RENT-SEEKING: AS A SYMPTOM OF A RESOURCE CURSE!

 

Rent-seeking is an attempt to enhance one's portion of the current wealth without producing new wealth. As a consequence of resource misallocation, rent-seeking effects economy negatively. In Nigeria, rent-seeking has become the most "prominent activity"(Ogwumike & Ogunleye 2008, as cited in Elwerfelli, 2018). With regional and ethnic rivalry for oil income, the political system in Nigeria became one of institutional patronage (Jensen and Wantchekon 2004). Although the political climate has improved recently, the nation was ruled for many years by military administrations that were repeatedly overthrown in military coups. As a result of counter-coup attempts and subsequent civil conflicts, the military leaders themselves were at risk of ethnic hostilities. In 1966, a coup d'état was staged by the military. After the tumultuous military operations of 1966, Yakubu Gowon ruled Nigeria for almost 10 years. When the oil boom was just getting started, he presided over the early years of it all. As evidence of corruption grew in the wake of the oil boom, the military was forced to step in once again. In July 1975, General Murtala took over from Gowon, pledging a quick transition to civilian administration, more economic transparency, and administrative reform. Once again, the military promised to take steps to correct the situation. Gen. Buhari ended the civilian government in 1983, saying his dictatorship would reduce corruption, after four years in office, the spiral of repression, destruction of the economy, and authoritarianism resulted in the demise of key government institutions, including the military and central bureaucracy.

The economy suffered during Abacha's regime due to a lack of budgetary discipline and widespread corruption. During his four-and-a-half years in office, Abacha is reported to have acquired a wealth of about $6 billion, the level of massive root of public funds plundered the economy into a mess. With the Nigerian severe hardship and social concerns, the politicians demonstrate little ability to handle them. As a result, the nation was plagued by political unrest and civil war, making it the least likely place in the world for oil riches to spur economic growth. according to Ologunla et al.