Nigeria's Scam Economy: How Fraud Has Become Embedded in Governance and Daily Life
Nigeria's economy is dominated by a scam economy where fraud is systemic, embedded in governance, business, and survival. Scams range from bureaucratic bottlenecks for bribes to extortion by security agencies, with banditry, kidnapping, and terrorism functioning as money spinners benefiting political, military, and religious entrepreneurs. Fraud has evolved through iterations like Ponzi schemes, corrupt privatization, and fake universities, with real estate serving as a vault for illicit wealth. Governance operates as extraction, with officials profiting from social funds and infrastructure projects serving political repayment. Daily life involves widespread adulteration of products and services, while institutions like education and regulation are weaponized for extortion. The moral collapse sees honesty as naïve and integrity penalized, with trust in institutions eroding. The core issue is the collapse of trust, making reform essential to reward integrity and punish fraud.