The Impact of Corruption on Fiscal Policy Management in Nigeria.
ABSTRACT
This study examined the “Impact of Corruption on Fiscal Policy Management in Nigeria”. The major objective was to find out the extent to which corruption in the fiscal policy management affects Government expenditure patterns, deficit financing and tax revenue. Research hypotheses were raised and tested through the use of simple regression analysis.
After the test of the hypotheses, it was discovered that corruption in the fiscal policy management, negatively and significantly, affected tax revenue in Nigeria. However, it was found out that corruption positively affected government expenditure and deficit financing but was not significant.
Based on the findings and conclusion, it was recommended that: The funds budgeted on expenditures of Government should be given a time for it to be spent and the balance returned to the Government treasury if any. Government supervisors should be given the time to evaluate the work to ensure that the money was spent within the time and according to purpose.
Deficit financing should be used sparingly. Also, to reduce corruption on the tax revenue, flat rates should be given to one-man business, partnership and companies depending on where they are located, and if anybody has any complaint to make the person should meet tax assessors.
INTRODUCTION
Corruption, in Fiscal Policy Management in Nigeria, can be traced back to the preindependence period when Azikiwe was accused of flagrant abuse of office. He was accused of having considerable personal holding by the injection of two million pounds of public money into African Continental Bank (ACB).
Little wonder, Eyo (1956) in Uche (1997:57) suspected corruption when he moved a motion in the Eastern House of Assembly which requested that: an independent commission of enquiry be appointed forthwith to enquire into the circumstance surrounding the investment and/or deposit of public funds of the Eastern Region totaling nearly 2 million in June 1955 in the African Continental Bank Limited in which Azikiwe, the premier of the Eastern Region had an interest.
However, this was not debated since a related legal case was still pending, whereas Standing Order of the Houses, Section 25 (3), forbade references to be made to any matter on which a judicial decision was pending in such a way as might, in the Speaker’s opinion, prejudice the interests of the parties.
The House’s inability to debate the motion was interpreted differently by the Bank of England, with Loynes asserting that: Dr Azikiwe managed to block Mr Eyo’s first motion by getting the Speaker (an African) to rule it out of order, Dr Azikiwe was then clever enough to bring an action for libel which is pending against Mr. Eyo and the Newspaper which published the latter’s accusations.
his has given the Speaker firmer grounds for rejecting Mr Eyo’s further attempts to discuss the matter in the regional parliament. However, when it was later discovered that it was true that he took the money, he transferred his personal interest to Eastern Region Government (Chuta 2004:21) During the first republic (1960-1966), some political office holders were noted for undisguised personal enrichment.
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