CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
The general consensus among economists and policy analysts at the World Bank, the International Monetary Fund (IMF), and other international agencies is that corruption is a universal problem, but with more debilitating effects felt in emerging and developing countries, such as those found in Africa, Asia and Middle East (Oyedoyin, 2012). In light of this, Aluko (2009) opined that corruption is a global phenomenon and that, it is not the exclusive preserve of any nation, race or section of the world but transcends national boundaries and frontiers and symbolizes phenomenal universal unwholesomeness of political leadership that often promotes income inequality and endemic poverty.
In Nigeria corruption is a common word used by both adults and children because it is found in every aspect of the country. This monster called corruption has now been nick named in most Nigerian languages especially in the three major languages! Ndokwu (2004) says: the Igbos call it Igbuozu, the Yorubas call it Egunje while the Hausas call it Chuachua. People no longer frown or feel ashamed to engage in corrupt practices! Chuachua/Egunje or Igbuozu is now acceptable and it is possible to hear someone openly complaining that there is no Chuachua, Egunje or Igbuozu at his or her place of work and as such a person might quickly resign if he or she finds another work where there is opportunity for Chuachua. It is as bad as that!
This menance has led to situations like slow movement of files in offices, police exortion of toll fees, port congestion, queues at passport offices and petrol stations, ghost workers syndrome, election irregularities, unprecedented poverty in the land, economic inequality among other socio-economic vices (Dike, 2005: Ngwakwe, 2009: Aluko, 2009).
Government officials further still corruptly enrich themselves by converting Government money in their custody to their own use, force citizens to pay bribe money, and citizens also induce the officials with bribes to get whatever they want from Government or company offices. Though corruption is found in every society, it is very common in Nigeria, and no one seems to be free from it either as a doer or as a victim (Ucha, 2010).
The need to catalyze balanced development, bridge the inequality gap, reduce the rate of poverty, maximize citizen's participation, and arouse government responsiveness to the grassroot communities necessitates the creation of the local government. The local government serves as a form of political and administrative structure facilitating decentralization, national integration, efficiency in governance, and a sense of belonging at the grassroot. The local government is a unit of administration all over the world (Agagu, 2004). Although it is a universal institution, it however exists in different forms and in different political systems. Whatever the form of existence, the local government has been essentially regarded as the path to and guarantor of administrative efficiency, effective service delivery and participatory development (Arowolo, 2005). It is a critical tier of government because of its closeness to the people (Mathias & Rose, 2015). Local government appeals to both the people and government as a feedback institution that relays the opinions and demands of the grassroot to a higher government (Adejo, 2003).
The fundamental challenges battling grassroot development in Nigeria has been one of high level corruption and its twain demons of poverty and economic inequality which have continue in this 21stcentury to inflict untold hardship on the local populace. Government have often initiated and enacted policies to bridge the gap between the rich and the poor. But in the face of all these the income inequality between the people at the grassroot and urban areas in Nigeria is remarkably high and thus call for answers. Hence, this study seeks to explore the effect of corruption on inequality and poverty at the grassroot levels in Nigeria.
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