Erin Sams

March 22, 2019

Political Corruption and Fiscal Mismanagement Causing Instability

Executive Summary
It is highly likely that Nigeria will be unstable in the next 12 to 18 months due to political
corruption and a lack of government policy installation. The financial corruption increases
environmental degradation, economic and financial instability, and national security threats
due to social conflict and terrorism.

Discussion
Desertification severely affects employment and financial security for farmers in Northern
Nigeria: the social issues prevent the Nigerian government from implementing policies and
strategies to improve the integration of land and water, improve grazing practices, and combat
desertification and deforestation.1 In Southern Nigeria the environment is affected by oil
production and improper waste disposal. 2 The government created the Natural Oil Spill
Contingency Plan, yet the legislative acts is ineffective against the consequences of the oil
industry. 3 Furthermore, the Nigerian Army (NA) does not safely dispose of oil when
encountering the numerous black market oil refineries created by displaced Nigerian citizens.4

Corrupt politicians, who profit from the oil industry, prevent effective bureaucratic legislation
and diversification of the economy,5 which likely directly affects the wellbeing and sustainability
of most citizens.6 The economy is large and generates substantial profit, yet the labor-intensive
sector is extremely weak, which increases the unemployment rate.7 The economic complexity
rate and low GDP per capita8 show an overreliance on oil production and a lack of inclusive
development policies, which negatively affects the financial stability of Nigerian citizens.9

Boko Haram’s eight-year reign over Nigeria caused over 20 thousand deaths, the displacement
of two million people, and humanitarian assistance to 7 million people.10 Furthermore, the
herder-farmer conflict, prompted by environmental degradation and mass migration, is six
times more deadly than the Boko Haram insurgency.11 Despite a government budget allocation
of USD 5 to 6 billion dollars to the armed forces, most of the funds are filtered into the private
business sector.12 This creates inadequate funding, poor equipment maintenance, and an
understaffed military, producing an incompetence to fight against Boko Haram, oil piracy in the
South, and the farmer-herder conflict in the North.13
References

1 Unah, Linus. “Briefing: Nigerian farmers can’t fight desertification alone”. November 14, 2017.
The New Humanitarian. Accessed March 18, 2019.
22 Global Health Watch. “Oil extraction and health in the Niger Delta”. 2007. Ghwatch.
Accessed April 10, 2019.
3 Badejo, O.T. Nwilo, P.C. “Management of Oil Spill Dispersal Along the Nigerian Coastal

Areas”. Department of Surveying and Geoinformatics, University of Lagos, Lagos-Nigeria.

2019. Research Gate. Accessed April 10, 2019.
4 Ibrahim Usman Jibril. “National Statement of Nigeria at the third session of the United Nations

Environment Assembly”. 2017. UN. Accessed March 18, 2019.

5The Heritage Foundation. “2019 Index of Economic Freedom: Nigeria”. 2019. Heritage.
Accessed March 18, 2019.
6 A.O. Enofe. C.L. Oriaifoh. P. Omagbon. “Poverty and Unemployment and Corruption in
Nigerian Public Sector”. Department of Accounting, Faculty of Management Sciences,
University of Benin. 2016. Academia. Accessed April 10, 2019.
7 Smith, Noah. “How Nigeria Can Escape the Natural-Resource Curse”. October 16, 2018.

Bloomberg. Accessed April 10, 2019.

8 The Massachusetts Institute of Technology. “OEC: Nigeria”. 2017. Atlas MIT. Accessed March

18, 2019.
9 The World Bank. “The World Bank in Nigeria”. 2019. World Bank. Accessed March 18, 2019.
10Human Rights Watch. “Nigeria: Events of 2017”. 2017. HRW. Accessed March 18, 2019.
11 Udo Jude Ilo. Jonathan-Ichaver. Yemi Adamolekun. “The Deadliest Conflict You’ve Never
Heard of”. January 23, 2019. Foreign Affairs. Accessed April 10, 2019.
12 International Crisis Group. “Nigeria: The Challenge of Military Reform”. June 6, 2016.

Crisis Group. Accessed April 10, 2019.

13 International Crisis Group. “Nigeria: The Challenge of Military Reform”. June 6, 2016.

Crisis Group. Accessed April 10, 2019.