Effect of Corruption on Crude Oil Revenue Earnings in Nigeria (1996-2015)

This study examines the effect of corruption on crude oil revenue earnings in Nigeria (1996-2015). It investigates the extent to which corrupt practices and oil prices can affect crude oil revenue earnings. To achieve these objectives, secondary data for Total Crude Oil Revenue Earnings (OILRE), Corruption Perception Index (CPI) as a measure for Corruption and Crude Oil Price of Bonny Light (OILP) from 1996-2015 were culled from Central Bank of Nigeria Statistical Bulletin, World Bank data base, Index mundi data base and Transparency International data base. Time series econometric techniques (ADF Unit Root Test, Johansen Co-integration Test, Error Correction Mechanism and Ordinary Least Square) were used for data analyses. The results show empirical evidence of a negative implication of CPI on OILRE, but no significant statistical relationship between CPI and OILRE in Nigeria. It also indicates a significant statistical long run relationship between OILP and OILRE in Nigeria. However, the study concludes that though corruption has a negative implication on total crude oil revenue earnings in Nigeria, but its effect is not significant. Hence, the study recommends that the services of EFCC and ICPC should be devoid of government interference, as well as the implementation of stiffer penalties on those found guilty of corruption