Corruption and Poverty Level in Nigeria: Does Accountability Mediate the Effect?

Abstract

Nigeria has been a subject of extensive scholarly inquiry and international attention concerning the adverse effects of corruption on its socio-economic fabric. This study delves into the complex relationship between corruption, accountability and poverty reduction in Nigeria by investigating whether accountability serves as a mediator in the effect of corruption on poverty level in Nigeria. Thus, this present study centres on the interactive effect of corruption and accountability on poverty level in Nigeria using secondary data for the periods of 1984 to 2022. The results of the Dynamic Ordinary Least Squares (DOLS) and Fully Modified Ordinary Least Squares (FMOLS) showed that, individually, corruption significantly increase poverty level in Nigeria, but when we considered the moderated effect, accountability mitigates the negative effect of corruption by reducing poverty level in Nigeria. The findings reveal a positive and statistically significant interactive effect of corruption and accountability on poverty reduction, confirming the role of accountability as a strong moderator necessary to cushion the negative effect of corruption in the society. The findings from this study have significant policy implications for Nigerian governments and policymakers as well as the international organizations involved in promoting good governance, accountability and poverty reduction. Policymakers can take a cue from the findings which underscore the importance of strengthening accountability and anti-corruption measures, by highlighting the need for comprehensive and effective anti-corruption strategies in Nigeria.

Keywords: Corruption; Poverty; Accountability; Nigeria; DOLS.