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._ International Science Index International Journal of . . Social, Education, Economics and Management Engineering., London Vol. 9, No.1, 2015 pp. 245-252 A Publication of World Academy of Science, Engineering and Technology bttp://www.waset.org/Publieations/?patb=Publieations&q=lyoba&s ea reb =Sea reb /

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Page 1: Social, Education, Economics and Management . Engineering ...eprints.covenantuniversity.edu.ng/3661/1/Dr. Egharevba E. M. 2.pdf · Iyoha, Daniel E. Gberevbie, Charles T. I ruonagbe,

._

International Science Index

International Journal of . . .·

Social, Education, Economics and Management

Engineering., London

Vol. 9, No.1, 2015 pp. 245-252

A Publication of World Academy of Science, Engineering and Technology

bttp://www.waset.org/Publieations/?patb=Publieations&q=lyoba&s ea reb =Sea reb

/

Page 2: Social, Education, Economics and Management . Engineering ...eprints.covenantuniversity.edu.ng/3661/1/Dr. Egharevba E. M. 2.pdf · Iyoha, Daniel E. Gberevbie, Charles T. I ruonagbe,

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International Journal of Social, Education, Economics and Management Engineering

Editorial Board

International Scientific Committee and Edito r ial Review Board

Dr. Saikat Gochhait Department of Business Administration Sambalpur University, IN Assoc. Prof. Dr. Ben Kwame Agyei-Mcnsah Department of Finance and Accounting Sol bridge International School of Business, KR Dr. Ganthan Narayana Samv Advanced Informatics School Universiti Teknologi Malaysia, MY Dr. Jan Mohammad Institute of Management Sciences University of Balochistan, PK Assoc. Prof. Dr. Zulkifli Mohamed Udin School of Technology Management and Logistics Universiti Utara Malaysia, MY Assist. Prof. Dr. Dragana Macura Faculty of Transport and Traffic Engineering University of Belgrade, RS PhD Candidate Tr·ias Setiawati Department of Management Islamic University of Indonesia, ID Prof. Dr. Luis Pereira School of Management, Hospitality and Tourism University of Algarve, PT Assoc. Prof. Dr. Elena Fleaca Department of Management University POLITEHNICA of Bucharest, RO Dr. Samuel Anantadjava Department of Business Administration Swiss German University, ID Dr. Abubakar Salisu Garba Department of Business Administration Northwest University Kano, NG Dr. Karen Fernandez Hotel and Restaurant Management and Tourism Management Imus Institute, PH

Page 3: Social, Education, Economics and Management . Engineering ...eprints.covenantuniversity.edu.ng/3661/1/Dr. Egharevba E. M. 2.pdf · Iyoha, Daniel E. Gberevbie, Charles T. I ruonagbe,

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Dr. Tanushri Purohit Amity Business School Amity University Gurgaon, IN Assoc. Prof. Dr. Maria Tsirintani Department of Business and Administration/Health care management sector Technological Educational Institute of Athens (TEl of Athens), GR Assist. Prof. Dr. Iwona Gorzeil-Mitka Faculty of Management Czestochowa University of Technology, PL Dr. Vani Ramesh Department of Commerce and Management Reva University, IN Prof. Dr. Raghava Devulapalli Department of Business Administration Swarna Bharathi Institute of Science and Technology, IN Dr. Priti Mishra Department of Management Maulana Azad National Institute of Technology, IN Prof. Dr. D jamel Eddine Laouisset Business Administration Department Alhosn University, AE PhD Candidate Tatevik Sahakvan Department of Economics Science Russian-Armenian University, AM Assoc. Pt·of. Dr. Azhar Abdul Rahman School of Accountancy Universiti Utara Malaysia, MY Assist. Prof. Dr. Hala Aly Department of Nursing Management College of Nursing, SA Dr. Tanushri Purohit Amity Business School Amity University, IN Prof. Dr. Samson Davovan Department of Economics Armenian State University of Economics Gyumri Branch, AM Assist. Prof. Dr. Walid Elgammal Department of Accounting and Finance Lebanese American University, LB Dr. Kapil Arora Institute of Management JK Lakshmipat University, IN

Page 4: Social, Education, Economics and Management . Engineering ...eprints.covenantuniversity.edu.ng/3661/1/Dr. Egharevba E. M. 2.pdf · Iyoha, Daniel E. Gberevbie, Charles T. I ruonagbe,

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International Science Index

International Journal of Social, Education, Economics and ·Management Engineering Vol. 9, No.1, 2015

Table of Contents

Cost of Governance in Nigeria: In Whose Intet·est'? Francis 0. Iyoha, Daniel E. Gberevbie, Charles T. I ruonagbe, Matthew E. Egharevba

IT Systems of the US Federal Courts, Justice, and Governance Joseph Zernik

Holomorphic Prioritization of Sets within Decagram of Strategic Decision Making of POSM Using Operational Research (OR): Analytic Hierarchy Process (AHP) Analysis Elias 0. Tembe, Hussain A. Al-Salamin

Conversion of Mechanical Water Pump to Electric Water Pump for a Cl Engine K. Arunachalam, P. Mannar Jawahar

Mixed Convective Heat Transfer in Water-Based Al203 Nanofluid in Horizontal Rectangular Duct Nur Irmawati, H.A. Mohammed

Measurement of Operational and Environmental Performance of the Coal­Fired Power Plants in India by Using Data Envelopment Analysis Vijay Kumar Bajpai, Sudhir Kumar Singh

Designing Back-stepping Sliding Mode Controller for a Class of 4Y Octorotor I. Khabbazi, R. Ghasemi

Design and Testing of Nanotechnology Based Sequential Circuits Using MX­CQCA Logic in VHD L K. Maria Agnes, J. Joshua Bapu

Page 5: Social, Education, Economics and Management . Engineering ...eprints.covenantuniversity.edu.ng/3661/1/Dr. Egharevba E. M. 2.pdf · Iyoha, Daniel E. Gberevbie, Charles T. I ruonagbe,

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World Academy of Sc1ence, Engu1cenng and Techno log) International Journal of Social, Education, Econom1cs and Management Engmcenng Vol 9 No I, 2015

Cost ~f Governance in Nigeria: In Whose Interest? Francis 0. l yoha, Dan iel E. Gberevb ie, C har les T. l ruonagbe, Matthew E. Egharevba

Abstract- Cost of governance in Nigeria has become a challenge to development and concern to practitioners and scholars alike in the lield or business and social science research. In the 2010 national budget or NGN4.6 trillion or LJSD28.75billion for 1nstance. onh a pantry sum of NGN l.8trill1on or LJSD 11.15blilion \laS earmarked Jt)r capital expenditure. Simi lar! ). in 2013. out of a total national budget of NGN4.92trillion or LJSD30 75billion, onl) the stun ol NGN 1.50trllion or USD9.38billion was voted lor capital expenditure. There lore, based on the data sourced !rom the N igerian Oflice or Statistics, Central bank of Nigeria Statistical Bulletin as well as !rom the United Nations Development Programme, this study examined the causes of high cost of governance in Nigeria. It lound 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 or public resources. As a result. the study recommends the need to intensil)' the war against corruption and mismanagement or pub! ic resources b) government oi'lic ials as possible sol ution to overcome the high cost or governance in Nigeria. This could be achieved by strengthening the constitutional powers or the' arious anti-corruption agencies in the area of arrest. i111·estigation and prosecution of o!Tendcrs without the intcrl'crcncc of the executive ann of government either at the local, state or li;deral Je, el.

Keywords--Capital expenditure, Cost or governance. recurrent expenditure, unethical behaviour.

I. IN I RODLJC I ION

N IGERIA is a nation in dire need of dc:,elopment JiJ,~

most other nations of th~ world. The dream ol·

development for the improvement in the living standard of the:

people seems to be fading away. This could be ascribed to the

inability of the various governments in the past to effective!)

utilize the available scarce resources to accomp l ish the desired

goals of developm~nt in the soc iety. On~ of the major reasons

lor this stat~ of alTair is the high cost of governance in the

counl!') [ lj. fhc high cost of governance in Nigeria is

particular!) \Vorrisomc considering the fact that government

expenditure in the past has not translated into an) · meaningful

de\elopment in terms of the improvement in the livGs of the

people, as Nigeria still ranks among the poorest nations of the

F 0 lyoha, (Ph 0), IS of the Department of Accounung, Covenant U1m ersuy, Ota, Ogun State, N1gcna (phone •234-8033515869. e-mail 1yoha fi·ancis(ii covenantun1versll) cclu.ng)

D F Gberc\ ble, (Ph D), IS \\lth tile Dcpanmcnt or PolltJCal Science and International Relations. Covenant lJn1' crsll), Ota, N1~cna (phone ~J-1-

80:13628562, e-mail damd gbcrc' bJt.: o CO\ cnantullJ\-CI"Sll~ edu 11~) C ., I ruonagbe, (Ph D), 1s of the Dcpartmcnt of Soc10lng~. l O\ L'tl<lnt

UnJ,erslt), Ota, Ogun State. N1gcna (phone 1234-8033011~00~ c-mall tunde.lnlonagber(lco,·c nantunJversJt) edu ng)

M. E. Egharevba, (PhD), IS \\ llh the Depanmcnl or SocJOIOg)' co, en ant Umversity, Ota, Ogun State, Nigena (phone· •234-8035730381, e-mail matthc\[email protected]).

The authors arc grateful to Covenant University Centre for Research, lnno,at1on and Discovery (CUCR\0), Ota N1gena for the funds released for this research work.

International Scholarly and Sc1ent dic Research & Innovation 9( I) 2015

world \2\. The implication of the above is that despite the

existence of abundant human and material resources, majority

of Nigerians st ill groan under the yoke of poverty. It has been

observed that the prosperity of any nation hinges on efficient

go' ernment. I his is because it is the go' ernmcnt that helps to

susta in the social contract thai binds even one member of the

state or countr) togc:thet·j3J

In a bid to overcome the challenges of high cost of

governance. successi1e go' ernments in Nigeria. since the

return to democratic rule in 1999, have ta lked about the need

to reduce the countr) ·s high cost of governance as a strateg)

to make more funds available for development. The irony,

however, is that rather than reduce it. every new government

seems to increase it li.trther than it inherited ii·om its

predecesso r to the detriment of development and the people

j.fj . Research has sho,, n Jhat it Jakes 70 percent of the nation· s

revenue to maintain less than 20 percent of the Nigerian

population that are public sen ants \5\. At·ising from the above: the questions that come to mind

arc: has the high cost of go,ernance in Nigeria translated into

development and improved standard of living lor the people'l

In whose interest is the high cost of governance in Nigeria?

I IO\\ can the cost of governance be reduced to encourage

clc\clopment in Nigcria'l

II.Oil.illll\l IJI 1111 Sit I>Y

Pre\ ious studies on cost of go1crnanee in Nigeria J()cuscd

primaril) on supplcmentar) appropt·imion or extra-budgetar)

e:-;penditurc as a ''a: of understanding the stra tegies used b)

governments both at the federal, state and local levels to

increase high cost of governance in their favour [2]. \6 J. llowever. the objective of thi s st udy, therclore, is to examine

how high cost of governance has created di scomfort on the

populace using such variables as the lluman Development

lnde:-; (IIDI) Report. rate of unemployment. level of

cotTuplion and the persistent problem of violence and crime in

the countr). including hm1 these hm e affected the

development and qualit) ofli!C of the people.

Ill. METIIODS i\ND SrRUCTURE

The paper adopted the hi storical and descriptive research

methods to analyse the data. Studies have shown that the

historical rcscan:h method in,olvcs imestigating. recording.

anal: si ng and interpreting C\ en is'' ith a 1 ic11 to arriving at an

accepiablc research outcotnc j 7j. In addition. the paper is

structu red into eight sections. Section one senes as the

introduction: section t\\O states the objective of the stud):

section three identilied the methods used and the structure of

the paper: section lour looks at the literature on governance

and development: section live e:o;amines the theoretical

::>45

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World Academy ofSc1ence. Eng1necnng and Technology

International Journal of Soc mi . Education, Econom 1cs and Managemen1 Engmeenng Vo l 9 No I , 2015

framework of' the study; section six discusses the cost of' governance on development in Nigeria; section seven analyses the otitcome of the study and conclusion: while section eight gave recommcndatton s on the way forward.

IV . LITERATURE R EVIEW

Throughout the world. the unevenness in economic development and soc ial change presents us with the stark contrast with respect to comparing the di rrcrenccs bct11 ccn the developed and developing countries 18J. !'his di1 ision becomes even more disturbing 11 ilhin each nation 11 hc:n one considers the character or most Afi·ican states and their capacity to deliver qualitative improvement in the lilc or their citizenry. Thus, a critical examination or issues that centre on development challenges in Nigeria reveal varied incidences of increasing absolute poverty, unemployment. poor sanitation, infi·astructural decay. gross inequality and massive uneven income distribution 19'1. For instance. since the return to civilian rule in 1999. the country has not fared better in the UNDP lluman Development Index (HOI) ranking. such that today. over 70 percent of N igerians live below the povcrt) line. infimtlchild and maternal mortalit) is still one of the highest in the world. more than I 0.5 million children are out of' school. unemp!O) ment is 01 er 20 percent and li fC expectancy is less than 52 years II 0]-1121. It is 11 ithin thi s context that thi s paper seeks to examine the concept of' governance and development and how it plays out within the Nigerian state in delivering the "dividends of democrac) .. l()r the populace. rhi s is critical. given the currc:nt shilt in dc:velopment discourse: li·om the locus on economic gro11 th to that of promoting human dc1 elopmcnt anchort:d on democratic governance. which cmphasi;.cs inclusi1<.: participation. the consent or the governed. non-di scrimination. transparency. accountability and adherence to the rule of la11

1131-1 1s1.

A. The Concept ofGovernance and Development

There is the consensus among development scholars. institutions and policy makers that the prosperit; of a nation has strong correlations to its kind of leadership. soc ial policy fi·amework and governance 1161. 1171. Leadership is critical to providing better governance. which advances. soc ietal development. because it is a process or influencing the activities of' an organized group towards goa l se tting and goal attainment. Thus. underlining the issue of effective leadership in modern societies is the nature in which politics is played and what the people who seek state power/authority use it lor that ultimate!; shapes governance and devcl0pment outcomes

ll8J. ll91 Toda;. the issue or gmcrnancc is attracting more and more

attention within and among countries. As the numbc:r ol· democratic regimes continues to ri se. good go1 ernancc has become an important criterion to judge a counu-; 's credibility and respect on the international scale. Good governance has been seen as the single most important !actor in eradicating poverty. inequity and promoting development 120]. Since the word ·good· is a very subjective term. it is important to be

International Scholar!) and Sc1entlflc Research & Innovation 9( I ) ~015

specific in its usc. Good governance has certain qualities assoc iated with it. wh ich includes ensuring respect for human rights. equity and rule of law: strengthening democracy through publi c participation and pluralism: promoting transparenc;. accountab ility, anti-corruption policies and capacit; in public admi nistration 118]. (19J . When governance is rooted in the above li sted principles, it enables societies to move toward greater human development through poverty reduction. em ironmenta l protection and regeneration. gender equalit) and sustainable Ji,elihoods 1211. l'hus. the greatest tht·cat to good gm ernancc toda: comes from corruption. vio lence and povcrt;. all ol· 11 hich undermine tran sparctlC). sccurit). participation and fundamental freedoms. Since the 1980s. the issue of poor governance has been idcntilied as the major cause of povert) and underdevelopment in majorit; of' countries in Africa. Asia and Latin America 117]. The governance crisis in N igeria and other Af'rican countries is evident in widespread corruption. contlict. inefficient public services. abuse of state power. impunity. lack of' vision and institutional failure. For instance. in assessing the development challenges in N igeria. there is a general consensus among scho lars that the root cause of the nation· s predicament Ia) sq uare!) at the ltJOt or bad kadcr·ship II hich arises from Jack ofcapacit) to rise to their responsib ility in the management or the nation' s rcsoL11·ccs and aiTairs at alllcl cls 1221.

I .ike the concept or dcmocrac), governance and its related concept - good governance arc essentiall; contested concepts [231. Be that as it may. thi s paper sees governance as a political rcalit) that invo lves rules. processes and outcomes 1241-1261 . According to the (),·gani;ation I(J r Lconomic Co­operat ion and Dnclopmcnt (O IL !)). gmcrnancc denotes the usc of political authorit) and c'ncisc ol· control in a socict) 111 relation to the management of its resources I(Jr soc ial and economic den:lopmcnt 1271 . The World Bank Institute (WBI) assumes that governance is 'the exerci se of authority through formal and informal traditions and institutions for the common good, thus encompassing: (I) the process of' se lecting, monitoring. and replacing governments: (2) the capacity to formulate and implement sound policies and deliver public services: and (3) the respect o!' citi/cns and the state for the institution s th at gmcrn economic and socia l intnactions among them l281 . Sim ilar!; . go1·ernance can also be viewed as the exercise of economic. political and admini strati ve authority to manage a countr) ·s aiTairs at all level s. It comprises mechanisms. processes and institution s through which citizens and groups articulate their interests, exercise their lega l rights. meet obligations and mediate their dilkrcnces 1281.

Furthermore. the African Peer Rcvic11 Mechanism (APRM) 1 ic11 s go1 c:rnancc as 1n<.:chanism l(ll· dc1 clopmcrll in line 11 ith Sc:n·s l(mnulation ol dc1clopmcnt as l'rccdom 11hich require> public institutions and processes to promote. guarantee and secure the li ve distinct t) pes of 1i·ecdo1n which include: political freedom. economic lac ilitics. soc ial opponunities. transparency guarantees. and protective securit; 1291.

These live types o f' fi·eedom are not only the primary ends or development. they are also among its principal means.

246

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World Academy or Science, Engineerin g and Technology

International Journal of Social , Educa tion , Economics and M anagement Engineering Vol :9 No· I , 20 15

Consequently, insti tutions and processes must be such that the 'exerci se of f·reedom is mediated by values. which in turn are innueoced by public di scussions and social interactions, which are themsel ves in-fluence;d by participatory freedom ' [30]. In short, what people can positi ve ly achieve is innuenced by economic opportunities, political liberties. social powers and the enabling conditions of good hea lth, basic education and the encouragement and cultivation of initi atives. The institutional arrange ments for these opportuniti es are also innuenced by the exercise of peop le's freedom, through the liberty to participate in social choice and in the making of public deci sions that impe l the progress of opportunities j30]. It is thi s realization and its concomitant application in the di scharge of publi c affairs that emphasize the concept of' democratic governance anchored on accountability, rule of law, participation and inclusion [30).

As for deve lopment, it entail s a condition in which people can meet their basic needs for ex istence and live an improved quality of life. Deve lopment, basically, is a process of institutional change. It is a result of the combined effects of numerous economic. demographi c, political and social factors. It invo lves a far- reaching transformation of human groups' social regulation systems. In defini ng deve lopment. /\ dedeji quoted a simple defini tion used by a Somali elder of Baidoa. who said that deve lopment was de fined as the basic provi sion of water, food, good health, education, peace and order (31). Deve lopment is imposs ible if these basics are not uni versally ava ilable or are absent. Similarly. deve lopment can also be seen as a multidimensional process invo lving major changes in soc ial structures, popular attitudes. and national in stitutions as well as the acce leration of economic growth. r·eduction of inequality and the eradication of abso lute poverty j32]. Thus. identifying development with the gross national product or with the rise in personal incomes, or with industri a lization or with technolog ical advance, or with social mobilization is seen as a narrow view of development. While growth of GN P or of individual incomes can, of course, be very important as a means to expanding the freedoms enj oyed by the members of the soc iety, but freedom depend s on other determin ants such as social and economi c arrangements (for instance. fac i I ities fo r education and healthcare) as we ll as politi cal and civil rights (for exampl e the liberty to participate in publi c di scussion and scrutiny) [ 13 j.

B. Governance and Development Atlainment in Nigeria

The debate about the ti·agile future o f Nigeria is closely related to the failure o f governance. Nigeria's human and infrastructural deve lopment traj ectory is on the downward trend. despite the upswing in oil revenue over the last thr·ee decades. Evidently, the acti vities o f political and eco nomic managers. who depend large ly on o il rent. have subjected the Nigerian State to oil resource curse l33j. Governance. in its widest sense, refers to the various ways through whi ch social life is coordinated. It is a process of social engagement between the rulers and the ruled in the society. In other words, governance system is determined by the relationship between the ruling class and the ruled class (34].

Governance is also the process of exercis ing power and deci sion-making lo r a group of peopl e. and includes the processes by whi ch such deci sions are implemented or not implemented [3 5'j. One recurrent issue on the constitutional framework of N igeria s ince 1922 when the first consti tuti on was made by the co loniali sts, up to 20 I 0 when sections of the extant 1999 co nstituti on were amended, is that, all the constitutions. without any exception. are impositions on the peo ple by the domi nan t force that orga ni1.es or constitutes the Nigeri an state at any po int in time. Th us. a ll the constitutions enacted in Niger ia reflect not the interest of the peo ple but of the dom inant const itut ive elements o l' the Nigeri an State [36j . The eliti st. non-i nclus ive and undemocratic approach to constitution maki ng has largely inl'luenced publi c policy making as it reflects the will of the dominant class in soc iety.

Nigeria has been rated one of the worst governed countries in Afri ca based on the Ibrahim Index of African Governance [37]. In the report. obta ined by Premium Times, Nigeri a is rated 45.8 per cent as aga in st the A li·i can average of 5 1.5 per cent and ranked 37th out of 52 in the overall governance scale. The country sco red lowe r than the regional average lo r West Afri ca whi ch stands at 52.2 percent and ranked 12 'h out of 15 in the region . Wh ile Nigeri a got the dam ning rating by the \l AG . Mauritius is adj udged the best governed co untry in Afri ca. with 81 .7 pe r cent, followccl by Cape Verde, with 76.6 percent.

Other countries that made it to the top of the li st included Botswana whi ch is rated the third best governed country in the co nt inent with 76.2 percent and South Afri ca which comes l(lu rth \\ith 73.3 percent. Chana is rated 7'h : Rv,ancla 1\ 'h : Benin Republic 18'h: Cgy pt 26 'h : Ma li 28th ; Niger 29'h: Liberia 3 1 ": Cameroun 34'h an d logo 36'h: a ll ahead of far more endowed Nigeri a. Wit h a populat ion or 173 .6 milli on and population growth rate pegged at 2.8 percent, Nigeria's Gross Domesti c Product. GOP, is put at US D30 13.3 , while in nation and unemployment rates stand at 8.5 percent and 13.7 percent, respectively. Ni ge ri a also received appalling ratings in such catego ri es as safely and the rule o f law where it is rated 44'h with 38.1 per cent. 32"d in the rul e of law with 4 1.0 percent and 30th in accou ntabi lity with 36.6 percent. The co untry got its lowest rating in personal safety whnc it is ranked 49th with 16. 5 per ce nt and second lowest in na ti onal security where it is ranked 48'h with 58.2 per cent. Under participation and human ri ghts, the country is ra ted 26'h with 46 .9 per cent, 3 I " on sustainable economi c opportunity with 43.3 per cent and 34'h in human deve lopment with 53.0 per cent. Nigeria's 37th pos ition amon g 52 Afri can countries surveyed on public gove mance pract ices show that the go vernment needs to stop li vin g in deni a l. adopt global best prac ti ces an d dmp the co rru ption and ineptitude that have impoveri shed the majorit; o l'the populat ion.

Y.TII J:::ORt2TlCAL FRAMF.WORK

The cost of gove rnance can be examined within the Public or the Group Inte rest Theory. However, considering what government is expected to do (up-holding the we lfare of the

International Scholarly and Scien ti fic Research & I nnova11 on 9( I ) 2015 24 7

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International Journal of Social , Education , Economics and M anagement Enginee ring Vo \: 9 No : I , 20 I 5

society in all ramifications), the Public Interest Theory is relevant fo r the purpose of thi s study.

A. Public Interest, Theo;.y

In the public-interest view, government is seen to be made up of individuals whose des ire it is to serve the public by doing what is "right." In thi s contex t, the government becomes an instrument that will or should improve the we lfcu·e of society. The society does not expect any unintended and unexpected consequences of government ac ti ons to ari se in the course of the discharge of responsibilities. Hence, individuals in government being rational, should be able to prov ide answers to a number of questions such as: what is the right cost of governance, does current output correlate with leve l of spending, could more be achieved with current spending and could the same output be achieved with less spending? It is in thi s connection that, under Section 16 ( I) of the 1999 Nige rian Constitution. the states are required to (a) utilize the resources of the country to advance the prosperity of the country (b) secure the eco nomy such that the welfare, freedom and happiness of every citizen will be max imized while ensuring social justice and equal opportunities lo r all citi ze ns (c) prov ide shelter, food and other amenities fo r all citi zens [38] . From these provisions. it is cl ear that governan ce entail s ensuring just and egalitarian society, whi ch the publi c interest theory should exemplify

VI. COST OF G OV ERN ANCE

By way of theoret ical background to thi s study . we present an overview of the concept of cost of governance and the challenges fac ing the country. Cost of governance is prox ied by publi c expenditure which refers to the expenses government incurs in the di scharge of its legal and imperati ve duties. Publi c expenditure is categorized into recurrent expenditure and capital expenditure. Recurrent expenditure is usually expended on items that recur while Capital expenditure refers to ex penditure on capital projects. In line with thi s, cost of governance is seen as "any expenditure (government budget) tn maintaining government admini strative structures' ' [3 9], [40].

It is established in publi c fin ance literature. that cost o f governance is associated with current expenditure. whi ch is ' 'the expenditure ascribed to the maintenance of' gove t:nment itse lf and not to r the benefit of the society and the eco nomy as a whole" [41]. However, it is argued that ·' increase in government expenditure on soc io-economic and -phys ical infrastructure encourages economic growth' ' [42]. [43 J. It has al so been noted that '·where a ri sing proportion of government budget at whatever leve l, is used to support the admi nistrati ve structure of government. poverty is bound to be pervasive as economi c growth slows clown or eve n stagnates·· f43 j. Under such conditions, citizens would be inclined to regard government as a burden.

Table I shows ev idences that the recurrent expenditure has been ri sing in Nigeria especially since 2008 while capital expenditure has been sacrificed. This could be att ributed to the major reason why the economy. political institu tions.

education, health, securi ty and governance structure have all ' broken down' . Hence the need to interrogate the interplay between gove rnance and deve lopment in N igcri a, using certain indices such as the human development index, rate of unemployment, level of corruption and the ever persistent violence and crime in some parts of the country. These vat·iables co uld be understood in the context of the various lo rms ol· go vern ment l ~1 i lu re. There are two types ol' government fail ure - gove rnment' s in vol ve ment in acti vities in whi ch she is not best suited and fa ilure to r el'io rm its pri mary functi ons or to do so in a sub-optimal way J44]. The fa ilures have adverse consequences on growth and deve lopment. For instance, government intervention in economic act ivities creates monopoly re nts which moti vate government offi cials to take bribes [45] , [46]. This appears to be the case with the privatization of government owned enterprises in Nigeria. The di scourse below provides ev idence that gove rnance in Nigeria has fa iled in both respects.

TA BLE I T tt E EX PENDITU RE PROFILE OF NIGER IAN G OVERNMENT BETWEEN I 999 AND

20 12 [571

Year Total Expend iture Recurrent Expend it ure Capital Expenditure

(N ' m) (Percent ) (Percent)

1999 94 7,690 47.45 52 .55

2000 656,059 63. 50 36.50

200 1 I ,0 I 8,025 56.9 1 43.09

2002 I ,0 18, I 55 68.44 3 1.56

2003 I .22 5.965 80 :!9 19 71

200·1 1,384,001 74 6:! 25.38

2005 I ,743,240 70 20 29.80

2006 2,694 ,880 49 02 50 98

2007 2,8 I 4,492 49 39 50.6 1

2008 3,576,6 11 4443 55.57

2009 3,576,6 11 57 20 42.80

20 t0 3,469,627 63 76 36.24

20t I I ,848,849 7 1.23 28.77

20 12 t ,384,82 1 86.86 13. 14

A. Human Development Index

The human deve lopment index (HOI ) is a composite index meas uring average ach ievemen t in tht·ee basic dimensions or human deve lop ment such as a long and healthy life. access to k nowlcdge and a decent standard of I i ving. The 20 14 Hu man Deve lopment Report - Sustaining I Iuman Progress: Reducing Vulnerabilities and Bui lding Res ili ence put Nigeria as one of the co untri es with low human deve lopment at 152"d position out or 187 countries considered; whi ch is a step better than the previ ous year. The above situation is confirmed by the UN DP

Mu lt id imensional Poverty Index. which indicates that Niget' ia is one of the co untt·ies amon g 9 1 othct·s in whi ch almost 1. 5 bil lion peop le are living in pove rty with overl apping deprivati ons in heal th. edu cation and li ving standards.

For in stance. the 20 13 HDI report ind icates that li fe expectancy in Niger ia is 52 years. while other hea lth indicators revealed that only 1.9 per cent of the nation' s budget was expended on hea lth . Also. 68.0 per cent of N igerians were stated to be living below $1.25 daily while

Interna tional Scholarl y and Sc ient i f ic Research & Innovation 9( I ) 20 15 248

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adult illiteracy rate for adult (both sexes) was 61.3 per cent.

When ~his is considered against the reported growth rate of

GOP of 6.99 per C<';nt in the fourth quarter of 2012, it is a poor

result.

_,..,.,.,. ~ ,.,..,.

,,,., ------ -----· ___ ,.,.. -w·•· ••••-

-·-·- _ ......... -·-----J:5

J 20.0 zoo: Year ._')·:s

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rig. I Trends in Nigeria's IIDI component indices 2005-20131 581

TABU II

WESTAFRIC·" COU,.IRilS Hl , ~IAN Dl· \ '11 OI'MlNI hDI \I RENDS 1980-2011 159

SfN

6

9

10

Counlly

*Cape Verde *G hana

Cameroon Senegal Nigeria

Mauritan1an

Togo Benin

Gambia Coted'Jvorc

II Mali 12 Gumca l3issau 13 Gumca 14 Sierra Leone

Average Annua\1101 grO\\th percent

HDI Rank 1980-2011 1990-2011 2000-2011

133 0. 75 135 !50 155 156 !59 162

167 168 170 175 176 178 180

I 10 0.85 I 20

101 0 73 I 71 141

0.45 2 37

0 99

I 23

0.58 I 10

I 20

() 80

I 44

I 35 0 50 2 74

I 61

I 66 I II I 28

() 92

()58

I 10 141

0.61 cA7

2.65

15 13url-ina Faso 181 16 Ltbena 182 006 0.6·1 17 Chad 183 1 c6 18 Niger 186 167 c.05 "23J

*Only Cape Verde and Ghana arc 111 the Medium liD! while olhc rs incluclmg N1gcna arc countries 111 the Low HOI group

The position depicted in Tables II & Ill indicates that

Nigeria has not improved in its human development Index.

Furthermore. the HOI position of Nigeria as compared \vith

both the Economic Community of West African States

(ECOWAS) and the Organization of Petroleum Exporting

Countries (OPEC) cohorts indicate that Nigeria is not faring

well. For instance. among ECOWAS members: out of the 15

member countries, Nigeria ranks 5' 11 position despite her vast

lnlernational Scholarly and Scicnlllic Research & lnnova11on 9( I) 2015

human and natural resources. Furthermore. among J::COWAS

members: only Cape Verde and Ghana are in the medium

!Iuman Development. while others including Nigeria arc

among countries in the low HOI group. Also, among OPEC

members. Nigeria ranks 12'11 out of the 12 countries

considered.

SN

·I 5 6

7 s '-)

10 II

I A Ill. I· Ill Jll)l I 'I OR\ lA 110' 0' ()I((,."IL.\ 110' 01 l'l·l ROI H \I l :X POR II"'(,

Cou' rRilS (OPEC) l2.2..l !\ vcragc Annual II Dl growth p<.~rcent

liD! Rank 1980-20 II 1990-20 I I 2000-2011

Unt ied Arab Enmalc 30 0 96 0.97 106 Qatar 37 0.54 0.54 0.53

Saudt Arabia 56 0 55 0.50 0 55 Kuwall 63 0 32 0 31 0 74 Ltb)a 64

Venezuela !.) () 'i4 0 74 I 04 Ecuador 83 0 64 0.59 0 69

Iran XX I )7 I 35 0 97 AI gena 96 I 40 I 13 I 03

Iraq 13~

Angola 14X I c Nigcna 156

*Gabon and Indonesia lcrmmatcd ihctr mcmbcrshtp or OPEC in 1995 and 2009 respec\1\ cl,

13 ( ne111plot'llli'lll in \ igeriu

Unemplo: ment is one of the major chalknges facing

N igeria today n en though sC\ era\ ci'l(>rts han; hecn made b)

governments at various levels to prol'lcr solutions. II is a

paradox that a country which reports strong economic indices

such as strong real GDP gro\\ th of aver·age 6.5 percent in the

last decade still has unemployment rate that continues to rise

annually from 11 .9 percent in 2005 to 19.7 percent in 2009.

and over 3 7 percent in 20 I3 [4 71-[49]. The intriguing issue

about increase in unemployment rates as stated above is the

controvers) over the authenticit) these values. As at 2013. the

Nigeria Bureau of Statistics gave the unemployment rate in

Nigeria as 23.9 percent. \lhile at the sa me time. the Minister

of Finance and the Chairman of' the Economic Team indicated

that the rate is 37pereent. It is howe\·er belie\cd that the

curTent level of' uncmplo) ment in N igeria is above 40 percent

1481. Non-the-less. this situation is pathetic. South Africa has

unemployment rate of 25.2 percent. \I hile on the average. (jhana has 22perccnt. N igeria is hlessed \\ ith a lot of human

and natural resources capahlc of' pro\ iding cmplo: mcnt lor the

teeming ) ouths in the countr) 1491. I he f'undamcntal question

is: \\h) is there so much uncmplo) ment in the midst of a

11ercei\ed strong CJDI' t!I'0\1 th' 1 l'hc UllS\\ers arc legion and ~ ~ ~

include the lollo\1 ing: corruption. negket of the agricultural

sector. infrastructural deca:. unlavourablc government

reforms. and S) stemic problems in education among others

1491.

C. Corruption in Xigeria

The Corruption Perception Index 2013. published b)

Transparene) International indicates that Nigeria occupies the

249

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!44th position in the world. Thi s plunged downward further from the !37th out of 177 countries surveyed in 2012. Public poliC) In Nigeria is oriemcd towards the ·affluent fe11 ' and only pays lip service to ·· the ·amicted majorit).· The rapid transfer or public wealth to the ruling elite and their cmnics under the cloak ofprivati;.ation, the allocation of25 percent or the recurrent expenditure or the Federal Government to just 469 members of the National A ssembly attest to thi s fact 1501.

Governance, in Nigeria, as rightly observed. is about 'creating affluence for a few. not about eliminating arniction for the many .' Rather than governance being anchored on common good. it has turned the common wealth of all into an arena of personal accumulation [50]. That is why it has been argued that the bane of Nigeria's development is that critical institutions of government are superintended by a ruling class that lacks governance fitness and contract management culture [341. One of the areas where corruption has become endemic is the privatization programme of the government. It is one area where the N igerian State ·cannibalized public corporations and parceled them to or among leading members of the ruling class· 1361.

D. I 'iolence and Crime Rate in Nigeria

Violent crimes such as murder. armed robber:. kidnapping and terrori sm arc the most inhumane crimes that continue to plague N igeria. Late!). kidnappings lor ransom and terrori sm have taken the centre stage leading to bloodshed and economic set-backs [51]. The UN-IIabitat study on crimes and violence stressed that socio-economic inequality and the lack or opportunities for social advancement and employment arc some of the root causes of crime and violence [521. Indeed. the Boko llaram insurgency poses a great threat to human development in Nigeria. Boko l-laram insurgenc) is not onl) leading to heavy loss of human lives and propcrt) . In the Catholic dioceses of' Maidiguri. the Boko llaram sect killed 146 persons and displaced 33.169 between 2013 and 2014 alone [53].

There is also the problem of millions of persons who have been rendered homeless and are now refugees in their homeland 133]. Live lihoods or over six million persons have been affected and economic life in North Eastern Nigeria has been crippled. Investments in the N igeria are alrcad:;. threatened even though government promi ses that it has 11 hat it takes to curtai I the threat.

VII. DI SCUSSION AND CONC I.USION

Thi s study has provided evidence that N igerians arc at the mercy of the individuals in government. Thi s is explained by the failure of the public interest theor) to explain the legitimacy of governance. Rather. it would appear that the Special Interest Theory. which says that government purposefully bestows wealth on those in government at the expense of the average citizen. is relevant in Nigeria. Thi s is poss ible because the individuals in government have the power to use coercion to achieve whatever they desire. From the analysis of the issues contained in thi s study. those who arc involved in government have the same motivations that

those in the private sector have. That is, the) are motivated b) a narrow concept of sell~interest: wealth, fame, and power, which represent the act of balancing one's budget at the expense of the generality of the populace. If there is a confli ct bct11cen the public's intcn:st and the private interest ol' go1crnmcntal dec ision-makers. the public's interest "ill lose. This has been amp!) displayed in the conduct of those in government as presented in the variou s sections of thi s paper.

All these presuppose that Nigeria is graduall y becoming a failing state. which denotes a state in transition to a fa iled state status. !Jere while the state remains nominally a sovereign entity and fulfills a measure of the functions of a soverei gn government, the central government has become so weak and ineffective that it has little practical control over much of ib territor). leading to an upsurge in pervasi1 e insecurit ) such as kidnapping. organi;:ed assassinations and robberies. A failing state is also charactcri1.cd b:;. a 11eak abilit) to pro1 ide basic public services and 11 idcsprcad corruption as people think of themse lves first. follolving the failure or the state to perform its traditional functions 1541. It is therefore imperative to state that. while Nigeria is not yet a failed state, it could arguably qualify as a fa iling state where the government seems to have lost control over Boko llaram and its activities with the inab ilit: to n:scue the ?.76 Chibok gi rl s abducted since April 1-1. 2014. including the spate or bombing and \\anton loss of li1 cs and properties. In all. 11 hat thi, implies i-, that go1 crnancc shaped and sustained b:;. eliti st preferences cannot engender sustai nable development in the soc iet).

Taking a cr itical look at vio lent crimes in Nigeria and the !'actors responsib le lor them. we can place the blame for most or these atrocities on the 1\ hole range of economic conditions associated with povctiy. soc ial injustice and inequality. Though not e:-.cusable. the problem o f v iolent crimes in Nigeria has been exacerbated b) the high rate of unemplo:;. mcnt and economic hardship. 11 hich has pushed many jobless) ouths some of whom are graduates into various dead!:;. uimes. It is ob1 ious thai no nation can achie1·e meaningful economic development in an atmosphere of violent nimes. such as armed robber). terrorism. arson. militanc) and kidnapping. J'hc increase in crime and violent behaviour could be attributed to the disillusionment of the "have nots ... across the length and breadth of the country [55].

A fundamental outcome or national insecurity is an unstable polit1 11 here societal nmms and q!i ucs an: put under severe st ress. l·ail ure to restme mder to socie t:;. 11i ll culminate in anomie. 11 hi ch in1 ariabl: 11 ill be inimical to the peace and progress of the socici:. At present. the abilit) ol'thc N igerian Police Force (NPF) to cllectively play its constitutional roles or maintaining i<lll. order. sa l'c t). securit) or Jives and properties have become a subject of intense debate in view of the prevailing insecuri t) in the country 155]. [56]. Based on the preceding discussion, it is evident that the high cost of governance in Nigeria is in the interest of the individuals - the elites in government and not in the interest of the people - the masses.

lmcrnallonal Scholar! ) and SCJCilllfic Research & Innovation 9( I) 20I 5 250

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VI fl. RECOMMENDATIONS

The. current situation cannot be allowed to remain for too long. The goverm:nent and the governed have their respective ro les to play in thi s' regard. The following so lutions are offered as having the potential to reduce cost of governance in N igcria for development: (i) The formulat ion of policies and laws that cou ld help

improve the economic and social wellbeing of citizens should be a joint responsibility of both government and the governed.

(ii) The citizens should take active part right from the local level in the issues that affect them

(ii i) The corrupt individuals amongst the populace shou ld be regarded as common enemies and not voted into power in subsequent elections.

(iv) Assets of corrupt government off'icia ls should be confiscated and converted to publ ic use .

[I]

[2]

(3]

[4]

[51

[6]

[7]

(8]

[9]

[10]

(II]

[12]

[1 3] [14]

[15]

[16]

[17]

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[46] lmernat10nal Monewty Fund (2005). IMF- N1gena consulwuon Art1cle IV concludmg statement \MF E\lernal Relations Department, AbuJa Ma_rch 8-25

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