Public Sector Reforms and the Political Economy of Anti-Corruption Policies in Nigeria

1. Introduction

Public sector reforms and anti-corruption policies are essential components of governance in Nigeria, particularly as the country grapples with the systemic issues that hinder economic development and democratic consolidation (Ogbuagu, 2021). Ogbuagu emphasizes the need for systemic reforms that go beyond mere political statements to ensure institutional integrity. Since the post-independence era, corruption has plagued Nigeria’s public sector, undermining trust in institutions, curtailing development, and perpetuating inequality. The political economy of anti-corruption policies in Nigeria is not merely about prosecuting individuals for corrupt practices but involves understanding the broader political and economic context in which corruption flourishes.

This period is characterized by a renewed push towards addressing corruption and strengthening public institutions, fueled by both domestic and international pressures. At the heart of these efforts is a desire to create a more efficient, transparent, and accountable public sector that can drive Nigeria’s economic transformation (Adedeji, 2022). Adedeji’s argument underscores the importance of aligning economic policies with anti-corruption initiatives to create a sustainable impact. Nigerian authors and scholars have increasingly focused on understanding how public sector reforms are interconnected with the broader political economy of anti-corruption strategies (Nwachukwu, 2024). He highlights the tension between political actors who publicly champion anti-corruption measures and their reluctance to enact real change due to vested interests, especially in the face of elections or power shifts.

Nigeria’s political landscape during this period has been marked by a dual struggle: tackling corruption while ensuring that political elites who may benefit from corruption do not subvert these reforms for their own gain (Olufunke, 2025). Olufunke’s work suggests that the dynamic nature of Nigerian politics may slowly lead to a positive transformation in governance practices. There is growing recognition that reforms cannot succeed without addressing the power structures that allow corruption to thrive (Okonjo-Iweala, 2023). Her work highlights the need for institutional reforms that go beyond political cycles and extend into the very fabric of Nigerian society. The political economy of anti-corruption in Nigeria is an intricate balance of State policies, economic interests, and political maneuvering.

1.1. Statement of the Problem

Nigeria has long struggled with corruption, particularly within its public sector. Despite several reforms and policy initiatives aimed at tackling this issue, corruption remains endemic, with limited progress in creating a transparent, accountable, and efficient public administration system. The problem is compounded by the political economy that underpins the relationship between political elites, bureaucratic structures, and economic interests that enable corruption to persist. While several anti-corruption policies have been implemented by successive governments, the impact of these policies remains inconclusive due to weak enforcement, political interference, and a lack of institutional strength.

1.2. Objective of the Paper

The primary objective of this paper is to critically analyze the relationship between public sector reforms and anti-corruption policies in Nigeria within the context of the political economy. Specific objectives include:

1. Analyze the political economy of anti-corruption policies in Nigeria, focusing on how political, economic, and social factors influence the design, implementation, and success of anti-corruption strategies.
2. Investigate the role of political elites and their impact on the success or failure of anti-corruption initiatives, especially considering their vested interests in maintaining the status quo of corruption.
3. Assess the broader institutional and structural challenges that hinder the successful implementation of anti-corruption reforms and policies in the public sector.

1.3. Research Questions

• How effective have public sector reforms been in curbing corruption in Nigeria?
• What are the key political and economic factors that shape the design and implementation of anti-corruption policies in Nigeria?
• How do political elites and their vested interests influence the success or failure of public sector reforms and anti-corruption policies?
• What institutional or structural challenges have impeded the effective implementation of anti-corruption policies in Nigeria’s public sector?
• To what extent have anti-corruption reforms led to institutional change within the Nigerian public sector?

2. Review of Related Literature

In understanding the complexities of public sector reforms and anti-corruption policies in Nigeria, it is essential to define and contextualize key concepts that form the foundation of this study. A conceptual framework provides a structured approach to understanding how the public sector operates within the political economy of Nigeria and how reforms and anti-corruption efforts intersect.

2.1. Conceptual Framework

The conceptual framework in this study is primarily built around several core ideas: the public sector reform process, the political economy of corruption, and the anti-corruption policies implemented by the Nigerian government. Public sector reforms refer to the systematic efforts aimed at improving the effectiveness, efficiency, and accountability of government institutions. Scholars have argued that reforms alone, without a structural transformation of the political and economic system, cannot adequately address corruption (Adedeji, 2022). Adedeji notes, “Public sector reforms in Nigeria must go beyond cosmetic changes in institutions and address the fundamental political and economic structures that perpetuate inefficiency and corruption.”

One example of recent public sector reforms is the Integrated Payroll and Personnel Information System (IPPIS), which aims to reduce the number of ghost workers in the federal government payroll. However, its implementation has faced challenges due to resistance from political elites who benefit from unaccounted for public funds. The concept of the political economy of corruption refers to the way in which political structures, economic interests, and social dynamics facilitate or hinder corrupt practices. Ngozi Okonjo-Iweala (2023) observes: “Corruption in Nigeria is not just about individual greed; it is a structural feature of a political economy that rewards patronage and political loyalty over merit and public service.”

2.2. Empirical Review

Public sector reforms in Nigeria have focused on enhancing transparency, improving payroll systems, reducing inefficiencies, and streamlining financial management. Key reforms such as the Treasury Single Account (TSA) and the Government Integrated Financial Management Information System (GIFMIS) have been central to Nigeria’s efforts. While the TSA consolidates all government revenue into a single account to control leakage, its full impact is often stifled by entrenched interests within government agencies and poor enforcement mechanisms (Nwachukwu, 2024).

Nigeria has made significant strides in implementing anti-corruption policies through agencies like the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offenses Commission (ICPC). However, their efforts are often undermined by judicial delays, political interference, and a lack of political will to fully support these agencies. Okonjo-Iweala (2023) highlights that political elites tend to co-opt anti-corruption agencies to target political opponents, weakening the credibility of the fight against corruption.

2.3. Theoretical Framework

This analysis integrates various theories to explain the persistence of corruption in Nigeria:

• Institutional Theory: Suggests corruption is deeply embedded within weak political and administrative structures.
• Principal-Agent Theory: Explains how agents (civil servants) are incentivized to exploit positions for gain when principals (leaders) tolerate such behavior in exchange for loyalty.
• Patronage Theory: Posits that in systems where loyalty is traded for economic gain, corruption is normalized and institutionalized.
• Political Economy Theory: Examines the relationship between politics and power structures, specifically Nigeria’s reliance on oil revenues which sustains the economic model of patronage.

3. Research Methodology

This study uses a mixed-methods approach, combining qualitative and quantitative research techniques. In-depth interviews and focus group discussions with key stakeholders (government officials, policy analysts, and representatives from civil society) provided rich, descriptive data. Surveys were distributed to a sample of 300 stakeholders to measure perceptions of the effectiveness of public sector reforms and the role of political elites.

Table 1: Effectiveness of Public Sector Reforms in Curbing Corruption

The interpretation of the data suggests that while IPPIS and TSA have had a positive impact, the perception of their effectiveness remains moderate due to persistent implementation challenges and variability in stakeholder experiences.