Effects of Nigeria security challenges On the economic growth
Effects of Nigeria security challenges On the economic growth.
the growth of Nigerian economy have been serious affected in so many
ways. As a result of the Nigeria security challenges which have lasted
for some years now.The nation’s economy is at the receiving end of the
continued spectre of insecurity in the country, especially in the
Northern part of the country.
The bombings and killings in the northern Nigeria and kidnapping in the south are gradually emerging as a trend that Nigeria’s security agencies seem incapable of dealing with decisively. the hard truth in the story is the silent suspicion that the Nigeria security agencies are actually involved in the business of kidnap for ransom in the South while in the North, the fear is that the Nigeria security agencies may have been compromised and giving vital security information to the violent Boko Haram sect members.
However, the Nigeria security challenges seemed not to have deterred investments inflow into the country. In the first nine months of 2012, data from the Central Bank of Nigeria (CBN) shows that portfolio investment stood at US$4.6 billion while foreign direct investment stood at that portfolio investment stood at US$4.6 billion while foreign direct investment stood at $1.44 billion. Foreign investors also controlled an average of 60 percent of all trading done on the Nigerian Stock Exchange in 2012 despite rising insecurity in the country.The difficult part of it is to evaluate is how much investments would have come into the country without the current nigeria security challenges.
Resolving Nigeria security challenges
the government has concentrated its efforts at resolving the security challenge faced in Northern Nigeria by deploying the military in what has become one of the largest peace time military operations in Nigeria. The deployment has not however, stopped the bombings and in some cases have increased resentment in the local community where these soldiers are located. Nigeria Security agencies however, claim their efforts have reduced the bombings. The bigger question though, is how sustainable is the current drop in bombings without the massive booths on the ground?
It is not just Boko Haram.
While the government is focused on tackling the Boko Haram challenges because it is in the front burner in the media, it is clear that Nigeria security challenges go well beyond Boko Haram. For example, a new group that calls itself Ansar Dine has started claiming responsibility for recent attacks in the North. This may indicate that even if government reaches ceasefire with Boko Haram, there may be an Ansar Dine to deal with thereafter.
Outside the North, there is endemic violence that the security agencies look incapable of dealing with. The crude oil theft and refining in the South is a form of organised criminality, which the government has not shown it is capable of dealing with. The South West seems calm but close observers say that the calmness has come with the political pacification of the Odua People’s Congress (OPC). Remove that pacification, and there may be a new form of violence in the South West. The same form of political pacification seems to have been achieved in the South East with the Bakassi Boys who have also been turned into an unofficial police force by most governors
.
Fuels for insecurity
A high level of unemployment is blamed for Nigeria’s rising insecurity. Though the official unemployment rate is 23.9 percent, some economists say it could be as high as 50 percent of the workforce. The high unemployment rate is fuelling poverty level which is as high as 60 percent in some states in the North, data from the National Bureau of Statistics (NBS) shows.
The second challenge in tackling Nigeria’s insecurity is a weak and poorly trained security agency. Data from BusinessDay Research shows that the Nigerian police spend an average of 94 percent of its budget on paying its personnel. The Army and Navy spend an average of 76 percent of their budgets on personnel cost. This leaves the security agencies with little or no budget to get the sophisticated weapons and training to fight insurgency especially when such insurgency is funded by crude oil theft or foreign interest with deep pockets.
The Nigeria insecurity threat to the economy.
No economy develops in the midst of high insecurity. Nigeria’s case however, looks deceptively different as the economy has sustained a significant 6.1 percent growth in 2012 despite the level of insecurity. This growth is however, deceptive because the opportunity cost of the insecurity is difficult to capture. The opportunity cost of insecurity is the lost growth rate that would have occurred without the rising insecurity in the country.
A breakdown of economic growth rate based on geography may also place into perspective the rising cost of insecurity on the nation’s economy.
it is very obvious that Nigeria security problem has done a lot of harm to the economy of the country. this issue has ended up in scaring away foreign investors in the country. check newsworldng.com for more interesting stories.
The bombings and killings in the northern Nigeria and kidnapping in the south are gradually emerging as a trend that Nigeria’s security agencies seem incapable of dealing with decisively. the hard truth in the story is the silent suspicion that the Nigeria security agencies are actually involved in the business of kidnap for ransom in the South while in the North, the fear is that the Nigeria security agencies may have been compromised and giving vital security information to the violent Boko Haram sect members.
However, the Nigeria security challenges seemed not to have deterred investments inflow into the country. In the first nine months of 2012, data from the Central Bank of Nigeria (CBN) shows that portfolio investment stood at US$4.6 billion while foreign direct investment stood at that portfolio investment stood at US$4.6 billion while foreign direct investment stood at $1.44 billion. Foreign investors also controlled an average of 60 percent of all trading done on the Nigerian Stock Exchange in 2012 despite rising insecurity in the country.The difficult part of it is to evaluate is how much investments would have come into the country without the current nigeria security challenges.
Resolving Nigeria security challenges
the government has concentrated its efforts at resolving the security challenge faced in Northern Nigeria by deploying the military in what has become one of the largest peace time military operations in Nigeria. The deployment has not however, stopped the bombings and in some cases have increased resentment in the local community where these soldiers are located. Nigeria Security agencies however, claim their efforts have reduced the bombings. The bigger question though, is how sustainable is the current drop in bombings without the massive booths on the ground?
It is not just Boko Haram.
While the government is focused on tackling the Boko Haram challenges because it is in the front burner in the media, it is clear that Nigeria security challenges go well beyond Boko Haram. For example, a new group that calls itself Ansar Dine has started claiming responsibility for recent attacks in the North. This may indicate that even if government reaches ceasefire with Boko Haram, there may be an Ansar Dine to deal with thereafter.
Outside the North, there is endemic violence that the security agencies look incapable of dealing with. The crude oil theft and refining in the South is a form of organised criminality, which the government has not shown it is capable of dealing with. The South West seems calm but close observers say that the calmness has come with the political pacification of the Odua People’s Congress (OPC). Remove that pacification, and there may be a new form of violence in the South West. The same form of political pacification seems to have been achieved in the South East with the Bakassi Boys who have also been turned into an unofficial police force by most governors
.
Fuels for insecurity
A high level of unemployment is blamed for Nigeria’s rising insecurity. Though the official unemployment rate is 23.9 percent, some economists say it could be as high as 50 percent of the workforce. The high unemployment rate is fuelling poverty level which is as high as 60 percent in some states in the North, data from the National Bureau of Statistics (NBS) shows.
The second challenge in tackling Nigeria’s insecurity is a weak and poorly trained security agency. Data from BusinessDay Research shows that the Nigerian police spend an average of 94 percent of its budget on paying its personnel. The Army and Navy spend an average of 76 percent of their budgets on personnel cost. This leaves the security agencies with little or no budget to get the sophisticated weapons and training to fight insurgency especially when such insurgency is funded by crude oil theft or foreign interest with deep pockets.
The Nigeria insecurity threat to the economy.
No economy develops in the midst of high insecurity. Nigeria’s case however, looks deceptively different as the economy has sustained a significant 6.1 percent growth in 2012 despite the level of insecurity. This growth is however, deceptive because the opportunity cost of the insecurity is difficult to capture. The opportunity cost of insecurity is the lost growth rate that would have occurred without the rising insecurity in the country.
A breakdown of economic growth rate based on geography may also place into perspective the rising cost of insecurity on the nation’s economy.
it is very obvious that Nigeria security problem has done a lot of harm to the economy of the country. this issue has ended up in scaring away foreign investors in the country. check newsworldng.com for more interesting stories.
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