The Lagos Chamber of Commerce and Industry (LCCI), the Center for International Private Enterprise and the African Export–Import Bank (Afrieximbank) have suggested ways of combating corruption in Nigeria and Africa to save the economies from collapse.
According to the LCCI, there is a need to deploy a broad coalition encompassing government, private sector stakeholders, the press, business community and general public to address corruption in Nigeria.
The chamber said that at national level, specialised agencies and anti-corruption bodies can be extremely effective, provided they have sufficient independence, authority, and resources to function effectively, but opined that the government actions alone will not be effective.
Toki Mabogunje, president, LCCI, said at the Africa Business Ethics Conference (ABEC) tagged ‘Tackling Corruption to Reduce Poverty, Unemployment and Insecurity in Africa’ that corruption is one of the biggest developmental challenges facing African economies, stressing that these economies cannot bear the increasing cost of corruption, which impedes socioeconomic development and minimise their capacity to lift their citizens out of poverty and create opportunities for the low-income segment of the society.
Mabogunje said the Sub-Saharan African region ranks lowest among global regions in the Corruption Perception Index (CPI) with an average CPI score of 32 out of 100.
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“Once corruption becomes entrenched, its negative effects multiply. It induces cynicism because people begin to regard it as the norm. It undermines social values because people find it easier and more lucrative to engage in corruption than to engage in legitimate employment,” she said.
“It limits economic growth because it reduces the amount of public resources and discourages private investment and savings. Corruption has played a major role in causing serious damage to the economic and social landscape in African countries. This, in turn, has undermined social welfare and also investment in public services with eventual negative impact on the quality of lives,” she stated.
She noted that the impact of corruption cannot be underestimated, stressing that according to Transparency International, 43 percent of Africans are living in poverty while over $50 billion worth of stolen assets flow out of Africa every year.
“The low level of development in Africa is reinforced by extensive corruption schemes, which scare off investors and discourage development. Effectively addressing corruption in African countries has become a development imperative,” she noted.
She further explained that strategies to tackle corruption must be realistic and achievable and tailored to the specific needs of each African country.
Andrew Wilson, executive director, CIPE, said the amount of money lost to corruption annually is enough to provide 24 hours electricity every day to every citizen in Africa for the next three years.
He said the United Nations estimates that $3.6 trillion is lost to corruption, maintaining that the World Bank projects that corruption adds 10 per cent to the cost of doing business.
He said although corruption is a global problem, the impact in Nigeria has far reaching consequences on the prospects of a nation and the quality of life of every citizen.
He noted that inconsistent government policies facilitate corruption by creating a perception that bribes are more efficient ways to get things done.
He said an efficient, transparent and accountable administration would boost innovation and growth of the Nigerian economy, control corruption and eliminate waste such as nepotism, abuse of authority, trading influences and other practices that undermine economic development.
He said combating corruption is a collective effort, pointing out that the business community must be engaged in tackling corruption.
Delivering his keynote address, Idrissa Diop, compliance director, African Export Import Bank (Afreximbank), said corruption does not only increase the cost of production but also increases the level of uncertainty in the African economies, leading to decreases the investment, financial, physical and human capital.
He explained that corruption reduces the productivity of resources and undermines democracy by diverting resources of disadvantaged people, damages rule of law, and social justice.
He said in the Continent Free Trade Area (CFTA), Africa is arming itself with a tool for future prosperity, but stressed that the success of CFTA is largely dependent on the continent’s ability to combat corruption and illicit capital flows.
