The CBN report accords with another dire forecast by the Lagos Chamber of Commerce and Industry. The group warns that unless urgent actions are taken, the country’s economy may take a decidedly worse turn. The President, Major General Muhammadu Buhari , must shift from his somnolent mode to a proactive, positive gear.
Empirical findings indicate that high unemployment rate, domestic capital formation, foreign direct investment, government spending on education and security are negatively affected by the growing level of insecurity and consequently, retarded growth in the long and short run. With the government displaying an embarrassing cluelessness in containing insecurity, investors have redirected to countries with lower risk.
The attacks on power, telecoms, petroleum, and gas infrastructure, among others, cause business disruptions. A 2021 report by the Institute of Economics and Peace said as much as 8.0 per cent of Nigeria’s GDP or $132.59 billion is being negatively impacted by the growing violence around the country. Instructively, this has raised military expenditure, internal security expenditure, private security, small arms imports, and other variables that contribute to GDP losses.