The recent insecurity posing threat to our national unity and cohesion is making a mess of any assessment on the growth of the economy. Incessant killings, banditry and terrorism are some of the obvious insecurity in Nigeria today, with religious and ethnic extremism and intolerance serving as the primary underpinnings. An assessment of the lives and property destroyed is becoming a herculean task as the days go by.
And without doubt the importance of security in ensuring sustainable long-term economic growth and development cannot be over-emphasised. Like any other nation, Nigeria’s economic stability is closely tied to its national security.
Recently, Governor Babagana Zulum of Borno state cried out that Boko Haram terrorists have taken over three local government areas. This was a at a time, we all assumed the Boko Haram war was coming to an end. The destruction of lives and property in the North-central has remained unresolved. There is also the ethnic, religious, or herder farmers’ issues. Surprisingly, we all know the drivers of insecurity in Nigeria.
Everyday in Nigeria the story is about communal clashes as it happened in Osun state lately over land, kidnapping for ransom or ritual killing as in South-west and South-east, banditry for tax collection from farmers to access to their farms or ransom payment in cash or kind form of food, motorbike, etc.
Meanwhile, government efforts to combat insecurity have been ongoing for over a decade with mixed results.
Today, insecurity has constrained the ability of many farmers to access their farmlands, while some are forced to pay bandits and terrorists groups to gain access to their farmlands for planting and harvesting. This translates to suboptimal agricultural output, scarcity, and higher food prices.
This eventually impedes our ability to attain self-sufficiency in food production, which is fueling increased food importation and putting pressure on the external reserves. In addition, the rising level of insecurity constitutes a major drag on investor confidence, which is negating foreign direct investment (FDI) inflows.
Nigeria recorded $699 million in FDI inflows in 2024, the lowest since 2013
The widespread insecurity in the country has led to the disruption of agricultural production, which are the largest employer of labour and the largest economic sector in the country (25.9% of GDP in 2021).
The country’s level of insecurity and the implications for business cannot be overstated. Heightened uncertainty and instability hinder business operations, including production, marketing, and distribution. Nigeria’s high food inflation rate, which stood at 23% in April 2025, is largely attributed to the increasing scourge of insecurity in the country’s Northern region.
Communal clashes and banditry, in addition to farmer-herder disputes, have raged unabated in Nigeria’s North-central zone, spreading to neighbouring states, including the South-west zone. In many cases, the country’s security situation has resulted in the suspension of commercial operations and expansion plans, thereby increasing unemployment and poverty levels. Lower-income earners are more vulnerable to reduction in purchasing power, job losses, and a lack of access to basic financial services that can help mitigate disruptions during periods of conflict.
Insecurity has also hampered access to raw materials in certain locations, thus disrupting production cycles and driving up costs. Many transportation and logistics providers are charging higher fares to specific regions, as security risks are being factored into the fares.
According to the National Bureau of Statistics (NBS), the average air fare charged for specified routes is up 28.26% in 2024, while the average charge for intercity bus journeys is up 35.65% within the same period
We are confronted with addressing Nigeria’s worsening security impact on the economy, which is key to stimulating investments that would support long-term economic growth and job creation.
Having highlighted these critical issues, we must proffer solutions. Let’s look at a possible solution. First, it’s crucial to put Nigeria firmly on a path of sustainable growth. We need to tackle insecurity so as attract FDI, FPIs and others.
A school of thought believes the Nigerian military and police need major reforms because the existing security structure has shown little progress in the fight against insecurity. So, if reforming our security is the way to go it’s better we embrace it now. For instance, it has been proposed that state police or regional policing is the best approach to fight insecurity. This is also married with local vigilantes and hunters. This is a brilliant idea we need to work on.
Security experts have called for the expansion of the nation’s anti-terror capabilities, as well as improvements in surveillance. This, they believe, would help to identify and block funding channels for terrorists. The call for intelligence gathering, in addition to improving the relationship between the citizens and security agencies, is also critical in resolving the current quagmire.
We should not forget the human angle or what is ordinarily referred to as the human face in tackling insecurity. This includes tackling poverty and unemployment. We must strengthen institutions and invest in infrastructure, with clear priority for the judiciary and rule of law.
Adefolarin A. Olamilekan is a
political economist and host of The Market Report Show ADBN Television Abuja