Year: 2025
Type: article
Abstract: Boko Haram insurgency in the Northeast, armed banditry in the Northwest, separatist agitations in Article published on boldscholar.com. Verify this document by clicking here the Southeast, and farmer-herder conflicts in the Middle Belt have exacerbated economic uncertainty, discouraging foreign investors from committing long-term capital to the country (ACLED, 2023).The activities of insurgent groups such as Boko Haram and the Islamic State in West Africa Province (ISWAP) have led to significant destruction of infrastructure, loss of lives, and displacement of communities, particularly in the northern region.Similarly, the resurgence of militancy in the Niger Delta, coupled with crude oil theft and pipeline vandalism, has deterred investment in the oil and gas sector, Nigeria's primary revenue source (World Bank, 2023).The economic cost of insecurity is substantial.Reports from the Institute for Economics and Peace (IEP) indicate that the effect of terrorism and violent crime on Nigeria's economy is estimated at billions of dollars annually, significantly reducing investor confidence.The Global Terrorism Index (2023) ranks Nigeria as one of the most terrorism-affected countries, further discouraging potential foreign investors.Insecurity leads to increased operational costs for businesses, as firms are forced to invest heavily in security measures, insurance, and risk mitigation strategies.Additionally, the unpredictability of violent attacks and disruptions to supply chains create an unfavorable business climate, making Nigeria a less attractive destination for foreign investors compared to other emerging markets with more stable environments.The relationship between insecurity and foreign direct investment (FDI) is well-documented in economic and development literature.However, insecurity significantly affects a country's ability to attract and retain foreign investment, as investors prioritize stable environments with predictable returns and minimal risks (World Bank, 2023).In the case of Nigeria, the rising levels of insecurity manifesting in terrorism, insurgency, banditry, kidnapping, and cybercrime have created a business Article published on boldscholar.com.
DOI: 10.61955/qaxzuj
Author: OTALU, OTALU,
Institution: Nasarawa State University
Language: English
Subfield: Sociology and Political Science
Field: Social Sciences
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W4416804222
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