Security Challenges and the Implications for Business Activities in Nigeria : A Ctritical Review

Abstract

This paper examines security challenges and the implications for business activities in Nigeria. The paper seeks to determine the implications of security problems on the business operation and investment in Nigeria. The study adopts the Democratic Peace Theory. Secondary data was mostly used in the study. The study identifies the root causes of insecurity in Nigeria which has hindered business activities and some Security challenges confronting Nigeria was also highlighted. Security challenges in any environment constitute threat to lives and properties, hindered business activities, and discourage local and foreign investors, which effect and retards socio-economic development of a country. The study recommends effective formulation and implementation of policies capable of tackling the root causes of insecurity in Nigeria, such as Ethno-religious conflict, weak security system, systemic and political corruption, unemployment, among others.

Effect of Insecurity on Economic Growth in Nigeria

“…A similar study by Olusegun (2016) shows that security and other related variables do not only contribute positively to economic growth in Nigeria. In the same vein, Ifeoma, Ndubuisi-Okolo and Anagbogu (2015) reached the same conclusion emphasizing that security challenges retards the socio-economic development of a country. Shuaibu and Lawong (2016) using a dynamic modelling approach concluded that the impact of insecurity is relatively higher on the external sector and fiscal variables compared with domestic policy variables.…”

Agricultural Value Added, Governance and Insecurity in Nigeria: An Empirical Analysis

“…This is despite Global Peace Ranking that Nigeria is among the most unsecured and complex security environment in West Africa. And insecurity situations alarms raised by Achumbe et al (2013), Okonkwo et al (2015), Adamu and Rasheed (2016), Ajodo-Adebanjoko and Okorie (2014) etc. However, it should be noted that Nigeria with vast land mass and also largely populated.…”

“…In a similar study, Okonkwo et al (2015) argue that insecurity constitute threat to lives and property, hinders business activities and discourages local and foreign investors with consequential negative effects that retards socio-economic development of the country. In a study on security challenges and economy of Nigerian state, Nwagboso (2012) using mostly secondary data argued that failure of successive government to address problems related to poverty, unemployment, inequitable distribution of income among different ethnic nationalities in the country gave birth to the insecurity problems we are experiencing now.…”

“…Achumbe et al (2013) citing Global Peace Ranking identifies Nigeria as among the most unsecured and complex security environment in West Africa. As pointed out in Okonkwo et al (2015) local or foreign business investors are not motivated to invest in an unsafe and insecure environment. Investors look forward to both high returns in investments and a safe environment for their investment.…”

Impact of incessant kidnappings on the external relations: A case study of Nigeria

“…It is noted that the Nigerian incessant security threats are undermining the country's economic prospects. Therefore, there`s a need for partnership in counter-terrorism and insecurity in Nigeria, and it is inevitable because peace and security are vital to the development, and the national structural and transformation agenda of the current Nigerian administration may not be achieved if instability keeps perpetrating in the country (Ifeoma et al, 2015). Furthermore, in the previous years, violence consumed the country's north-western region due to ongoing abductions carried out by faction locally termed "Bandits."…”