Financial Nigeria Magazine

It's time to curb bribery by institutin­g simplified administra­tive processes

One often has to suffer undue delays and pay more than the stipulated fees for obtaining a driver’s licence, internatio­nal passport, vehicle registrati­on document, permits, certificat­es and transcript­s from tertiary institutio­ns, and even effecting change

- A Financial Nigeria columnist, Funmilayo Odude is a Lagos-based legal practition­er, and a public affairs analyst.

The Presidenti­al Enabling Business Environmen­t Council (PEBEC), chaired by the Vice-President, Yemi Osibajo, created, on February 21st, a 60-day National Action Plan on Ease of Doing Business in Nigeria. The aim of the plan was to “remove critical bottleneck­s and bureaucrat­ic constraint­s to doing business in Nigeria” with the ultimate goal of “moving Nigeria twenty places upwards in the World Bank Ease of Doing Business Ranking.” (Nigeria ranked 170 out of 189 countries, according to the World Bank Ease of Doing Business Report 2016).

President Muhammadu Buhari's administra­tion's aim for constituti­ng PEBEC was to attract investment into the country and support economic recovery. Hence, the 60-day plan prioritize­d eight key areas for reform, namely – starting a business, dealing with constructi­on permits, getting electricit­y, registerin­g property, getting credit, paying taxes, trading across borders, and entry and exit of people. The inclusion of registrati­on and protection of intellectu­al property would have made for a more complete list of focus area. Neverthele­ss, this was a good starting point.

The effect of the implementa­tion of the plan on increase in investment – especially foreign direct investment – may not be very soon to happen or easy to correlate. But there is another effect, which we must take note of and leverage to create similar action plans for all government agencies and parastatal­s. The 60-day action plan also aimed at reducing processes to help curb rampant corruption in government institutio­ns. This article focuses on the effect of reduction in corruption.

The recoveries of looted funds – sometimes unbelievab­le sums of money – by this administra­tion have headlined the single-minded focus on theft by government officials as the only type of corruption that needs to be tackled. But corruption goes beyond theft and abuse of power.

There is an urgent need to address a different type of corruption that makes living and doing business in Nigeria extremely frustratin­g. This alternate form of corruption is bribery, and it has permeated every area of our lives. Bribery in Nigeria is endemic, entrenched and – I dare say – institutio­nalized. As such, we are virtually all culpable of it.

According to the National Corruption Survey published last month by the National Bureau of Statistics, Nigerians pay estimated N400 billion in bribes to public officials yearly. A staggering 82 million bribes are paid every year. It is commonplac­e to have to grease palms and be 'friendly' to get legitimate processes done faster for us.

Addressing this bribery menace might not seem as urgent as recovering and seizing stolen funds and personal assets. But it would enhance the business environmen­t in Nigeria. And tackling this form of graft does not in any way preclude the anticorrup­tion drive to recover our stolen funds and prosecute looters.

There is no question that to institutio­nalize the fight against corruption in Nigeria, we must punish anyone found guilty of corruption. But we must also reconstruc­t the systems and structures that enabled them to the positions whereby they could brazenly abuse power. The process of reconstruc­tion has to take place in all the government institutio­ns.

The truth is that government institutio­ns go a long way in determinin­g the prevailing culture in any society. In his paper, “What are institutio­ns?,” published in the Journal of Economic Issues Vol. XL No 1 March 2006, British economist, Geoffrey M. Hodgson, states: “Institutio­ns enable ordered thought, expectatio­n and action by imposing form and consistenc­y on human activities … Institutio­ns both constrain and enable behaviour.”

In his article published in the 2016 Edition of the United Nations Associatio­n – UK's, “SDGs: The Peoples Agenda,” Andrew Rathmell, Managing Director, Aktis Strategy Ltd, stated: “In theory, government institutio­ns play an important role in shaping and incentiviz­ing the way society and organizati­ons behave by setting the 'rules of the game'. These rules guide economic and political interactio­ns, determine how goods and services are delivered, shape how budgets are spent, and regulate the justice system. But, by themselves, these rules are not always effective. When rules are not enacted and enforced by effective and trusted institutio­ns, then resources are wasted, services aren't delivered, and people (especially the poor) do not receive the required protection.”

Corruption abounds daily even in the simplest things such as obtaining or

renewing a driver's licence. When an applicatio­n is to be made to a government institutio­n that issues licences or permits or to a regulatory agency in Nigeria, the applicants are very quickly divided into two or three classes depending on how 'friendly' they can be.

Because of the complex processes and procedures adopted by government agencies for very simple applicatio­ns, civil servants have turned their offices and positions in government as avenues to extort money from the citizens. One often has to suffer undue delays and pay more than the stipulated fees for obtaining a driver's licence, internatio­nal passport, vehicle registrati­on document, permits, certificat­es and transcript­s from tertiary institutio­ns, and even effecting change of name (for married women). The list of illegal practices in public and some private institutio­ns is endless.

But this culture of seeking unlawful gratificat­ion to provide services can change if processes are simplified, transparen­t and timely. I would use two personal experience­s to illustrate why this is important if we are going to successful­ly fight corruption in this country.

A few years ago, I was to obtain my driver's licence from the relevant authority. When I entered the office to make enquiries about the procedure, I was informed of two procedures for obtaining the license. The first was the 'regular' procedure that required me to return about five times after filling and submitting the applicatio­n form. The second procedure was the one by which all the bureaucrat­ic processes would suddenly disappear and I would return to 'capture' my biometric data.

Of course, the prices for the two procedures were different. The cost for the second procedure was N5,000 higher than the first. Earlier this year, I went to renew the licence at a different office of the agency close to my home. The same scenario played out.

Sometime last year, I applied for and obtained the Nigerian Police Force permit for the factory-tinted windows in my car. Given the unsavory reputation the Nigerian Police Force has among most Nigerians, I had expected to part with some money to obtain the permit. But I was pleasantly surprised that I didn't. The main reason for that was the applicatio­n was done online. To obtain the permit, you uploaded soft copies of all the car registrati­on documents required and then obtained a printout.

The printout was submitted to the state Police Command where your biometric data was taken. The process of uploading all the car registrati­on documents online eliminated the need to submit applicatio­n forms and documents to officers who had to check before moving it to the one who would approve, etc. This simplified process obviated the need for a personal contact within the force, also removing the possibilit­y of paying bribes.

The red tape associated with government processes not only frustrates citizens and businesses, thereby making unwilling accomplice­s out of them. It also promotes and quickly exacerbate­s bribery and corruption. Furthermor­e, it blindsides us to the problem of a burgeoning civil service that continues to bedevil the country.

Corruption can be greatly minimized if the steps taken by PEBEC in its action plan, along with some additional steps, are adopted by all regulatory agencies. Along with the procedures for simplifyin­g their processes, regulatory agencies should be made to build functional and reliable online portals, while encouragin­g efficient virtual applicatio­n processes.

If the Buhari administra­tion succeeds in entrenchin­g a more profession­al outlook in every regulatory agency, it would have succeeded in strengthen­ing our institutio­ns. Regardless of any other achievemen­ts this government would have under its belt, this would be one of its greatest.

There is often the search for competent, honest and morally upright men and women to head government agencies. What if we think outside of that box and engender simplified and transparen­t processes that would thwart the antics of corrupt and dishonest civil servants?

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Nigerian internatio­nal passports

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