March 2018 Vol. 6 No.2

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Original Research Article

Corruption, Entitlement Rights and Elite Capture: Evidence from Nigeria

Kenneth O. Ahamba^*, Onyebuchi Onwube and Chima N. Durueke

Department of Economics and Development Studies, Federal University Nudfu-Alike, Ikwo, Nigeria

*Corresponding Author’s E-mail: ahamba.kenneth@funai.edu.ng or kendrys4jesus@yahoo.com
Tel.: +234 7035767251

Accepted March 20, 2018

Abstract

The study examined corruption, entitlement rights and elite capture in Nigeria. The main objectives of the study were to analyse corruption, entitlement rights and elite capture and how it impacts on the growth and development of the economy. The study made use of two major analytical techniques. The first was purely descriptive (statistical) while the second was OLS multiple regression. From the descriptive (statistical) analysis carried out in sub-section 2.2, corruption and elite capture undermine the entitlement rights of Nigerians and lead to inefficiency and under-capacity utilization of public enterprises. The second aspect of the analysis which made use of three models was empirical and limited to the impact of corruption on economic growth and development due to data problem on elite capture and entitlement rights. The empirical findings of model 1 revealed that CPI, CR, RCR and IFFs impacted negatively and significantly on GDPPGR. That of model 2 showed that CPI and RCR impacted positively and significantly on UEMPR whereas that of CR was negative and insignificant. Model 3 results revealed that CPI and CR had a negative and insignificant relationship with INFR whereas that of RCR was positive and insignificant. The study carried out several diagnostic tests of model adequacy and the results revealed that the models were well specified and the results obtained are plausible. In the light of the findings, the study concludes that corruption negatively and significantly impacts on economic growth and development of Nigeria and recommends among others that the problem of corruption should be tackled from all angles and the Nigerian government should revoke the sale of those privatized public enterprises that did not follow due process as they were captured mainly by the political elites; and make them operational at optimal level.

Keywords: Corruption, Entitlement rights, Elite capture, OLS, Nigeria