Road Quality Guarantees in Nigeria: An Anticorruption Approach Off the Beaten Path

To say it is hard to get around in Nigeria is an understatement. Only about 30% of Nigeria’s roads are paved. And even the paved roads are in terrible condition, with crater-sized potholes, stagnant pools of water, floods of waste, and disintegrating tarmac. Everyday commuters, who often sit in traffic for up to five hours daily, regard Nigeria’s roads as “death traps,” “deplorable,” and “dilapidated.” The low quality of Nigeria’s roads not only increases insecurity but also poses a major impediment to economic progress.

The poor quality of roads is not the result of insufficient funding allocated for road construction. Indeed, the Nigerian government has spent enormous amounts of money on road construction projects (approximately $922.2 million just last year). If this money was going where it was supposed to go, Nigeria’s roads should at least be decent. But the money is not going where it’s supposed to go. Very often construction firms bribe public officials to secure road contracts, and then the firms recoup the loss of the bribe by using low quality materials and substandard construction methods, resulting in roads that do not last even up to seven years. In some cases, contractors simply pocket the government money and disappear, abandoning their projects but simply pocket the government money and disappear. To take an especially high profile example of how massive road projects can be tainted by suspicions of corruption, a recent $13 billion highway project, commenced by President Tinubu in May 2024, was awarded—with no regard for a public bidding process—to a company of whose subsidiary Tinubu’s son is a director. In fact, Tinubu’s son owned an offshore company with the son of the tycoon who received the contract. (In 2000, that tycoon was convicted of money laundering and helping the Abacha regime siphon at least $120 million from the Central Bank of Nigeria.) This road project has been criticized for its lack of transparency, alleged fraud, and risk of noncompletion.

In short, corruption is one of the most significant reasons for Nigeria’s terrible road system. But the most effective way to improve road quality in Nigeria is to focus not directly on the corruption—even though that is the root cause of the problem. Of course, corrupt acts, in this context and others, should be caught and punished. But, rather than relying primarily on detecting and punishing corruption, the more effective way to address this problem would be to establish effective mechanisms to hold contractors and public officials accountable for the quality of the roads that are ultimately built. Enforcing performance standards will reduce incentives to engage in corruption—at least the sorts of corruption that have a significant adverse impact on quality.

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