Cost of governance in Nigeria has become a challenge
to development and concern to practitioners and scholars alike in the
field of business and social science research. In the 2010 national
budget of NGN4.6 trillion or USD28.75billion for instance, only a
pantry sum of NGN1.8trillion or USD11.15billion was earmarked for
capital expenditure. Similarly, in 2013, out of a total national budget
of NGN4.92trillion or USD30.75billion, only the sum of
NGN1.50trllion or USD9.38billion was voted for capital expenditure.
Therefore, based on the data sourced from the Nigerian Office of
Statistics, Central bank of Nigeria Statistical Bulletin as well as from
the United Nations Development Programme, this study examined
the causes of high cost of governance in Nigeria. It found out that the
high cost of governance in the country is in the interest of the ruling
class, arising from their unethical behaviour – corrupt practices and
the poor management of public resources. As a result, the study
recommends the need to intensify the war against corruption and
mismanagement of public resources by government officials as
possible solution to overcome the high cost of governance in Nigeria.
This could be achieved by strengthening the constitutional powers of
the various anti-corruption agencies in the area of arrest, investigation
and prosecution of offenders without the interference of the executive
arm of government either at the local, state or federal level.
[1] D. E. I. Gberevbie and F. O. Iyoha, (2007) “Corruption and Cost of
Governance in Nigeria.” In A. S. Akpotor, A. O. Afolabi, M. O.
Aigbokhaevbolo, B. O. Iganiga and O. S. Odiagbe (eds) Cost of
Governance in Nigeria: An Evaluative Analysis. Ekpoma: Ambrose Alli
University Press.pp. 400-418.
[2] O. C. Agu, (2013) “Democracy and the Cost of Governance in Nigeria.”
Journal of Culture, Society and Development.” Vol. 2. pp. 41-51.
[3] S. Ejuvbekpokpo, (2012) “Cost of Governance on Economic
Development in Nigeria.” Global Journal of Management and Business
Research. Vol. 12, Issue 13. pp. 19-23.
[4] O. B. Enwegbara, (2013, September, 1) “High Cost of Governance in
Nigeria.” The Nigerian Punch Newspaper Online. Accessed on 9th
October, 2014 from (http://www.punchng.com/business/globalfinance/
high-cost-of-governance-in-nigeria/).
[5] S. L. Sanusi (2012. December 18) “Cost of Governance.” Thisdaylive
Online. Accessed on 9th October, 2014 from
http://www.thisdaylive.com/articles/cost-of-governance/133904/
[6] C. T. Ofuani, (2013) “High Cost of Running Government in Nigeria.”
Being a lecture delivered at the Conference Organized by Campaign for
Good Governance: Transparency, Equity and Justice. Benizia Hotel,
Asaba, Delta State Capital, Nigeria. 3rd May.
[7] A. U. Osunde, (1993). “Historical Research.” In E. T. Ehiametalor and
M. Nwadiani (eds.) A Guide to Research in Education and Social
Sciences. Benin City: NERA Publications. pp. 33–43.
[8] Douglas, K. and Alejandro, P. (1994) Comparative National
Development: Society and Economy in the New Global Order,
Chapeltill, N.C: University of North Carolina Press.
[9] Egharevba, M. E. and Chiazor, I. A. (2013) Democratic Governance and
Human Development Sustainability in Nigeria, Crawford Journal of
Business and Social Sciences, Vol. 3 (2): 111-148.
[10] UNDP (2010) Human Development Report, Oxford, Oxford University
Press.
[11] UNICEF, WHO, World Bank, the United Nations Population Division
(2010) Levels and Trends in Child Mortality Report, 2010.
[12] National Bureau of Statistics (2013) Population and Vital Statistics,
Abuja.
[13] Sen, A. (1999) Development as Freedom, New York: Random House.
[14] Todaro, M. P. and Smith, S. C (2011) Economic Development, USA:
Pearson Education Limited.
[15] Kaufmann, D., Kraay, A. and Zoido-Lobaton, P. (2000) “Governance
Matters”, World Bank Policy Research Working Paper No.2196,
Washington DC: World Bank.
[16] Kaufmann, D. (2003a) “Rethinking Governance, Empirical Lessons
Challenge Orthodoxy”, Discussion Paper, Washington DC: World Bank
Institute.
[17] Bardhan, P. (2005) Scarcity, Conflicts and Cooperation Essays in the
Political and Institutional Economic Development, Cambridge, MA: The
MIT Press.
[18] UNDP (1998) Human Development Report, Oxford: Oxford University
Press.
[19] World Bank (1989) “Sub-Saharan Africa: From Crisis to Sustainable
Growth: A Long-term Perspective Study”, Washington DC: World
Bank.
[20] Khan, M. H. (2007) “Governance, Economic Growth and Development
since the 1960s”, in Jose, A. O., Jomo, K. S and Rob. V (Eds.) Growth
Divergences: Explaining the Differences in Economic Performance.
Hyderabad, London and Penang: Orient Longman, Zed Books and Third
World Network.
[21] UNDP (2000) Human Development Report, Oxford: University of
Oxford Press
[22] Achebe, C. (1984) The Trouble with Nigeria, Enugu: Fourth Dimension
Publishers.
[23] Landman, T. and Hausermann, J. (2003) Map-making And Analysis of
the Main International Initiatives on Development Indicators of
Democracy and Good Governance, Colchester: Human Rights Centre,
University of Essex.
[24] North, D. (2005) Understanding the Process of Economic Change,
Princeton University Press.
[25] North, D. (1994) Economic Performance Through Time, American
Economic Review 84, June: 359-68.
[26] North, D. (1990) Institutions, Institutional Change and Economic
Performance, Cambridge University Press.
[27] OECD (1995) Participatory Development and Good Governance,
Development Cooperation Guideline Series, OECD.
[28] UNDP (2007) Governance for Sustainable Human Development, A
UNDP Policy Paper.
[29] Economic Commission for Africa (2012) African Peer Review
Mechanism (APRM) Best Practices and Lessons Learned, the Economic
Commission for Africa.
[30] Kaufmann, D., Kraay, A. and Mastruzzi, M. (2005) “Governance
Matters IV: Governance Indicators from 1996-2004”, World Bank
Policy Research Working Paper, Washington DC: World Bank.
[31] Adedeji, A. (2006) A keynote Address at EISA Symposium “Challenges
of Democratic Governance and Human Development in Africa,
Johannesburg, South Africa, 8th - 10th.
[32] Todaro, M. P. (2000) Economic Development, New York: Longman.
[33] V. Nyewusira and K. Nweke (2014) “Nigeria and the attainment of
Sustainable Development in the 21st century”. Mediterranean Journal of
Social Sciences. Mediterranean Center of Social and Educational
Research. Vol. 5, No. 4. MCSER Publishing, Rome-Italy.
[34] V. Nyewusira (2007) “Selected Socio-Political Issues in Nigeria:
Religious Institutions as Agents of Change. Journal of Pedagogy and
Educational Development. Vol. 12, No. 1, pp. 29-36
[35] A. A. Okerengwo (2011) “The Importance of Good Governance”. In M.
Anikpo (ed.) The 2009 ASSU Strike: Issues, Intrigues and Challenges.
Port Harcourt: Freedom Press and Publishers.
[36] B. Aturu (2010) “Nigerian Labour Movement and the Making of an
Authentic Constitutional Framework for the Development of Nigeria.
Lagos.
[37] IIAG (2014) “Nigeria, One of Africa’s Worst Governed Countries”.
Ibrahim Index of African Governance. Premium Times. October 1.
www.premiumtimesng.com
[38] C.T. Ofuani, (2013). “High cost of governance in Nigeria: Impact and
Remedies”. Being a lecture delivered at the conference organized by
Campaign for Good Governance at Benizia Hotel Asaba. May. The
Constitution of the Federal Republic of Nigeria.
[39] G. Fluvian, (2006). “The Rising Cost of Governance in Africa “Journal
of Public Administration, 22(9), 441 – 463.
[40] P. Drucker (2007). “Governance”. Harvard Business Review, 45, No 2,
82- 98.
[41] A. O. Chigozie (2013). Democracy and Cost of Governance in Nigeria.
Journal of Culture, Society and Development- Vol.2, No 2. 41-50
[42] A. Nurudeen and A. Usman (2010).” Government Expenditure and
Economic Growth in Nigeria, 1970-2008: A Disaggregated Analysis”.
Business and Economics Journal, Volume 2, No 4 pp 1-11.
[43] M. A. Adeolu and S.C. O. Evans, (2007). “Analysis of the Cost of
Governance and Options for Its Reduction in Nigeria”. Nigerian Journal
of Economic and Social Studies, Vol. 49, No. 1. Retrieved on 14th
April, 2012.
[44] S.I. Ibi-Ajayi (2002). “Institutions, the missing link in the Growth
Process”. Presidential Address, Nigeria Economic Society.
[45] P.M. Emerson (2005). Corruption, Competition and Democracy.
Working paper, University of Celorado, Denver. [46] International Monetary Fund (2005). IMF- Nigeria consultation. Article
IV concluding statement. IMF External Relations Department, Abuja.
March 8-25.
[47] Aganga, O. (2010). Rising Unemployment Rate is Unacceptable –
Goodluck Jonathan. Business Facts and Figures Magazine September,
2010, p. 15
[48] O. Ogunmade, (2013) $600bn Stolen by Nigerian Elite since
Independence. ThisDay LIVE. Retrieved on 19/6/13
www.thisdaylive.com/article/$600bn-stolen-by-nigerian-elite...2014.
[49] K, Asaju, S, Arome, and, S. Anyio (2014). “The rising rate of
unemployment in Nigeria: the socio-economic and political
implications” Global Business and Economics Research Journal,Vol 3,
No2, pp 12-32.
[50] O. Ibeanu (2008) “Affluence and Affliction: The Niger Delta as a
Critique of Political Science in Nigeria An Inaugural Lecture of the
University of Nigeria, Nsukka. Delivered on February 20, 2008.
[51] O. O. Ajaegbu (2012) “Rising Youth Unemployment and Violent Crime
in Nigeria”. American Journal of Social Sciences & Humanities. Vol. 2
(5), pp. 315-321. September.
[52] UN-Habitat (2008) “Crime and Violence versus Employment
Opportunities in Cities and Towns. The 2nd African Ministerial
Conference on Housing and Urban Development. Abuja, Nigeria.
[53] A. Soyinka, (2014). Untold story of Boko Haram victims Tell Magazine
September 22, No 38 pp. 24-25.
[54] J. Adibe (2009) Pervasive Kidnapping in Nigeria: Symptom of a Failing
State? www.hollerafrica.com
[55] F. Attoh (2012) “Rethinking Crimes and Violent Behaviour in Nigeria:
An Appraisal of the Challenges and Solutions. British Journal of Arts
and Social Sciences. British Journal Publishing Inc.
[56] D.E. Gberevbie (2014) “Democracy, Democratic Institutions and Good
Governance in Nigeria.” Eastern Africa Social Science Research
Review. Vol. 30 (1) January. pp. 134-152.
[57] CBN (2013) Fiscal review of the Nigerian Government. Central Bank of
Nigeria: Quarterly Statistical Bulletin. Vol. 2 (2). Statistical Department:
Garki, Abuja.
[58] UNDP (2013) The Rise of the South: Human Progress in a Diverse
World. Human Development Report. www.hdr.undp.org
[59] UNDP (2011) Sustainability and Equity: A better Future for All. Human
Development Report. www.hdr.undp.org
[1] D. E. I. Gberevbie and F. O. Iyoha, (2007) “Corruption and Cost of
Governance in Nigeria.” In A. S. Akpotor, A. O. Afolabi, M. O.
Aigbokhaevbolo, B. O. Iganiga and O. S. Odiagbe (eds) Cost of
Governance in Nigeria: An Evaluative Analysis. Ekpoma: Ambrose Alli
University Press.pp. 400-418.
[2] O. C. Agu, (2013) “Democracy and the Cost of Governance in Nigeria.”
Journal of Culture, Society and Development.” Vol. 2. pp. 41-51.
[3] S. Ejuvbekpokpo, (2012) “Cost of Governance on Economic
Development in Nigeria.” Global Journal of Management and Business
Research. Vol. 12, Issue 13. pp. 19-23.
[4] O. B. Enwegbara, (2013, September, 1) “High Cost of Governance in
Nigeria.” The Nigerian Punch Newspaper Online. Accessed on 9th
October, 2014 from (http://www.punchng.com/business/globalfinance/
high-cost-of-governance-in-nigeria/).
[5] S. L. Sanusi (2012. December 18) “Cost of Governance.” Thisdaylive
Online. Accessed on 9th October, 2014 from
http://www.thisdaylive.com/articles/cost-of-governance/133904/
[6] C. T. Ofuani, (2013) “High Cost of Running Government in Nigeria.”
Being a lecture delivered at the Conference Organized by Campaign for
Good Governance: Transparency, Equity and Justice. Benizia Hotel,
Asaba, Delta State Capital, Nigeria. 3rd May.
[7] A. U. Osunde, (1993). “Historical Research.” In E. T. Ehiametalor and
M. Nwadiani (eds.) A Guide to Research in Education and Social
Sciences. Benin City: NERA Publications. pp. 33–43.
[8] Douglas, K. and Alejandro, P. (1994) Comparative National
Development: Society and Economy in the New Global Order,
Chapeltill, N.C: University of North Carolina Press.
[9] Egharevba, M. E. and Chiazor, I. A. (2013) Democratic Governance and
Human Development Sustainability in Nigeria, Crawford Journal of
Business and Social Sciences, Vol. 3 (2): 111-148.
[10] UNDP (2010) Human Development Report, Oxford, Oxford University
Press.
[11] UNICEF, WHO, World Bank, the United Nations Population Division
(2010) Levels and Trends in Child Mortality Report, 2010.
[12] National Bureau of Statistics (2013) Population and Vital Statistics,
Abuja.
[13] Sen, A. (1999) Development as Freedom, New York: Random House.
[14] Todaro, M. P. and Smith, S. C (2011) Economic Development, USA:
Pearson Education Limited.
[15] Kaufmann, D., Kraay, A. and Zoido-Lobaton, P. (2000) “Governance
Matters”, World Bank Policy Research Working Paper No.2196,
Washington DC: World Bank.
[16] Kaufmann, D. (2003a) “Rethinking Governance, Empirical Lessons
Challenge Orthodoxy”, Discussion Paper, Washington DC: World Bank
Institute.
[17] Bardhan, P. (2005) Scarcity, Conflicts and Cooperation Essays in the
Political and Institutional Economic Development, Cambridge, MA: The
MIT Press.
[18] UNDP (1998) Human Development Report, Oxford: Oxford University
Press.
[19] World Bank (1989) “Sub-Saharan Africa: From Crisis to Sustainable
Growth: A Long-term Perspective Study”, Washington DC: World
Bank.
[20] Khan, M. H. (2007) “Governance, Economic Growth and Development
since the 1960s”, in Jose, A. O., Jomo, K. S and Rob. V (Eds.) Growth
Divergences: Explaining the Differences in Economic Performance.
Hyderabad, London and Penang: Orient Longman, Zed Books and Third
World Network.
[21] UNDP (2000) Human Development Report, Oxford: University of
Oxford Press
[22] Achebe, C. (1984) The Trouble with Nigeria, Enugu: Fourth Dimension
Publishers.
[23] Landman, T. and Hausermann, J. (2003) Map-making And Analysis of
the Main International Initiatives on Development Indicators of
Democracy and Good Governance, Colchester: Human Rights Centre,
University of Essex.
[24] North, D. (2005) Understanding the Process of Economic Change,
Princeton University Press.
[25] North, D. (1994) Economic Performance Through Time, American
Economic Review 84, June: 359-68.
[26] North, D. (1990) Institutions, Institutional Change and Economic
Performance, Cambridge University Press.
[27] OECD (1995) Participatory Development and Good Governance,
Development Cooperation Guideline Series, OECD.
[28] UNDP (2007) Governance for Sustainable Human Development, A
UNDP Policy Paper.
[29] Economic Commission for Africa (2012) African Peer Review
Mechanism (APRM) Best Practices and Lessons Learned, the Economic
Commission for Africa.
[30] Kaufmann, D., Kraay, A. and Mastruzzi, M. (2005) “Governance
Matters IV: Governance Indicators from 1996-2004”, World Bank
Policy Research Working Paper, Washington DC: World Bank.
[31] Adedeji, A. (2006) A keynote Address at EISA Symposium “Challenges
of Democratic Governance and Human Development in Africa,
Johannesburg, South Africa, 8th - 10th.
[32] Todaro, M. P. (2000) Economic Development, New York: Longman.
[33] V. Nyewusira and K. Nweke (2014) “Nigeria and the attainment of
Sustainable Development in the 21st century”. Mediterranean Journal of
Social Sciences. Mediterranean Center of Social and Educational
Research. Vol. 5, No. 4. MCSER Publishing, Rome-Italy.
[34] V. Nyewusira (2007) “Selected Socio-Political Issues in Nigeria:
Religious Institutions as Agents of Change. Journal of Pedagogy and
Educational Development. Vol. 12, No. 1, pp. 29-36
[35] A. A. Okerengwo (2011) “The Importance of Good Governance”. In M.
Anikpo (ed.) The 2009 ASSU Strike: Issues, Intrigues and Challenges.
Port Harcourt: Freedom Press and Publishers.
[36] B. Aturu (2010) “Nigerian Labour Movement and the Making of an
Authentic Constitutional Framework for the Development of Nigeria.
Lagos.
[37] IIAG (2014) “Nigeria, One of Africa’s Worst Governed Countries”.
Ibrahim Index of African Governance. Premium Times. October 1.
www.premiumtimesng.com
[38] C.T. Ofuani, (2013). “High cost of governance in Nigeria: Impact and
Remedies”. Being a lecture delivered at the conference organized by
Campaign for Good Governance at Benizia Hotel Asaba. May. The
Constitution of the Federal Republic of Nigeria.
[39] G. Fluvian, (2006). “The Rising Cost of Governance in Africa “Journal
of Public Administration, 22(9), 441 – 463.
[40] P. Drucker (2007). “Governance”. Harvard Business Review, 45, No 2,
82- 98.
[41] A. O. Chigozie (2013). Democracy and Cost of Governance in Nigeria.
Journal of Culture, Society and Development- Vol.2, No 2. 41-50
[42] A. Nurudeen and A. Usman (2010).” Government Expenditure and
Economic Growth in Nigeria, 1970-2008: A Disaggregated Analysis”.
Business and Economics Journal, Volume 2, No 4 pp 1-11.
[43] M. A. Adeolu and S.C. O. Evans, (2007). “Analysis of the Cost of
Governance and Options for Its Reduction in Nigeria”. Nigerian Journal
of Economic and Social Studies, Vol. 49, No. 1. Retrieved on 14th
April, 2012.
[44] S.I. Ibi-Ajayi (2002). “Institutions, the missing link in the Growth
Process”. Presidential Address, Nigeria Economic Society.
[45] P.M. Emerson (2005). Corruption, Competition and Democracy.
Working paper, University of Celorado, Denver. [46] International Monetary Fund (2005). IMF- Nigeria consultation. Article
IV concluding statement. IMF External Relations Department, Abuja.
March 8-25.
[47] Aganga, O. (2010). Rising Unemployment Rate is Unacceptable –
Goodluck Jonathan. Business Facts and Figures Magazine September,
2010, p. 15
[48] O. Ogunmade, (2013) $600bn Stolen by Nigerian Elite since
Independence. ThisDay LIVE. Retrieved on 19/6/13
www.thisdaylive.com/article/$600bn-stolen-by-nigerian-elite...2014.
[49] K, Asaju, S, Arome, and, S. Anyio (2014). “The rising rate of
unemployment in Nigeria: the socio-economic and political
implications” Global Business and Economics Research Journal,Vol 3,
No2, pp 12-32.
[50] O. Ibeanu (2008) “Affluence and Affliction: The Niger Delta as a
Critique of Political Science in Nigeria An Inaugural Lecture of the
University of Nigeria, Nsukka. Delivered on February 20, 2008.
[51] O. O. Ajaegbu (2012) “Rising Youth Unemployment and Violent Crime
in Nigeria”. American Journal of Social Sciences & Humanities. Vol. 2
(5), pp. 315-321. September.
[52] UN-Habitat (2008) “Crime and Violence versus Employment
Opportunities in Cities and Towns. The 2nd African Ministerial
Conference on Housing and Urban Development. Abuja, Nigeria.
[53] A. Soyinka, (2014). Untold story of Boko Haram victims Tell Magazine
September 22, No 38 pp. 24-25.
[54] J. Adibe (2009) Pervasive Kidnapping in Nigeria: Symptom of a Failing
State? www.hollerafrica.com
[55] F. Attoh (2012) “Rethinking Crimes and Violent Behaviour in Nigeria:
An Appraisal of the Challenges and Solutions. British Journal of Arts
and Social Sciences. British Journal Publishing Inc.
[56] D.E. Gberevbie (2014) “Democracy, Democratic Institutions and Good
Governance in Nigeria.” Eastern Africa Social Science Research
Review. Vol. 30 (1) January. pp. 134-152.
[57] CBN (2013) Fiscal review of the Nigerian Government. Central Bank of
Nigeria: Quarterly Statistical Bulletin. Vol. 2 (2). Statistical Department:
Garki, Abuja.
[58] UNDP (2013) The Rise of the South: Human Progress in a Diverse
World. Human Development Report. www.hdr.undp.org
[59] UNDP (2011) Sustainability and Equity: A better Future for All. Human
Development Report. www.hdr.undp.org
@article{"International Journal of Business, Human and Social Sciences:68873", author = "Francis O. Iyoha and Daniel E. Gberevbie and Charles T. Iruonagbe and Matthew E. Egharevba", title = "Cost of Governance in Nigeria: In Whose Interest?", abstract = "Cost of governance in Nigeria has become a challenge
to development and concern to practitioners and scholars alike in the
field of business and social science research. In the 2010 national
budget of NGN4.6 trillion or USD28.75billion for instance, only a
pantry sum of NGN1.8trillion or USD11.15billion was earmarked for
capital expenditure. Similarly, in 2013, out of a total national budget
of NGN4.92trillion or USD30.75billion, only the sum of
NGN1.50trllion or USD9.38billion was voted for capital expenditure.
Therefore, based on the data sourced from the Nigerian Office of
Statistics, Central bank of Nigeria Statistical Bulletin as well as from
the United Nations Development Programme, this study examined
the causes of high cost of governance in Nigeria. It found out that the
high cost of governance in the country is in the interest of the ruling
class, arising from their unethical behaviour – corrupt practices and
the poor management of public resources. As a result, the study
recommends the need to intensify the war against corruption and
mismanagement of public resources by government officials as
possible solution to overcome the high cost of governance in Nigeria.
This could be achieved by strengthening the constitutional powers of
the various anti-corruption agencies in the area of arrest, investigation
and prosecution of offenders without the interference of the executive
arm of government either at the local, state or federal level.
", keywords = "Capital expenditure, Cost of governance, recurrent
expenditure, unethical behaviour.", volume = "9", number = "1", pages = "245-8", }
