DOES POLITICAL CORRUPTION IN THE FOURTH REPUBLIC SHIFT NIGERIA TO THE WORLD`S POVERTY HEADQUARTERS? AN ERROR CORRECTION MODEL APPROACH
DOES POLITICAL CORRUPTION IN THE FOURTH REPUBLIC SHIFT NIGERIA TO THE WORLD`S POVERTY HEADQUARTERS? AN ERROR CORRECTION MODEL APPROACH

Summary/Abstract: The aim of this study is to provide an empirical answer to the question whether political corruption in the fourth republic has shifted Nigeria to the World`s Poverty headquarters. The answer to this question has been controversial among the scholars and policymakers. In view of this, the study utilized secondary data from 2000 to 2019 with the application of an error correction model. The findings that originated from the study are summarized as follows; 59.9% of the error due to shocks in the previous period was corrected in the current year. Political corruption has an insignificant positive relationship with income inequality in the short run, but this relationship becomes significant in the long run. However, political corruption and poverty level in Nigeria have a significant positive relationship in the short run. In the long run, the relationship becomes negative, though insignificant. This implies that political corruption brings about a rise in poverty level in Nigeria. In other words, political corruption during the fourth republic has led Nigeria to the world`s poverty headquarters. Due to this important finding, recommendations were made for the policy makers in Nigeria as follows; tackling poverty in Nigeria requires policies that will address political corruption holistically. Therefore, the Nigerian government should strengthen anti graft institutions like ICPC and EFCC to curb corruption so that poverty menace could be addressed in the country.

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