Pervasive corruption drains Nigeria resources and discourages private investment in Nigeria.
Investors in Nigeria cite foreign exchange risk and policy uncertainty as key concerns. Import restrictions and local content requirements intended to foster domestic industry may deter United State investment, though the US State Department reports that “corruption and lack of transparency in tender processes has been a far greater concern to US companies than discriminatory policies based on foreign status.”
In 2012, Nigeria was estimated to have lost over $400 billion to corruption since independence. In 2019, the country ranked 146th in the 180 countries listed in Transparency International’s Corruption Index (with Somalia, at 180th, being the most corrupt, and Denmark the least).
United States senators make an approximate annual income of $174,000, while that of Nigerian senators is $2,183,685.
Corruption in Nigeria could cost up to 37% of Gross Domestic Products (GDP) by 2030 if it’s not dealt with immediately. This cost is equated to around $1,000 per person in 2014 and nearly $2,000 per person by 2030.