CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

Nigeria became independent in 1960, with a population of more than 150 million people, diverse cultures and abundant resources. Nigeria has a very large workforce to support the labor market and the economy, which includes different sectors, such as the agriculture sector, the energy sector, the extractive industries sector, the manufacturing sector, the banking sector, the communication sector, the transport sector. etc. (Adegoke, O. S. 1991)

Many economists have been interested in the factors that can cause growth in their countries, an important factor being transportation. The study of transport in Nigeria has become important because of the opinion of researchers who are trying to formulate a better policy that will affect the transport sector in a positive way, which will then enable an efficient transport system to be put in place. , effective and standard. As a result, the demand for transportation services in the country has increased rapidly during the year, while the supply of transportation services has decreased due to the lower infrastructure in place in the system, as a transportation system efficient and integrated, especially in the economy, stimulates national growth and development that improves the quality of life for all, facilitating the smooth movement of goods and services, and people, through the creation of vital links between separate installations in the space, which allows social contact and interaction as well as access to employment, health and education, and other services that bring civilization. For example, agricultural products generated in rural areas must be transported to urban centers for later distribution or can only be obtained by transporting these goods from one location to another. Here, transportation provides the means by which products are distributed across the country.

The evolution of the modern transport system in Nigeria can be seen from two phases, according to the Nigerian Federal Government's National Transport Policy Project of August 2010. The first phase is the colonial period that marked the origin of the modern transport system.

The networks of railways, inland waterways and roads established at that time were mainly aimed at exporting cash crops, such as groundnuts, cocoa, cotton and palm products, and importing cheap and mass produced consumer goods. These first transport systems were planned in the most economical way possible, as evidenced by substandard road and rail alignments and a sub-base, which subsequently proved inadequate for heavy vehicles. The second phase is the postcolonial period / accession to independence. With a reorientation of objectives, transport has become one of the instruments of unification of the country and an important tool for social and economic development. The development of petroleum resources from the 1950s has had a significant impact on the country's social and economic growth by imposing increasing demands on the transport system.

This study will examine the impact of transport infrastructure on economic growth in Nigeria by assessing the relationship between transport infrastructure and economic growth.

1.2 STATEMENT OF THE PROBLEM

Transportation is becoming the backbone of any economy, particularly in countries like Nigeria, because such anatomy is linked to the corruption and inefficiency of Nigeria's transportation system, coupled with low economic growth (GDP), is crucial. transport policies (lack of regulation of private carrier charges, fuel shortage and especially the predominance of bad roads due to misappropriation of funds for transport infrastructure have been successful in reducing the transport system in Nigeria, which has had an impact negative on economic growth.

Given the fact that transport infrastructure is essential for economic growth, the situation of transport infrastructure in Nigeria is poor. Recent studies by Adeniji (2000) and Innocent C. Obi (2011) show that: less than 50% of the national road network is in good or bad condition, resulting in an average depth of 50 people per day; Less than 300 000 tonnes of freight and less than 2.3 million passengers are transported by rail; More aviation accidents in the aviation sector High congestion rate in the seaport; and more pipeline vandalism. When all these losses are added to the economic cost of the loss of productive hours of work, it becomes obvious that the situation requires urgent attention. It is in this context that this study seeks to study the impact of corruption on transport and economic growth in Nigeria. Growth as part of a democratic derogation (1999 -2018).

1.3 OBJECTIVE OF THE STUDY.

The broad objective of this study is to examine the Impact Of Corruption On Transportation And Economic Growth In Nigeria Growth Under Democratic Dispensation (1999 -2018)

The specific objectives of the study are as follows:

I.        To examine whether corruption in transportation affects Nigeria GDP

II.       To describe the situation of transportation infrastructure in Nigeria.

III.      To evaluate the empirical linkage between transportation and economic growth.

IV.     To access the channel through which transportation affect economic growth.

1.4  RESEARCH QUESTIONS.

Based on the problems of the research topic, the research questions are as follow:

I.        Does corruption in the transportation sector undermines Nigerian  GDP?

II.       what is the situation of transportation infrastructure in Nigeria?

III.      what is the empirical linkage between transportation and economic growth?

IV.     what channel does transportation work through to affect economic growth?

1.5 RESEARCH HYPOTHESIS

 Corruption in transportation does not undermine economic growth in Nigeria

Corruption in transportation does undermine economic growth in Nigeria

1.6 SCOPE OF THE STUDY

This work is anchored on Corruption On Transportation And Economic Growth In Nigeria Growth. The work lay emphasizes Under Democratic Dispensation between the period of 1999 -2018.

1.7 SIGNIFICANCE  OF THE STUDY

The study is justified by the need to provide an empirical understanding of the Impact Of Corruption On Transportation And Economic Growth In Nigeria Growth Under Democratic Dispensation and how it influences the development process. Thus, there is no doubt that transportation is essential in the operation of a market economy; Planners needs guidance based on solid grounds, to aid in their decision to improve existing transportation and build new infrastructure. As stated by Boopen(2006), Transport improvement has an opportunity cost in terms of alternative investment that can be carried out by the government. To ensure that resources are well allocated, policymakers need to have an empirical base on which to draw their plan. An empirical knowledge of how transportation infrastructure improvement will affect economic growth need to be established so that an adequate plan can be made for the transport sector. Also, there is a need to have a direct linkage between corruption practices in the transport industry and economic growth.

To the people, this study will enlighten them more on the importance of having a better transport system; To students and researchers, this study reveals the current situation in the sector by adding to the work done by other researcher so as to provide base for future research; To the policymaker this study will reveal the state of corruption in the transport system across the country making them known that more funds and implementation of policy already made is needed critically to be in place in the sector and to be squandered or embezzled.

1.8 DEFINITION OF TERMS

Corruption; Aduda (2007); Svensson (2005, 20); Tanzi (f998, 564) and Transparency International (Tl 2003 and 2009) define corruption as the abuse or misuse of public office or power for private gain or benefit. Public office is abused when officials accept, solicit, or extort a bribe and when private agents offer bribes to circumvent public policies and processes for competitive advantage and profits.

Transportation: is the movement of humans, animals and goods from one location to another. In other words, the action of transport is defined as a particular movement of an organism or thing from a point A to a Point B Ladipo (2000)

Economic growth: This is an increase in the capacity of an economy to produce goods and services, compared from one period of time to another. ... Traditionally, aggregate economic growth is measured in terms of gross national Product (GNP) or gross domestic product (GDP),