WHY NIGERIA MUST FIGHT CORRUPTION

The purpose of this article is to answer why Nigeria must fight corruption. Yes, Nigeria must fight corruption because corruption is like a cancer in a capitalist system and economy. The effect and impact of corruption results in an imbalance in the economic system, and can be directly traced to the double digit INFLATION that has plagued Nigeria for a long time. If everybody starts collecting bribes, i.e.,10% graft from contract, police and custom collecting money from importers and exporters, messengers collecting a bribe before they locate files etc, this is money that is not supported by productivity or production of goods and services. In essence, you will have more money in circulation than goods and services produced from hard work and industry, thereby creating artificial demand that outstrips supply. In effect, you have lots of money chasing few goods which translates to inflation.

It is my submission that the in-balance in Nigeria is largely from excess money in circulation. I mean the excess money that cannot be supported by productivity or genuine economic activity, and must be checked by the government to bring sanity to the system. If you disagree with my model, then think about this scenario. You are a hard working young man. In the course of looking forward, you plan to own a house in the nearest future. Currently, a house goes for about $80,000 in your area. Suddenly, house prices start climbing and there are no economic indicator(s), i.e., a sharp drop in interest rate or influx of new comers, to support the rise in house market. And before you know it, the same house has gone up to $250,000. You wonder why, and found out that drug dealers are the ones buying the houses and pushing up the price.

In essence, money that cannot be supported by hard work has invaded your community and your dream of buying a house has been shattered because your salary has not changed significantly. There is no difference between drug money and bribe money; they are both unsupported by genuine economic activity. They both create artificial demand, and consequently, inflation. Why did governments in the Western world fight illegal drug trafficking? They are not doing it because it is a moral thing to do, they are protecting their economy from bad money.   A good example of this scenario in Nigeria is what it cost to buy a plot of land in Victoria Island and other decent places.  I was told that an average plot of land in Ikoyi goes for about N100 million which translate to a whopping US$833,333 or Cdn$1 million..  How do you explain that the cost of a plot of land in Nigeria will buy a huge 20 units apartment complex in Kaduna State?  It is outrageous.  What is pushing the cost of land in Lagos or Abuja?  Your guess is as good as mine.

In Nigeria today, money is being worshipped like God. You could be poor today and become a "big man" tomorrow. Nobody will ask questions. There is a serious rat race. It explains why we have rogues as lawmakers. People go into government poor and come out rich, and nobody ask question. Instead, they become heroes and heroines.  The motive for going into politics is not to serve the people, but to serve self by embezzling funds.  We now hear of governors coming out of office with billions of Naira in their private account and also hear of elected local government officials coming in once a month to share allocation to their council.  No nation can survive such depraved moral value for a long time.