(Free format)  Chapter one 

Introduction

1.1 Background to the study

1.2 Statement of the problem

1.3 OBJECTIVE OF THE STUDY       

1.4 RESEARCH QUESTIONS

1.5 HYPOTHESES

1.6 SIGNIFICANCE OF THE STUDY

1.7   SCOPE OF THE STUDY

1.8 LIMITATION OF STUDY

1.9 OPERATIONAL DEFINITION OF TERMS

CHAPTER TWO Literature Review 2.1 Introduction

Corruption continues to be one of the biggest problems facing good governance in Nigeria since it greatly undermines the confidence of citizens in government institutions. Forms of corruption include bribery, theft from the treasury, nepotism, inflated contracts, and misappropriation of power for personal benefit. With time, corruption has led to poor institutional performance and service delivery in addition to declining confidence in the government among the citizenry.

As shown in the recent literature, corruption in Nigeria is widespread and deeply rooted, impacting both public and private sector relations while influencing the perception of the state among the citizens as well (Transparency International, 2024). Public trust, defined as citizens' trust in government institutions to pursue activities in the interest of the citizenry, has been on a continuous decline because of the prevalence of corruption and lack of accountability (World Bank, 2024).

In this chapter, recent literature (from 2024 onwards) regarding the nexus between corruption and public trust in Nigeria will be reviewed.

2.2 Conceptual Review of Corruption in Nigeria

Corruption in Nigeria is commonly perceived to be more of a structure and systematic problem, unlike individual acts of misconduct. As per the UNODC, corruption in developing countries like Nigeria can exist because of weak institutions, inadequate implementation of laws, and lack of transparency in governance (UNODC, 2024).

Corruption exists in the procurement process, revenue generation system, security apparatuses, and political structures in Nigeria. Moreover, public sector corruption has been a serious barrier to development in Nigeria. It is believed to have diverted funds set aside for infrastructure development, health, and education to other areas for personal gain (AfDB, 2024).

Furthermore, the latest evaluation on governance shows that corruption in Nigeria can be associated with political clientelism. It implies that public positions are offered on the basis of loyalty, not merit, resulting in low-level institutional effectiveness (International Crisis Group, 2024).

2.3 Public Trust in Government Institutions

Public trust is one of the most important elements of democratic governance as it is what helps to determine the extent of citizens' compliance with laws, tax payment, and participation in governance processes. But in the case of Nigeria, public trust in government institutions has remained quite low due to the perception of rampant corruption and poor performance in service delivery.

World Bank Governance Indicators (2024) reveal that Nigeria is among the countries that perform poorly in government effectiveness, rule of law, and control of corruption. These outcomes reveal that the public is not happy with institutions such as the police judiciary electoral agencies, and local government authorities.

Research indicates that citizens' perception of corruption in government institutions diminishes their willingness to cooperate with those institutions which, in turn, results in weaker governance outcomes (OECD, 2024). In Nigeria, this lack of trust is manifested by low voter turnout, unwillingness to pay taxes, and dependence on non-formal systems of justice and service delivery..

2.4 Casual Relationship Between Corruption and Public Trust

Corruption and public trust in government institutions are shown to be negatively correlated in recent literature. Corruption decreases transparency and accountability, causing citizens to regard government as self-serving, not people-serving.

In a 2024 governance report by Transparency International, it was found that countries with high rates of corruption were associated with low institutional trust and poor civic engagement. In Nigeria, multiple cases of misuse of public money and siphoning of humanitarian aid have resulted in erosion of citizens’ faith in government institutions (Transparency International, 2024).

Moreover, research suggests that corruption leads to a vicious circle of distrust, as distrust among citizens lowers their probability of whistleblowing on corruption and cooperation with officials, perpetuating corruption (UNDP, 2024). This circle can be observed in Nigeria’s public service delivery systems due to inefficiency and corruption.

2.5 Factors responsible  for  Corruption in Nigeria

Various research findings point out some significant factors contributing to corruption in Nigeria. Such factors include poor institutional structure, poor pay for civil servants, poor transparency, and poor enforcement of anti-corruption legislation.

According to the African Development Bank (2024), the lower pay for public sector employees encourages them to engage in illegitimate ways of earning extra money. Equally, poor supervision systems enable public officers to mismanage budgets and contracts. Corruption is also influenced by political intervention in legal and law enforcement institutions. According to the International Crisis Group (2024), political leaders may sometimes influence the prosecution process, hence making the deterrence mechanism ineffective. Furthermore, the culture of bribery in daily activities also promotes corruption.

2.6 Impact of Corruption on Government Institutions

Corruption can potentially have an incredibly high impact on government agencies in Nigeria. Firstly, it decreases the level of effective operations; secondly, it changes the way policies are carried out; and thirdly, it damages the quality of service offered to the public.

With regard to the healthcare sector, corruption generally causes the wrong distribution of resources that lead to insufficient facilities and consequently, bad results in patient care. On the other hand, in the case of education, very frequently the money intended for school buildings and teacher development is taken for other purposes with the consequence that the quality of education is compromised. Likewise, as regards the building of new structures, fraudulent activities such as contract price increase and project abandonment are the daily practices (World Bank, 2024).

Corruption has an adverse effect on security agencies as well, by the way of reducing the level of their operational effectiveness. Theft of the funds allocated to security leads to the weakening of the capability of the various agencies to handle the menace, and thus the level of insecurity in the country will be made even worse.

2.7 Anti-Corruption Efforts and Institutional Reforms

In Nigeria, several measures have been put in place to ensure transparency and restore public trust. They include the creation of bodies like the Economic and Financial Crimes Commission (EFCC), Independent Corrupt Practices Commission (ICPC), and the use of the Treasury Single Account (TSA).

The recent reforms have also emphasized digital governance frameworks to minimize human intervention in public financial management. According to the World Bank (2024), digital payment mechanisms and online procurement platforms have helped increase transparency in government operations.

Nevertheless, there are still many problems. Poor enforcement of corruption control measures, political influences, and delayed judicial processes are among the factors impeding development in the country.

2.8 Theoretical Framework

The present study has its foundation on the Institutional Theory and the Social Contract Theory.

According to the Institutional Theory, the performance of any institution is determined by the structure, rules, and processes used in that institution. The lack of strong institutions in Nigeria causes corruption, thereby making people lose faith (North, 2024). The existence of strong institutions makes it easier to deal with corruption and enhance governance performance.

The Social Contract Theory entails the agreement or deal made by citizens and the government in which individuals give up some rights in return for protection and public goods. The inability of the government to offer these goods to citizens because of corruption leads to a breach of the social contract (UNDP, 2024).

2.9 Summary of Literature Review

According to the review of literature conducted, it becomes clear that corruption is one of the major causes of the erosion of trust in institutions by the general public in Nigeria. Corruption appears to be a pervasive problem in Nigeria, almost touching every aspect of governance. Moreover, although there have been attempts at enacting new laws, it is still marred by poor implementation and political influence.

It has been indicated that corruption is inversely related to public trust, thereby reducing citizens' trust in government institutions.