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This research aims to analyse neopatrimonialism and clientelism, which are at the root causes of corruption in the Nigerian state. The basis of this inquiry stems from the fact that although Nigeria is blessed with numerous natural and mineral resources, ranking 10th in the world in her oil reserves; it has struggled to produce fruits of good governance and is besieged with high levels of corruption, sleaze and maladministration. Because of the culture of neopatrimonialism, clientelism and rent-seeking, which is pervasive in the Nigerian system, it has been reduced to a rentier state, where rents or illegal proceeds has made a very small class of people incredibly wealthy. As Osaghe accurately notes, the giant has been reduced to a Liliput and Nigeria is an example of the oil curse. This research will therefore focus on explaining these different facets of corruption in the Nigerian state, especially in her oil sector, the causes of such sleaze, how corruption has left Nigerians bereft of good governance, solutions and the numerous challenges, which it faces in combating this disease. It also explains how corruption has undermined development efforts in the system.