Facing Up To Corruption in Nigeria (original) (raw)

Nigeria is one of the most vibrant markets in Africa, with an entrepreneurial business culture and recent reforms in the banking sector that have won international plaudits. Foreign investment historically has been dominated by oil and gas, but has broadened substantially in recent years into finance, private equity, power, telecoms, consumer products and mining. However, despite Nigeria’s size, and the energy and talents of its people, it has failed to achieve its full potential. The reasons include poor leadership, poor infrastructure and a history of high levels of corruption. The Nigerian market has long been notorious for graft, partly as a result of the country’s reputation as the world leader in financial crime, but also because of the systematic abuse of its oil wealth over several decades by the political class. As a result, many leading investors that might otherwise have flocked to the country have stayed away. Against this background, this report seeks to answer one simple question: is it possible to do business successfully in Nigeria without involving employees in corrupt practices? The report draws both on Control Risks’ own experience in Nigeria and on the findings of more than 30 specially conducted interviews with senior executives, lawyers, journalists and officials. We wanted to know what strategies succeeded, and, if they failed, why they failed. Sceptical assessments remain commonplace, and none of our interviewees could offer a ‘silver bullet’ that would avoid all graft-related problems. Nevertheless, experience shows that it is possible to avoid corruption with a combination of good management, diplomatic skill and determination verging on bloody-mindedness. The report presents a distillation of our interviewees’ experiences. We share their view that Nigeria presents a particularly tough business environment. It may not be possible to win every battle. Resisting corruption demands a heavy investment of time, determination and ingenuity. Nevertheless, we believe that it is possible for companies to face up to corruption in Nigeria, and that this is an essential ingredient of ultimate commercial success.