With a whopping N2.2 trillion reportedly paid by hapless Nigerians to secure their releases from kidnappers’ dens in the past year, security challenges remain a major threat to Nigeria’s economic growth. Abdulwahab Isa reports
A recent report on crimes and insecurity in Nigeria by the National Bureau of Statistics (NBS) highlights the danger of unresolved security challenges Nigeria is grappling with, and its destructive impact on the economy.
NBS, in the report, underscores the severity of the intricately high crime rate confronting the country. The crime report is one of several reports on Nigeria’s rising security challenges.
Untamed insecurity poses negative impact on the economy in many ways. One of them borders on its dangerous potential of drying up investments and, by extension, voiding employment.
NBS’ 2023 insecurity/crimes data
In a recently released insecurity report, NBS gave fresh insights on the country’s crime rate in 2023. Entitled: “Crime Experience and Security Perception Survey (CESPS),” the bureau dimensioned various crimes plaguing the country. Kidnapping, one of the fast-paced notorious crimes ravaging the entire country, leaves in its trail maximum harm.
According to NBS, kidnapping alone drained victims to the tune of N2.2 trillion. The funds represent payment by kidnapped victims to secure their releases from kidnappers’ dens.
The funds were paid between May 2023 and April 2024. NBS in the report disclosed that the country experienced spikes in insecurity and crime rates in the year under review.
Within the period, an estimated 51,887,032 crime incidences were experienced by households nationwide. Of the number of households that experienced kidnapping incidents, 65.0 per cent paid ransom with an average N2,670,693 ransom paid.
In terms of the geographical spread of reported crimes of the 51,887,032 total number of crime incidents, North West had the highest reported cases of 14,402,254. It was followed by NorthCentral 8,771,400, while South-East with 6,176,031 reported the least.
The report showed that at 26,526,069, the number of crimes in the rural area was higher compared to the urban area of 25,360,963. According to NBS, 4,142,174 households experienced home robbery.
Less than half—36.3 per cent of the households who were victims of home robbery—reported their experience to the police.
It revealed that the most common reasons for not reporting crimes were primarily due to a lack of confidence in law enforcement, and the belief that police intervention would not result in meaningful action.
At the individual level, 21.4 per cent of Nigerians were victims of crime, and the most common crime was phone theft (13.8%).
About 90 per cent of the victims of phone thefts reported to the police, and only 50 per cent of the victim’s expressed satisfaction with police responses.
Nationwide, an estimated 1.4 million experienced sexual offenses, which occurred mostly in someone else’s home (27.7%), followed by the victim’s home (22.2%). Sexual offences are less likely to occur at a public transport station (0.9%), and only 22.7 percent of victims reported to the police.
The report disclosed that public perception on safety showed 9.6 per cent of Nigerians believed they might be a victim of crime in the next 12 months. In the rural area, 13.0 per cent of the population believed they could be victims of crime and 7.0 per cent in urban areas.
In terms of security agencies’ timely response to emergencies, the report put average security agencies response nationally at 33.1 per cent, with an average response time to an emergency call by security agencies in less than 30 minutes.
About 4 out of 10 households had at least one interaction with state or local security forces. within the reference period.
Also, one out of two households had contact with the Nigerian police, and 25.7 percent reported the incidence of crime to the police after experiencing a crime.
Satisfaction with police responses was notably low, particularly for crimes like livestock theft. 42.9 per cent crop theft occurred in the rural areas; many households rely on local vigilante groups.
The Crime Experience and Security Perception Survey (CESPS) provides an in-depth understanding of the situation of crime in Nigeria. A household-based survey, the target population comprises household members 15 years and older.
The survey was carried out to produce estimates at national and zonal levels covering both urban and rural areas for a twelve-month reference period (May 2023 to April 2024).
The findings provide crucial insights for security agencies, stakeholders, and policymakers to improve public safety and align with the Sustainable Development Goals (SDGs).
Industries and businesses dive down
Spike in insecurity in the country Nigeria leaves in its trail a number of negative effects on the economy. Hitherto, Nigeria was a major industrial hub of African nations.
Mega businesses and corporations around the world scrambled for space in Africa’s most populous nation. The scrambling wasn’t for nothing. The stable security environment was an incredible attraction.
Not anymore. A detailed research study by an economist and a former Director of Research and Advocacy at the Lagos Chamber of Commerce and Industry in Nigeria, Vincent Nwani, provides a clearer picture of a number of firms and industries that closed down their operations as a result of insecurity and other bottlenecks associated with business existence. According to Nwani, 10 companies shut down operations in 2020 alone,
A nation attractive to investors, the government has security issues to decisively tackle headlong
and more than 20 companies exited the country. In the research, it showed that in 2020 alone, more than ten companies exited the Nigerian market, as the impact of economic instability and other operational challenges became evident.
Among the notable firms that closed their operations were Standard Biscuits Nigeria Ltd, NASCO Fiber Product Ltd, Union Trading Company Nigeria Plc, and Deli Foods Nigeria Ltd. In 2021, over 20 firms shut down operations in Nigeria.
Among those who left were Tower Aluminum Nigeria Plc, Framan Industries Ltd, Stone Industries Ltd, Mufex Nigeria Company Ltd, and Surest Foam Ltd. The trend continued in 2022 with more than 15 prominent brands ceasing operations in the country.
This included Universal Rubber Company Ltd., Mother’s Pride Ventures Ltd., Errand Products Nigeria Ltd., and Gorgeous Metal Makers Ltd.
The wave of companies’ exits persisted in 2023, as over ten major companies pulled out from Nigeria, citing profitability concerns and challenging business conditions.
Notable departures included Unilever Nigeria PLC, Procter & Gamble Nigeria, and GlaxoSmithKline Consumer Nigeria Ltd. ShopRite Nigeria, Sanofi-Aventis Nigeria Ltd., Equinox Nigeria.
Bolt Food & Jumia Food Nigeria
In 2024, companies (January–October) five companies exited, as the business climate remained difficult. These included Microsoft Nigeria, Total Energies Nigeria (impacted by divestment strategies), and PZ Cussons Nigeria PLC, Kimberly-Clark Nigeria and Diageo PLC.
Rising unemployment rate
One major drawback in the crime spike and insecurity in the country is the rising unemployment rate.
A recently released unemployment data report by the National Bureau of Statistics for the second quarter of 2024 revealed that unemployment scaled up to 4.3 per cent in the second quarter of 2024.
The figure indicates an increase of 0.1 per cent compared to the same period last year. In the period under review, the unemployment rate among persons with upper-secondary education stood at 8.5 percent in Q2’24, while the unemployment rate among youths aged 15-24 and 25-34 years stood at 6.5 per cent.
Unemployment rate among males was 3.4 per cent and 5.1 per cent among females. By place of residence, the unemployment rate was 5.2 per cent in urban areas and 2.8 per cent in rural areas.
The youth unemployment rate was 6.5 per cent in Q2 2024, showing a decrease from 8.4 per cent in Q1’24, while urban unemployment stood at 5.2 per cent in Q2’24, compared with six per cent in Q1’24, while unemployment in the rural areas was 2.8 per cent, down from the 4.3 per cent recorded in Q1’24.
NBS put the share of those in wage employment at 14.4 percent in Q2 2024, a marginal decrease from the 16 per cent recorded in Q1’24.
According to NBS, the rate of informal employment (the share of employed persons working in the informal sector and informal employment, including agriculture) in Q2’24 was 93.0 per cent, a slight increase from the rate reported in Q1’24, 92.7 per cent.
Experts are of the opinion that unresolved insecurity challenges account for loss of foreign direct investment. Both local investors and foreign investors have, at various times, been kidnapped by the marauding kidnap – pers, with a huge ransom for release paid.
The unlucky kidnapped victims died in the process. Nigeria’s deepening poverty level can’t be divorced from increased kidnapping.
Many financially struggling homes have had to squeeze out from their insufficient disposable income to contribute to crowdfunding as ransom for the release of a loved one in the kidnap – pers’ den.
To drain over N2.2 trillion as ransom payment from relatives of kidnapped victims deepens poverty levels among Nigerian citizens.
Combating insecurity
The Federal Government is unrelenting in her effort to curb insecurity, including kidnapping and other dimensional crimes. The efforts can be seen in the number of resources being devoted to addressing insecurity.
In all the previous budgets, including the 2025 budget, security and defense often get the highest allocation. In the 2025 fiscal year, President Bola Tinubu’s administration earmarked N4.91 trillion for defense and security.
At the presentation of the N47.96 trillion 2025 budget last week, Tinubu affirmed that the government would continue to provide security forces with the modern tools and technology they need to “keep us safe; boosting the morale of our men and women in the armed forces will remain our government’s top priority.
The officers, men, and women of our Armed Forces and the Nigerian police force are the shield and protectors of our nation; our administration will continue to empower them to defeat insurgency, banditry, and threats to our sovereignty.”
Last line
For Nigeria to return to her glorious era of prosperity and friendlier environment; a nation attractive to investors, the government has security issues to decisively tackle headlong.
Please follow and like us:
