National Ambition

By David Kieghe

National Ambition: Reconstructing Nigeria, leverages on the example and experience of Nigeria – a sub-Saharan African Country in West Africa – to discuss National Ambition within the context of national social and economic aspirations, and the impact of corruption on governance, development and peace. The book uses credible sources of information from secondary research to offer a reasoned perspective on core issues and contains concrete pragmatic and common-sense proposals and models that Nigeria and other developing countries especially in Africa can adapt to their environment in the short to long term to improve conditions. It addresses issues on Global Justice and the intersections with Sustainable Development Goals – the responsibility of the global community in improving collaboration and cooperation among nations; creating opportunities for local people; reducing inequality and inequity within countries; promoting greater inclusion and interconnection among diverse peoples; and investing in people to strengthen communities and individuals to fully unleashed human potential for a much better world. The book is compelling with positive, progressive and positive-sum messages. It has been written in a way that is simple to read and easy to understand for a wider audience.

Sadly, many people become rich by creating problems. It should be the other way round, solving problems. Grand corruption resulting in ‘state capture’ increases the vulnerability of citizens and inflicts the most pain on the population. Corruption is the single most important threat to Domestic Policies in Nigeria. It distorts the evidence base and misinforms legislations, policies, regulations, programmes, projects and the activities that drive them. It compromises the impact of social interventions; confusing markets; and business environment. It weakens social, economic, political and environmental systems and leaves Nigerians and Nigeria weak. Corruption is the Master Problem, fuelled by excessive greed, patronage and loyalty networks operating at the expense of national interest.

This book proposes the Triple Lock against corruption, contributing new perspectives to addressing fundamental structural deficits that provide the incentives, motivations and opportunities to express corrupt behaviour. Nigeria requires a systematic, holistic and integrated approach to radically reduce the corruption burden that drags Nigeria back. With a large population of young people and huge natural capital, Nigeria potentially has unique assets and opportunities to build a fairer and more progressive country and to tap into the hardwork, ingenuity and resilience of its diverse population. But Nigeria will have to work differently to realise THE FULL POTENTIAL for which it is capable.

Working differently would mean unlocking value chains currently locked-in in all the sectors of the Nigerian economy, to improve quality and drive demand and supply of locally made goods and services; promoting enterprise; creating decent jobs; pursuing progressive taxation policies; and building a self-sustaining country that can pay its way and voice its own worldview. The possibilities are enormous, but first, Nigeria needs a smarter government and governance intelligence that knows every Nigerian to invest in them as most important assets; drive efficiency and innovation; operating transparent and accountable systems; joining up government and reducing silo-vertical working that promotes opacities; removing bottlenecks that stifle creativity and ideas to markets; reducing inequalities and inequities; ensuring social justice and solidarity; and enabling the best of Nigeria to emerge and to altogether, thrive. This is the big challenge right now, to define the future!

• Language: English
• Publisher: Legend Press
• Release date: Nov 15, 2016
• ISBN: 9781787191976

Book preview

CORRUPTION

Threat to the Nation State

Sadly, many people become rich by creating problems. It should be the other way round, solving problems. Grand corruption resulting in ‘state capture’ is the single most important threat to Domestic Policies in Nigeria. It distorts the evidence base and misinforms legislations, policies, regulations, programmes, projects and the activities that drive them. It is the Master Problem.

NATIONAL AMBITION

Reconstructing Nigeria

DAVID KIEGHE

Published by New Generation Publishing in 2016

Copyright © Dr. David Kieghe 2016

First Edition

ISBN 978-1-78719-105-1

The author asserts the moral right under the Copyright, Designs and Patents Act 1988 to be identified as the author of this work.

All Rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means without the prior consent of the author, nor be otherwise circulated in any form of binding or cover other than that which it is published and without a similar condition being imposed on the subsequent purchaser.

www.newgeneration-publishing.com

This book offers hope to millions of Nigerians who very rightly desire and deserve a better country that is creating opportunities for every citizen particularly young people.

A Nigeria that is reducing inequality, inequity, poverty, disease, hunger and untold human sufferings. A country that is united, in which Nigerians feel safe, secure and are inspired. A Nigeria in which the rest of humanity is welcomed to visit and to invest in.

This book appeals to those who perpetrate patronage and loyalty networks as instrument for corruption at the expense of the Nigerian nation state with a compelling message that in the end, corruption produces a ‘no win’ situation for everyone.

This book provides additional insights on, shared ownership, of bold national ambition, of social and economic goals and targets, as the way to drastically reduce grand, political, institutional, bureaucratic, pervasive, systemic and endemic corruption and to win.

This book also shares important principles that other developing countries particularly in sub-Saharan Africa can adapt against corruption in their own countries.

Acknowledgements

This book acknowledges global efforts against corruption and the many interventions to reduce the impact of corruption on especially the poor and vulnerable. The contributors to this book have been motivated and inspired by the efforts of all those who have continued to work towards a better world. Many thanks, to Dr. Sylvia Kama-Kieghe for critical reviews of the manuscript and for providing initial proofreading and editing. Thanks also to Prof. Gus John and Dr. Adegbola Ojo for contributing ideas and engaging in discussions at various times within the past six years that have helped to crystallise some of the thoughts expressed in this book. Also thanks to Dr. Mustapha Bintube for engaging conversations on the practical realities of corruption in Nigeria and offering additional perspectives that challenge mainstream thinking.

We acknowledge the contributions and guidance of many others who assisted in financing and shaping research to improve the understanding of the complex phenomenon of corruption in Nigeria and to focus the narratives contained in this book on solutions to the corruption malady of common concern, to which every Nigerian is exposed, are vulnerable and losers. This book has been written in the hope that the contents in this book would provide additional insights and new thinking to contribute significantly to current debates and the growing efforts against corruption to improve governance and bring development and peace dividends to the millions of Nigerians and people all over the world who have been severely affected by corruption and who yearn for a better Nigeria and a better global order. This would justify all of the efforts and sacrifices that have been invested in the research and development of this book.

Preface

Corruption is the abuse of entrusted power for private gain (Transparency International). The United Nations’ working definition of corruption is, the misuse of a public or private position for direct or indirect personal gain. Common to both definitions is breach of trust and abuse of power for personal gain. This may be in the public, private and social sector. The United Nations (UN) Office on Drugs and Crimes describes corruption as:

a complex social, political and economic phenomenon that affects all countries. Corruption undermines democratic institutions, slows economic development and contributes to governmental instability. Corruption attacks the foundation of democratic institutions by distorting electoral processes, perverting the rule of law and creating bureaucratic quagmires whose only reason for existing is the soliciting of bribes. Economic development is stunted because foreign direct investment is discouraged and small businesses within the country often find it impossible to overcome the ‘start-up costs’ required because of corruption.

While no country in the world can claim to be corruption-free, the scale and impact of corruption in some countries (especially on the poor and vulnerable) can be more severe than in other countries. And yet, corruption fuels illegal financial flows from poor developing countries to rich countries and tax havens. The result is high rates of poverty, disease and crime – dangerous mix to the bottom in poor countries. In recognition of the damage that corruption causes to local economies and the dangers to global order, the United Nations Convention against Corruption was adopted by the United Nations General Assembly on the 31st of October 2003. It came into force on the 14th of December 2005. Nigeria signed the Convention on the 9th of December 2003 and ratified it on the 14th of December 2004. The Convention provides for the prevention and criminalisation of corruption, international cooperation against corruption and to recover assets which are proceeds of corruption, across national borders. The United Nations observes the 9th of December every year as World Anti-Corruption Day.

More recently illicit financial flows (IFFs) have been the subject of national and global discussions, especially as it hurts the economies of developing countries but also as it seeks to hide enormous wealth in tax havens. The High Level Panel on IFFs (HLP-IFFs) from Africa (commissioned by the African Union, worried about how African countries would meet the goals and targets in the Millennium Development Goals by 2015), launched its report: track it, stop it, get it, on February 1, 2015 at the United Nations Conference Center in Addis Ababa, Ethiopia. The report revealed an estimated US$50 billion yearly IFFs from Africa. The HLP concluded that Africa is indeed a net creditor to the world, considering that Official Development Aid (ODA) to Africa was US$46.1 billion in 2012. Related studies by the Global Financial Integrity (GFI) suggest that about 45% of IFFs end up in international financial centres and 55% in developed countries, mostly facilitated by large banks in the United States of America, United Kingdom, Singapore, Switzerland and other tax havens from where such ‘dirty’ monies are integrated and converted into ‘clean’ money or assets.

The purpose of this book is to contribute in a progressive way to solving what is a major development challenge limiting social progress in many developing countries especially in sub-Saharan Africa and Nigeria in particular. It is the hope that the information provided in this book would add to the understanding of the root causes, nature, scope and scale of corruption in Nigeria and that the strategic and operational level proposals contained in this book would complement ongoing efforts against corruption to improve the wellbeing of Nigerians. This book advocates that government should urgently address fundamental structural deficits to enable the ‘triple-lock against corruption’ to gain significant systemic traction. The ideas in this book have generally been shaped by studies on Nigeria but the book contains general principles that can be adapted to suit contexts in other countries with similar structural and systemic weaknesses. Deliberate efforts have been made to reduce jargons and to simplify complex issues into simple-to-read and understand English. This book is intended for a very wide audience of victims of corruption who want to improve their understanding of the phenomenon. This book is suitable for youths, students, academics, entrepreneurs, civil society organisations, government and international development officials, politicians, political parties, policy-makers and implementers, labour unions and leaders, traditional and religious leaders, the media, philanthropists, corporate citizens, social and political analysts, etc.

Although Nigeria is rich in natural resources and has huge agricultural potential, it is its population size and structure that presents Nigeria greater opportunities and possibilities. With a population currently estimated at over 180 million and projected to reach 440 million by 2050, Nigeria could be the third most populous country in the world, behind China and India (at current population growth rate of 2 to 3%). Surely, Nigeria should be more ambitious to project its worldview. But first, Nigeria has to be strong at home. Nigeria must harness its growing population for economic boom otherwise it can become a population bomb. This will require investing in Nigerians to become more productive and active to participate in diverse value chains which are currently locked-in. A coherent and bold national social and economic strategy is what Nigeria needs to make the transition from its low level of development into one of the best countries in the world on social, economic and development indices.

Corruption currently weakens Nigeria’s very foundation and threatens Nigeria’s own existence as a nation state. To appreciate how bad corruption is in Nigeria think long enough about the comment: The fight against corruption is for the soul of Nigeria. Corruption is a complex phenomenon motivated by excessive greed seeking self-interest to the extreme at the expense of other people. It attacks the very structures that support living in a community, plural and rules-based society and that makes citizenship of a country attractive. Corruption disrupts socioeconomic balance; erodes trust and confidence between citizens, citizens and government, citizens and businesses, businesses and government, businesses and businesses, etc., and weakens governance.

While there are many classifications, categories and types of corruption by researchers and commentators, it is perhaps grand corruption (state capture) which is most descriptive and reprehensible, for it allows impunity and it is indifferent to and condones other forms of corruption. Grand corruption occurs at the highest level of governance, abusing state authority and power for private gains by compromising governance. It is the failure in governance that makes other types and descriptions of corruption (e.g. political, institutional, systemic, pervasive, petty, corporate, etc.) possible, inflicting the most pain on the masses – the very people that governance is supposed to serve and protect in the first place. This recognises especially bribery which can be against the rules, eroding rules and regulations intended as safeguards to the public and ecosystem; or according to the rules, extorting vulnerable citizens whose survival with their families is already a daily struggle and therefore face double tragedy from such acts of corruption. Corruption allows nepotism and favouritism to fester and thrive, both of which compromise merit, fairness and equal opportunity; and promote patronage, cronyism and mediocrity. Corruption is the main reason why investments in youths and human capital development in Nigeria is poor. It is one of the main reasons why the level of foreign direct investments in Nigeria is low. It is why Nigeria and Nigerians cannot currently benefit optimally from the opportunities associated with globalisation. Corruption is the main impediment to achieving Sustainable Development Goals (SDGs) by year 2030. Corruption is partly responsible for insurgency, militancy and separatist movements in Nigeria.

In spite of all of the anti-corruption laws and agencies in Nigeria (in compliance with recommendations from global bodies and agreements), the evidence suggests that the level of corruption in Nigeria is still comparatively, considerably and intolerably high. This is because corruption is behavioural seeking self-interest to the extreme and at the expense of other people. Current laws, policies, programmes and agencies in Nigeria do not address human behaviour motivated by narrow self- and group-interests. Studies suggest very strong positive correlation between Corruption Perception on the one hand; and Governance, Human Development and Peace on the other hand. Nigeria therefore urgently needs a coherent national social and economic strategic response against corruption to improve governance and human development and to build sustainable peace amongst Nigeria’s diverse groupings.

Currently, far too many Nigerians do not ask what they can do for Nigeria. They are more interested in what they can get out of Nigeria. The Nigerian nation state and ‘fellow Nigerians’, who are not part of their subgroups, matter less. Patronage and loyalty networks, sycophancy, cronyism, nepotism, favouritism, clientelism, etc., are the ‘ways’ by which a few Nigerians control the ‘means’ of state to continue to exploit Nigeria and Nigerians, and become ‘powerfully rich’ from the rent and not from the hard work and innovation that solve real problems and create value chains to empower Nigerians. It is the very culture and behaviour that promote and maintain patronage and loyalty networks to ‘strong individuals’ and subgroups with intentions and motivations that are in conflict with those of the Nigerian nation state that make corruption dig so deep. It is the strong patronage and loyalty networks (not rooted on progressive ideas), which hold many Nigerians [and indeed Nigeria] hostage that require a holistic approach by the Nigerian nation state to free itself and vulnerable Nigerians to transfer their loyalty and patriotism to the Nigerian nation state.

Chapter one of this book explores the corruption phenomenon and context tracing corruption to its Latin origins, corruptus (which when translated means to destroy; spoil; seduce; bribe), corrumpere or rumpere (which when translated means to ruin to break; rupture). It is the case that corruption is generally something bad and destructive of the social fabric that binds society together because it erodes trust and confidence among individuals and communities; and in systems of governance both on the part of leaders and on the part of followers. For a country as diverse as Nigeria, it is what corruption does to the social fabric that is devastating to the nation state. Corruption is the number one reason why many countries are poor – yes, countries such as Nigeria with great potential.

In poor countries, corruption makes conditions worse for the poor, women, children and the most vulnerable. Corruption is the reason why poverty [in the midst of plenty] is so bad and frustrating in Nigeria and why over 10 million Nigerian children are out of school (mindful of the development gaps that this creates and the social, economic and security dangers as likely consequences). It is the reason why the health outcomes for women and children in Nigeria are some of the worst in the world. Corruption pays no tax, yet it loots tax revenue from the ‘real’ economy to run a parallel economy that threatens Nigeria. It discourages the inflows of Foreign Direct Investments (FDIs) that could create employment opportunities and expand the tax base. Systemic corruption leaves everybody (perpetrators and victims) worse off, a no-win situation that is like ‘Mutual Assured Destruction’, in the end. The chapter ends with introduction to the meanings of some of the common terminologies used in discussing corruption by some authorities.

Chapter two discusses illicit financial flows (IFFs). According to the Global Financial Integrity (GFI) IFFs is illegal movements of money or capital from one country to another. The chapter discusses IFFs using various studies and reports on the global scale of IFFs as largely a problem of developing countries. Unfortunately, until more recently, African leaders have not made the moral, economic and development case against IFFs compelling enough. Most of the IFFs come from mispricing of invoices by multinationals not observing arm’s length principles and information asymmetry in the extractive industries. Sadly, evidence from studies suggests that Nigeria tops the list of countries in Africa and was number 7 of the 20 top countries between 2001 and 2010 that lost money to IFFs – about US$129 billion.

Chapter three examines Nigeria corruption landscape beyond numbers and traces the phenomenon to the various cultures in Nigeria that promote patronage networks and loyalty to individuals and subgroups at the expense of the nation state. It makes the point that the discovery of crude oil led to easy money from rent at the expense of the environmental degradation in the Niger Delta from poor oil and gas operational practices. The ‘rentier economy’ from crude oil and gas transformed sociocultural patronage and loyalty networks from ethnic, political and religious subgroups into national politics redefining and lowering the bar for corrupt behaviour in governance with negative implications on human development and peace.

Chapter four considers the high level of corruption in Nigeria as an existential threat to the nation state. This is because corruption is gradually destroying the political, social and economic superstructures that support the Nigerian nation state. Corruption is weakening the ability of the nation state to deliver on its constitutional responsibilities to all Nigerians and therefore leaves most Nigerians vulnerable to ‘the interests’ of ‘strong individuals’ and ‘subgroups’ instead of being patriotic to a country that promotes a unified national identity.

Chapter five makes the case for national ambition as a strategic response against corruption. The chapter considers national ambition not as an extreme right-wing, ethno-centric, protectionist, ideological and hegemonic movement but national ambition in a diverse – multi-ethnic, multi-religious, multicultural and multilingual – Federal Republic of Nigeria to have one of the best education and healthcare systems, transportation and social housing, and democracy in the world. The chapter considers national ambition from the point of view of inspiring Nigerians to effectively harness and deploy abundant natural resources and talents that Nigeria is endowed into building a country that best serves all Nigerians and to compare and compete with the very best in the world, learning from the experiences of other countries.

Chapter six looks at integrated practical solutions against corruption. It addresses the environmental support to the ‘Triple-Lock against Corruption’ to complement bold national ambitious social and economic goals. Addressing environmental factors would provide the technological, moral and legitimate authority to government to convincingly ‘fight and win’ against corruption.

Chapter seven looks at what Nigeria can achieve without corruption given its human and natural resources, but also its relatively large Diaspora capital in converting ‘brain drain’ to ‘brain gain’ and building cultural, political and economic bridges across the world; and creating the right environmental conditions with a coherent national strategy to attract the right mix of domestic and foreign investments integrated into the real economy. This will require investing in young people, human capital development and opening up value chains currently locked-in to create jobs and opportunities.

Ministries, Departments and Agencies (MDAs) of government would need to think and work differently in ways that are industry/sector minded and performance driven – managerial bureaucracies rather than administrative bureaucracies – with more emphasis on outcomes rather than just processes that drive and justify wasteful expenditure for personal gains. The Civil Service would have to quickly evolve into an elite Professional Service that is based on merit and that understands its mandate and mission as the engine and powerhouse of government to continuously deliver on its responsibilities. The wages and conditions of service of Civil Servants would have to be improved upon.

It is very possible to reduce the corruption load that continues to burden and impede Nigeria from effective governance, human development and peace. It is only when the corruption load is significantly reduced that shared prosperity would enhance social progress in Nigeria. Only then would Nigerians be truly proud of their country – a country that is together strong at home and respected abroad. Corruption at current levels in Nigeria is the single most important threat to domestic policies, undermining Nigeria’s foreign policy.

Domestic policies are only as good as the benefits that citizens derive. These benefits would resonate with the citizen’s constitutional rights and access to opportunities – improving living conditions and life chances – within the spirit of good neighbourliness in community. Pervasive corruption weakens the evidence base of domestic policies (often not integrated) and constrains implementation to benefit the few at the expense of the majority of citizens.

Domestic policies in Nigeria have continued to widen inequalities and inequities, stretching to near breaking-point the very social fibres that should connect and unite Nigerians in diversity. Weak social fabric would make it easier for Nigerians to pull apart along primordial fault-lines in the process. Corruption blunts and lowers the bar for national ambition, limits national potential and steals away a better future for hardworking Nigerians. Corruption could leave Nigeria more and more vulnerable if left unchecked. This could be perilous.

Foreign policy should project the great achievements of Nigerians; Nigeria’s rich and diverse culture and history as a people; Nigeria’s contributions to world peace and security; and Nigeria’s great potential among the comity of nations to attract the right attention, commentary and actions to Nigeria. The implementation of the right domestic policies would make Nigeria socially and economically stable and strong at home, to support and align Nigeria’s foreign policy in times of rapid global change and challenges.

Nigeria’s foreign policy building blocks should have elements that express Nigeria’s willingness and ability to compete and collaborate with the rest of the world; and that projects Nigerians among the very best of our common humanity, to define national strength. Nigeria is as strong as its weakest links. Implementing the right integrated domestic policies at the heart of a coherent national strategy would make Nigeria altogether strong at home and respected abroad. The future of Nigeria is inextricably linked to pro-people, pro-poor, progressive domestic policies to provide a strong support for its foreign policy.

Dr. David Kieghe

Contents

Acknowledgements

Preface

Chapter One: Corruption: The Phenomenon and Context

Chapter Two: Understanding Illicit Financial Flows

Chapter Three: Corruption Landscape Beyond Numbers

Chapter Four: Corruption: Threat to Nation State

Chapter Five: National Ambition and Corruption

Chapter Six: Corruption: Integrating Practical Solutions

Chapter Seven: What Nigeria Can Achieve

List of Acronyms

Index

Appendix

Bibliography

Chapter One

Corruption: The Phenomenon and Context

What people generally perceive as corruption exists all over the world and has been as long as the emergence of human societies. As human beings, communities and societies have become increasingly interconnected and interdependent; there have been competing interests and corruption has become more pronounced in complexity and sophistication. Corruption exists in global sports and markets. Corruption is a big problem in most countries.

Modern societies are ecosystems in which resources are available for human needs. It is important to maintain a fair and responsible balance in accessing resources and opportunities of general and communal concern. But there are multiple interests as there are individuals and subgroups within a given population. The challenge is often to what extent the different interests are reconciled rather than conflicting, and also to what extent are the interests of individuals and subgroups integrated into that of the larger population.

While this may paint a simpler picture of what is a complex phenomenon, it is at the very foundation of corruption, and the ways that enable it, motivated by excessive greed seeking self-interest to the extreme at the expense of other people and society. Corruption attacks the very structures that support living in a community and that makes citizenship of a country attractive. Corruption distorts, disrupts and can inevitably destroy the socioeconomic balance of a population. Corruption erodes trust and confidence between citizens; citizens and government; citizens and businesses; businesses and government; businesses and businesses; etc., and weakens governance. Corruption can therefore be described as the master-problem.

The United Nations (UN) Office on Drugs and Crimes describes corruption as:

a complex social, political and economic phenomenon that affects all countries. Corruption undermines democratic institutions, slows economic development and contributes to governmental instability. Corruption attacks the foundation of democratic institutions by distorting electoral processes, perverting the rule of law and creating bureaucratic quagmires whose only reason for existing is the soliciting of bribes. Economic development is stunted because foreign direct investment is discouraged and small businesses within the country often find it impossible to overcome the ‘start-up costs’ required because of corruption.

Corruption diverts the financial and material resources that would have been used to build hospitals, schools, houses, roads, etc., for personal use. It is a personal decision most often motivated by greed.

The United Nations observes the 9th of December every year as Anti-Corruption Day.

Corruption is no doubt a dangerous phenomenon. Improving our understanding of what corruption truly is would enable better perspectives, and broader and local contexts. We will explore a few definitions of corruption by some authorities and then gravitate more towards practical and functional definitions and examples that make corruption so real and not just an abstract academic subject-matter for endless debates. It is however important that academic research on corruption continues to improve the understanding of behaviours, dimensions and the environments that serve corruption, to better inform, local and global level solutions to minimise corruption.

According to historian Heidenheimer, corruption is breaking the rules pertaining to a certain office, it can be defined economically, and it can be defined as acting against general interest. James C. Scott a political scientist and anthropologist thought of corruption as acting against the laws pertaining to it, or acting against what the public opinion deems integrity, or, again, acting against general interest. The law