fund [IMF], the International Bank
For Reconstruction and Development [the World Bank] and International Finance Corporation [IFC], which are more often than not, the sole intelligent planner for these economies. Hence, holding the stick and carrot, they kill or make “the key economic policy of the new world of globalization, democracy and market economy” [El-Rufai, Nasir 2003: 41]. Some have argued that privatization is predicated on the following principles. Firstly, in promoting private sector and liberalized market economy, the government is divested of any kind of business and competition with its citizens because as El-Rufai explained “when government owns, nobody owns and when nobody owns, nobody cares”. Yet, this is only feasible when the government decides to abdicate her responsibility and sovereignty. From the Socratic period through the renaissance to the contemporary times government or social contract is built on trust that the sovereign allocates and
reallocates resources to bridge the yawning gap that would otherwise be created through competition and disparity in expertise, skill and opportunities. But in Nigeria, for instance, corruption has pushed the so-called private sector to seek to maximize its own value at the expense of the economic empowerment and integrity of the common man. An example is the modus operandi of large scale corruption by the government in Nigeria. The government would announce the importation of fuel, say, at three trillion naira, when in actual fact; the barrels of fuel were imported at two trillion, ripping off one trillion naira. In selling the fuel to the independent marketers, the government increases its fraudulent three trillion naira. The independent marketers then turn round to distribute the cost at three trillion naira plus their profit and that of value added tax tot eh public and effective users of petrol. With these fraudulent chains by which the corrupt government gets the essential commodity [fuel] down to the ordinary man in the street, she rips off the public hundred percent of the cost price of the good [petroleum commodity] before the independent marketers rip off the public again some fifty percent of the government’s fraud. In this cyclic corrupt chain, the individual as a motorist or a commuter suffers various disabilities depending on social location within the society. The system, as we have graphically seen, is a situation where the sovereign [or the state] sends corruption instead of good life down to the public. Hence, the state, in the case of Nigeria, has contradicted its existence and could justifiably relinquish its existence in business and service to the public to the private sector participation that would be more corrupt.
For the purpose of guidance and in order to achieve the statements of problems and the objectives of this study, the researcher has proposed the following hypotheses:
• Corruption is responsible for Nigeria’s underdevelopment
• There is a close link between external factors and the persistence of corruption in Nigeria.
• Deregulation is capable of curbing the menace of corruption and engendering development in Nigeria.
• Methods of Data Collection and Analysis
In this study, we adopted the use of secondary sources of data as the main method of data collection. The use of the secondary sources of data is justified due to its intrinsic values. For any research to be meaningful, reliable and scientific facts and ideas, must be supplemented with empiricism. Secondary materials like text books, newspapers, magazines, government publications, research papers, journal etc., were seriously put into use.
• Scope and Limitations of the Study
The scope of the research is limited to the relationship between corruption and underdevelopment in Nigeria. This research work like virtually everything done by man has its limitations. This was largely because of the insufficient time.
Secondly, there were too many data to manage as the library that was consulted for example does not have sufficient current phenomenon of corruption and underdevelopment has elicited a plethora of literature from scholars and analysts in the field of social sciences and political science in particular. Also, lack of sufficient fund on the part of the researcher is another limitation because lack of fund made it possible for the researcher to purchase new materials and makes it possible to make required tours to the various sources of information.Time too was another constraint. The duration of time given to the researcher to carry out the research work was too short as the researcher has other academic commitments pursue too. So the time pressure affected the scope of the work.
• Definition of Terms
Corruption, according to encyclopedia Americana, is a general term for the misuse of public officer or position of trust for private grains. Claude Ake [1981:2] in his book “Political Economy of Africa “, sees corruption to be existing in capitalist and class societies because of the prevalence of private property and scarcity which the capitalists state generate.
Underdevelopment: this means economic backwardness which results from the inability of a country to deal with its environmental, the underdevelopment is characterized by lack of indigenous industry, inadequate production of food, unscientific agriculture, underdevelopment is not absence of development but it makes sense only as a way of comparing levels of development. Underdevelopment is very much tied to the fact human social development has been uneven and from a
strictly economic view part some human groups have advanced further by producing more and becoming wealthier. Capitalist Countries: these are western allied nations that situate in Europe and North America and have colonies in African and other third world countries. Capitalism: a system of production in Nigeria where individuals owns both the factors and means of production. Siphoning: It is the act of removing money from one place to another, especially dishonestly or illegally. Corrupt practices: These are practices that are opposite to the formal way or method of carrying something out. Comprador bourgeoisie: These are Nigerian who perpetuates corruption in Nigeria. Bribery: It refers to the act or practices of offering or taking bribes. It is the crime of elaborately using improper influence on public officials so as to win some advantage, eg. The award of a contract- chambers 21st century dictionary. Dependency: Reliance and relying on somebody or something like Nigeria does on the westerns which is one of the causes of corruption. Bourgeoisie: These are the individual that own and control the means of production that was achieved with the help of the comprador in exploiting the nation. Loans: these are aid given to less developed nation or countries (LDCs) .
Power; it is the ability to make people (or things) do what they would not otherwise have done. It could come or applied in a manipulative, coercive, forceful or persuasive way. It s disobedience may lead to punishments. Colonialism: the policy and practices of a strong power extending it control territorially over a weaker nation or people.
Rodney, W. (1972). How Europe underdeveloped Africa, London: Bogle Fanon, f. (1961). The wretched of the Earth, England: Penguim Books. Aka, C. (1981). A political Economy of Africa, Nigeria: Longman. Offiong, D. A. (1980). Imperialism and Dependency, Enugu: (4th Edition) Publishers. Ebenezer, B. (1986). The Socialist Alternative, Benin City: Evans Publishers Ltd. Achebe Chinua (1983). The Trouble with Nigeria, Enugu: (4th Edition) Publishers. FRN (2004) Anti Corruption Law of Federal Republic of Nigeri. Lagos: Daily Times Okadigbo, C. (1997), Power and Leadership in Nigeria, Enugu: (4th Edition)Publishing Co. Ltd. Dos Santos. (1970), “The Structure of Dependencies”. America Economic Review