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Abstract
This had examined the institutionalized corruption and its effects on national development. They showed the concept of institutional corruption and national development, challenges facing institutions in Nigeria; identify institutional corruption in Nigeria, and the effect of institutionalized corruption on Nigeria development. The study showed that corruption is generally defined as ‘misuse of public office for private gain’. Constitution of a country broadly defines rights and obligations of the public and the framework of the legislature in making laws and regulation and independent judiciary to interpret and enforce the constitution. When one says ‘broadly defined’, it implies certain degree of discretionary powers in the hands of the legislature and judiciary in making and enforcing laws. The degree of discretion could be a source of corruption in a country.