Privatisation and accountability in a “crony capitalist” Nigerian state

Owolabi Bakre, Sarah Lauwo

Research output: Contribution to journalArticle

Abstract

Nigeria is richly endowed with oil and gas resources, but the country’s continued reliance on loans from international financial institutions raises questions about the transparency and accountability of its utilisation of the huge revenues resulting from these two resources. In order to attract international capital to bolster its revenues from sales of oil and gas, a huge proportion of which continues to be used corruptly, the World Bank has encouraged the Nigerian government to subscribe to neoliberal economic policies by enlisting accounting firms and privatising state-owned enterprises. Key justifications for this have included enhancing accountability, reducing public-sector corruption, promoting market efficiency and attracting international capital. However, this paper presents evidence of the role of accounting in the undervaluation of assets, concealment of possible malpractice, and subversion of the accountability that it should have delivered in the privatisation process. The assumption that accounting will enhance accountability, reduce public-sector corruption and promote market efficiency in privatisation, and ultimately attract investment into a crony capitalist Nigerian state, appears to be an illusion created partly through the apparent legitimacy of accounting.
Original languageEnglish
Pages (from-to)45-58
Number of pages14
JournalCritical Perspectives on Accounting
Volume39
Early online date21 Jan 2016
DOIs
Publication statusPublished - 21 Jan 2016

Fingerprint

privatization
responsibility
corruption
revenue
public sector
efficiency
market
subversion
World Bank
resources
Economic Policy
loan
transparency
sales
Nigeria
assets
legitimacy
utilization
firm
Privatization

Bibliographical note

© 2016, Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International http://creativecommons.org/licenses/by-nc-nd/4.0/

Keywords

  • privatisation
  • cronyism
  • accounting
  • state-owned enterprises
  • international financial institutions

Cite this

@article{ee366558350a48288e4421de96521ddf,
title = "Privatisation and accountability in a “crony capitalist” Nigerian state",
abstract = "Nigeria is richly endowed with oil and gas resources, but the country’s continued reliance on loans from international financial institutions raises questions about the transparency and accountability of its utilisation of the huge revenues resulting from these two resources. In order to attract international capital to bolster its revenues from sales of oil and gas, a huge proportion of which continues to be used corruptly, the World Bank has encouraged the Nigerian government to subscribe to neoliberal economic policies by enlisting accounting firms and privatising state-owned enterprises. Key justifications for this have included enhancing accountability, reducing public-sector corruption, promoting market efficiency and attracting international capital. However, this paper presents evidence of the role of accounting in the undervaluation of assets, concealment of possible malpractice, and subversion of the accountability that it should have delivered in the privatisation process. The assumption that accounting will enhance accountability, reduce public-sector corruption and promote market efficiency in privatisation, and ultimately attract investment into a crony capitalist Nigerian state, appears to be an illusion created partly through the apparent legitimacy of accounting.",
keywords = "privatisation, cronyism, accounting, state-owned enterprises, international financial institutions",
author = "Owolabi Bakre and Sarah Lauwo",
note = "{\circledC} 2016, Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International http://creativecommons.org/licenses/by-nc-nd/4.0/",
year = "2016",
month = "1",
day = "21",
doi = "10.1016/j.cpa.2016.01.003",
language = "English",
volume = "39",
pages = "45--58",
journal = "Critical Perspectives on Accounting",
issn = "1045-2354",
publisher = "Academic Press Inc.",

}

Privatisation and accountability in a “crony capitalist” Nigerian state. / Bakre, Owolabi ; Lauwo, Sarah.

In: Critical Perspectives on Accounting, Vol. 39, 21.01.2016, p. 45-58.

Research output: Contribution to journalArticle

TY - JOUR

T1 - Privatisation and accountability in a “crony capitalist” Nigerian state

AU - Bakre, Owolabi

AU - Lauwo, Sarah

N1 - © 2016, Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International http://creativecommons.org/licenses/by-nc-nd/4.0/

PY - 2016/1/21

Y1 - 2016/1/21

N2 - Nigeria is richly endowed with oil and gas resources, but the country’s continued reliance on loans from international financial institutions raises questions about the transparency and accountability of its utilisation of the huge revenues resulting from these two resources. In order to attract international capital to bolster its revenues from sales of oil and gas, a huge proportion of which continues to be used corruptly, the World Bank has encouraged the Nigerian government to subscribe to neoliberal economic policies by enlisting accounting firms and privatising state-owned enterprises. Key justifications for this have included enhancing accountability, reducing public-sector corruption, promoting market efficiency and attracting international capital. However, this paper presents evidence of the role of accounting in the undervaluation of assets, concealment of possible malpractice, and subversion of the accountability that it should have delivered in the privatisation process. The assumption that accounting will enhance accountability, reduce public-sector corruption and promote market efficiency in privatisation, and ultimately attract investment into a crony capitalist Nigerian state, appears to be an illusion created partly through the apparent legitimacy of accounting.

AB - Nigeria is richly endowed with oil and gas resources, but the country’s continued reliance on loans from international financial institutions raises questions about the transparency and accountability of its utilisation of the huge revenues resulting from these two resources. In order to attract international capital to bolster its revenues from sales of oil and gas, a huge proportion of which continues to be used corruptly, the World Bank has encouraged the Nigerian government to subscribe to neoliberal economic policies by enlisting accounting firms and privatising state-owned enterprises. Key justifications for this have included enhancing accountability, reducing public-sector corruption, promoting market efficiency and attracting international capital. However, this paper presents evidence of the role of accounting in the undervaluation of assets, concealment of possible malpractice, and subversion of the accountability that it should have delivered in the privatisation process. The assumption that accounting will enhance accountability, reduce public-sector corruption and promote market efficiency in privatisation, and ultimately attract investment into a crony capitalist Nigerian state, appears to be an illusion created partly through the apparent legitimacy of accounting.

KW - privatisation

KW - cronyism

KW - accounting

KW - state-owned enterprises

KW - international financial institutions

U2 - 10.1016/j.cpa.2016.01.003

DO - 10.1016/j.cpa.2016.01.003

M3 - Article

VL - 39

SP - 45

EP - 58

JO - Critical Perspectives on Accounting

JF - Critical Perspectives on Accounting

SN - 1045-2354

ER -