Country Risk Analysis of Nigeria

The biggest problem with the government of Nigeria in regard to its malpractice towards the people is the unchecked corruption. “A

First, it is important to define what corruption is. The term, “corruption” covers a broad range of human actions,

Corruption can take many forms and can be found in many countries, but mainly in the emerging ones. The main form of corruption is the bribery in the form of payments demanded by the government or ministry officials in exchange for a favor (granting a service, awarding a business).Corruption affects all the businesses that interfere with the government, but studies have shown that certain industries are more exposed to it. These industries are construction, airline manufacturing, power plants, and oil and gas production.

Neither country has strong state institutions so political progress and economic development become difficult. A lack of state institutions lowers the standard of living and impedes civil rights. Corruption is also a “symptom of missing institutions” (McMillan 156). Corruption is a major obstacle in Nigeria and Angola which is influenced by oil money. In both cases there is a “bloc of corrupt powerful elites … while a large percentage of the population [continues] to live below poverty lines” (Ajayi 1). The money that is generated from oil falls into the hands of elites which directly impacts the country 's ability to democratize. In Nigeria, “oil revenues have been the primary lubricant in making democracy ‘work’” (O’Neil, Fields, and Share 760). Politicians have rigged elections by promising money and positions of power to citizens to guarantee votes. This is problematic because Nigerians are not having their voices heard. They are being bribed with money and power to vote for a politician, which is enticing in a country where the citizens live below the poverty line. This not only hinders democracy, but is a breeding ground for violence (O’Neil, Fields, and Share). In Angola, the government aims to keep corruption and other abuses of power a secret from Angolans. The state owns most newspapers and the only television station, so they tend to show government propaganda in favor of the state only. Any journalists

Nigeria has a population of around 180 million, making it the most populous country in Africa. Nigeria is located in a region with tropical climate and that can grow variety of crops. With their numerous resources and growing technology they have been able to have positive economic advancement. Nigeria has had improvements in five of the ten economic freedoms. This includes Freedom of corruption, labor freedom, and management of government spending ("Nigeria." Economy: Population, GDP, Inflation, Business, Trade, FDI, Corruption.). Nevertheless these large improvements in their economy has not brought human development, where most Nigerians live under the poverty line. This paper will focus on why Nigeria has not been able to use their economic prosperity in the sector of human development, this includes standard of living, health, safety, and basic necessity one needs to live a stable life. We will compare it to the state of Ghana whose economy has also flourished but has been success in human development.

Nigeria is an Agricultural and oil rich nation but characterised by Political instability, corruption, poor

clutches all over the country; each and every government sector of the country is affected by corruption. Government officials, clerks, secretaries and even ordinary peons, security officers and others are engaged in corruption. They take bribe from common people for giving any service. Our country, Bangladesh, has topped the list of corrupt countries five times. Nature of corruption: Corruption is like a contagious disease. Man adopts different ways and policies to get established in life. Everyone tries to dominate in his own field — social or political sector. If there is no definite policy

Corruption can be defined as the use of entrusted power to accumulate public wealthy for personal benefit. Corruption is not peculiar to any country, continent or state; it is sure a global issue which is an endemic to all government all over the world. However, corruption is prevalent in the Niger delta region of Nigeria; public officers in this oil producing state of Nigeria are corrupt. Consequently, it has defied the Niger delta from developing politically and economically which has left the states reputation in a mess. Radicalization of youths, abject poverty and -political instability are the three leading effects of corruption in the Niger delta region of Nigeria.

Finally, we think that corruption in Nigeria is presented on a large scale because the government allows it, so this case involves a very important and outrageous government and its leaders. And the company in question, we think that this had to have chosen a better his legal representative in Nigeria for the construction of the plants (they were a part of the blame)

Nigeria has been a democracy since 1999 when the military handed over government power to elected officials. Since then, the countries electoral system has experienced many upsets and downfalls. This transition has been anything but smooth with large amounts of corruption within the country 's political and socio-economic system. Due to the ineffectiveness of governance, it has been extremely difficult for Nigeria to effectively democratize. In order to improve Nigeria’s corrupt electoral system, the Nigerian government has established many agencies to enact numerous reforms, including: Establishing an agency to oversee political elections, combat election rigging, and encourage voter participation, as well as constructing an organization that oversees government spending and cracks down on money laundering. These reforms had only mild success before 2012. The reasons for gradual improvement after 2012 had to do with, although not limited to, leadership. These changes were the result of different political and economic events the country experienced.

Political/legal factors: there are no restrictions on the level of foreign investment (shareholding/domiciled enterprise) as repealed by Decree No. 7 of 1995 Nigeria Enterprise promotion Decree in Nigeria except in production of Ammunition and production of and dealing with narcotic drugs and psychotropic substances. Companies can move money in and out of the country for Business purpose but must be through an authorised agent i.e. solicitor (HB Bill 117 (n. d.).

Research indicates that the military played very prominent roles in sustaining grand corruption in Nigeria as ‘corruption, already bourgeoning under the early politicians, became entrenched under the military rule’. Military coups forcefully circumvent democratic institutions and because of their illegitimacy, it can be argued that the track records of the military portend that they had little regard over the well-being and welfare of the populace and as such pursued no mandate of accountability and transparency towards the people. The military rulers were able to perpetrate their

Corruption can be distinguished regarding to where it happens: at the political or management levels of the public sector, or in the private sector between customer and supplier. It can be identified regarding

Currency devaluation and fuel subsidy removal are policies that are phenomena to the Nigerian economic environment. This research study identifies that the implementation of the policies has further caused more challenges in the pursuit for economic development than remedy to alleviate the crisis.

The Nigerian economy has several activities sectors which include agriculture (crops), livestock, forestry, fishing, manufacturing, crude petroleum mining and quarrying, utilities, building and construction, transport, communication, wholesale and retail trades, hotels and restaurants, finance and insurance, real estate and business services, housing, producers of government services and community, social and personal services. However, with the advent of the crude petroleum sector and its attendant boom in the international market, all other sectors of the Nigerian economy have experienced serious neglect by the government, thus resulting to an unbalanced economy.