Teaching Comparative Government and Politics

Thursday, February 11, 2016

Corruption and politics

If a president is serious about fighting corruption, he/she needs to know what the problems are and how big they are. Nigeria looks to be serious.

Corruption Will Cost Nigeria 30 Percent of GDP By 2030 - Report
A new study by professional services firm, PriceWaterhouseCoopers, PwC has shown that Nigeria will lose 30 per cent of its GDP to corruption by 2030.

Country and Regional Senior Partner, West Market Area, PwC, Mr. Uyi Akpata disclosed this when he led a PwC team to submit the report to the Vice President, Yemi Osinbajo at the Presidential Villa, Abuja…

Akpata said: "The results of the study show that corruption in Nigeria could cost up to 37% of Gross Domestic Products (GDP) by 2030 if it's not dealt with immediately. This cost is equated to around $1,000 per person in 2014 and nearly $2,000 per person by 2030. The boost in average income that we estimate, given the current per capita income, can significantly improve the lives of many in Nigeria."…

PwC's Chief Economist and co-author of the report, Dr Andrew S Nevin… said: "We estimate the 'foregone output' in Nigeria since the onset of democracy in 1999 and the 'output opportunity' to be gained by 2030, from reducing corruption to comparison countries that are also rich in natural resources.The countries we have used for comparison are: Ghana, Colombia and Malaysia."

The report… listed three dynamic effects of corruption to include; Lower governance effectiveness, especially through smaller tax base and inefficient government expenditure.

PwC studies estimate Nigeria's tax revenues at 8% of GDP, which is the lowest for comparison countries; weak investment, especially Foreign Direct Investment explaining that it's harder to predict and do business under such circumstances. Also affected is lower human capital as fewer people, especially the poor, are unable to access healthcare and education.

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