CHALLENGES OF DOMESTIC INSECURITY ON SOCIO-ECONOMIC DEVELOPMENT OF NIGERIA

(CASE OF KIDNAPPING ACTIVITIES IN OBINGWA L.G.A)

BY

OKOYE EBERE IFEOMA

017/CPA/HND/PAD/0051

BEING A PROJECT SUBMITTED TO THE DEPARTMENT OF PUBLIC ADMINISTRATION

SEPTEMBER, 2015.

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 Abstract
The continuous rise in Insecurity and deterioration in the economic development in Nigeria call for a concern among
researchers and policy makers over the years. However, these two hydra-headed problems still remain the greatest
challenges facing nations all over the world. This study therefore, examines the implication of insecurity on
economic development in Nigeria. With the use of trend analysis, descriptive statistics and Pearson correlation of
failed state index, human development index and Legatum’s prosperity index, the study reveal an inverse
relationship between insecurity and economic development in the country. to ensure economic development in
Nigeria therefore, the study recommends various measures of curbing insecurity including preventive community
policing, human development centered growth perspective, equitable distribution of resources as well as channeling
of resources to frontline sectors of the economy among others.

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 TABLE OF CONTENT
CHAPTER ONE ………………………………………………………………………..1
1.1Background to the study……………………………………………………………..1
1.2. Statement of the problem……..……………………………………….……………2
1.3. Objectives of the study……………………….………………………….………….3
1.4. Research questions………………..…………………………………………………….3
1.5. Statement of hypothesis………………..……………………………………………3
1.6. Significance of the study……….……………………….….…………………..………3
1.7. Scope and limitation of the study.……………….……………………….……………3
1.8.Definition of terms………………………….………………………………………….………………..4
Chapter two….……………………………………………………………………………………...6
2.0 Review of Related Literatures……………………………………………………………………………………..6
2.1 Conceptual
Framework………………………………………………………………………………………………6
2.2 Theoretical Frame
……………………………………………………………………………………………………12
2.3 Empirical
Review………………………………………………………………………………………………………13
Reference

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 CHAPTER ONE
1.0 INTRODUCTION

1.1 Background of the Study

Since the past decade or more Nigeria has witness an unprecedented security challenges occasioned by the activities
of militants on the South-South region of the country, kidnapping in the South Eastern part, violence armed robbery
in almost parts of the country, political assassination, ritual killings and more recently activities of Boko Haram in
some parts of the Northern region especially North east. These social menaces, when put together impinge on the
security of lives and property of both Nigerian citizens and foreigners living or even trying to invest in the country.

These fates are due to abysmal failure of successive administration in Nigeria to address challenges of poverty,
unemployment and inequitable distribution of wealth among ethnic nationalities, ultimately resulted to anger,
agitation and violence crimes against the Nigerian state by some individual and groups. Through their activities, the
government recorded low income from oil revenue, moderating the gross domestic product growth rate, low
participation of local and foreign investors in economic development and general insecurity of lives ad properties of
the citizens.
Most recently, 2009 to date the country frequent occurrence of bomb explosions orchestrated by the acclaimed
religions extremists in the northern part of country leading to death of thousands of innocent Nigerians and
foreigners all together. According to security information released by crime Guard, a security monitoring group
between March and December, 2012 there were total of 153 successfully explosion in the country and thousands of
lives and properties worth millions a general note however, the inability of the security agencies. The National
Security Agency (NSA), National Intelligence Agency (NIA), The State Security Services, (SSS) The Nigeria Police
Force (NPF), Nigeria Immigration Service (NIS), Nigeria Customs Service (NCS), The National Drugs Law
Enforcement Agency (NDLEA), The Nigeria Security and Civil Defence Corpse (NSCDC) and alternatively the
Nigerian military to address the country’s security challenges during these inauspicious period raised yet another
critical question on the preparedness of Nigeria to attain the desired political, social and economic heights in the year
2020. It also poses serious threats to the unity and corporate existence of Nigeria as a sovereign state.
The mass movement of entrepreneurs from trouble areas to relative safer regions and total closure of businesses and
companies by investors in security challenged regions to another are patterns of economic behavior. The bombing in
markets, shops, motor parks, places of worship has kept people in perpetual fear and uncertainty of their lives and
investment.
This research intends to find out the effects of this pathetic security situation on the economy o Nigeria and also to
unearth causes of these threats to our corporate existence as a nation and critically evaluate the performance of
security agencies in handling these situations when these are done, we can appreciate better the roles government is
doing in trying to hip the problems of insecurity to the board and also provide relevant suggestions recommendations
that would go a long way in addressing some of the root causes of insecurity in Nigeria.
1.2 Statement of the Problem:
The security situation in the country between 1999 to date has taken a sophisticated dimension with violent crimes
spreading every region of the country, with activities of movement for the emancipation of Niger Delta (MEND)
crippled the economic activities of such period thereby leading to declining oil revenue and kidnapping, ritual
killings, ethnic conflicts and recently insurgency/ terrorism holding the economy of the northern region to a halt as
investors are running away from the once prosperous and business conducive north to other part of the country and
even away from Nigeria to other peaceful African countries.

The question is, what are the impact of these security challenges or insecurity of Nigeria’s economy? What are the
causes of these security challenges? What are the government’s efforts to curb insecurity to bring back the Nigeria’s

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 economy back on track, finally can Nigeria achieve the vision 2020 with lingering security concerns its currently
facing? These are questions that this work seeks to study.

1.3 Objectives of the study:

The essence of this study amongst other things is to discover the effect of insecurity on National economic
development in Nigeria.
i. The study intends to also find out the causes of insecurity in Nigeria, find out the relationship between security and
economic development in Nigeria.
ii. To find the roles of government and the citizens in the face of insecurity.
iii. Finally, effort would be made to proffer solutions, to insecurity in Nigeria which would enhance National economic
development in Nigeria
.
1.4 Research Question:
This research would be guided by the following research question questions which demands an answer at the end of
the work.
i. What are the effects of insecurity on national economic development in Nigeria?
ii. What are the causes of insecurity in Nigeria?
iii. Is there any relationship between security and economic development in Nigeria?
iv. Finally, what are the roles of government and citizens in tackling insecurity in Nigeria to better its economy?

1.5 Statement of Hypothesis:

This work will be guided by null hypothesis and an alternative hypothesis.
HO: Insecurity has negative effects on the economic development in Nigeria.
Hi: Insecurity has no negative effect on national economic development in Nigeria.

1.6 Significance of the Study:

At the end of this study, this work is going to:
I. Serve as handy material for security agencies on ways to handle insecurity.
II. It will shade more light on the causes of insecurity to the government and other stakeholders.
III. it will enhance understanding on why Nigeria’s economy is the way it is today.
IV. Finally, the work would serve as reference material to students writing projects and thesis on Nigeria’s security
situation and economic development.

1.7 Scope and Limitation of the Study:

Due to the vastness of the country and antecedence of insecurity in the county, particular, attention would be paid to
security challenges from 1999 to date spreading across the geo-political region with particular focus on Kidnapping,
Boko Haram mainly in the north east and part of the north central and north west, militancy/ oil bunker in the south
South region, Armed robbery and ritual killing in the south east and south west, religious crisis in the north central
region.

Also, the economic indices that would be of focus are; level of poverty, per- capital income, infrastructural
development, employment, gross domestic product, revenue generation, investment and savings. Not all indices of
economic development and insecurity would be explained in details because of constraint of time and resources.
1.8.Definition of terms
For the purpose of this work, the following terms are refers to as:

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Security: a condition or feeling of safety from harm or danger, the defense, protection and the absence of threat to
acquire values.

Effect: The result or outcome of a cause. In this case insecurity

National security: This relates to the presence of peace, safety, happiness and the protection of human and physical
resources or the absence of crisis, threat to human

Insecurity: The presence of crisis, violence or threat to human life and properties.

Economic Development: The structural transformation of an economy into a higher level of industrialization, high
standard of living, high per- capital income per head, low level of poverty and unemployment.

Nigeria: A sovereign political entity with defined land mass, people and government.

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 CHAPTER TWO
2.0 REVIEW OF RELATED LITERATURE
2.1 CONCEPTUAL FRAME WORK.
Since the end of cold war, security and economic development have increasingly interlinked (Chander,
2007:362) in fact no sustainable development can be achieved in the atmosphere of conflicts, crisis and war and
Nigeria is not an exception. Understandably, security and development are two different concepts but tend to affect
each other, making both concept inseparable.
2.1.1 Security:
David (2006) defines security as the condition or feeling of safety from harm or danger, the defence,
protection and the absence of threats to acquire values. (cited in Igbuzor, 2011:2).
According to United Nations Development Programme (UNPDP, 1994) human security may be defined to
include such chronic threats as hunger, disease and repression. Security means protection from hidden and hurtful
disruption in the pattern of daily life in homes, offices or communities. They also define security as a state of being
safe and secure from danger.
National security is essentially related to the presence of peace, safety, happiness and the protection of human
and physical resources or absence of crisis, threats to human injury among others. (Otto and Ukpere 2012). The
presence of peace could facilitate progress. Security is not measurable variable in quantitative terms but spending on
security can be used as proxy to quantity the volume of security especially if the spending is effective. (Krahmann,
2003).
The 2012 report of Central Bank of Nigeria indicates that in 2008, to 2014 fiscal years the total expenditure
earmarked for both internal security and defence in approved budget were N164.5 billion, N 276.5 billion, N 422.9
billion and N 562.2 billion respectively (CBN. 2012) this is due to the deplorable security situation in the
country and the need to secure the country for collapse
Kidnapping Precipitated by Unemployment
Kidnapping was defined by Onifade, Imhonopi and Urim (2013), as the act of abducting somebody and keeping
him/her as prisoner in order to get a ransom for his/her release. This dangerous trend which was seen as a spill-over
of the Niger Delta crises which got rooted in the South-East states of Nigeria because of its economic attraction to
the many unemployed youths within the region. The hold of the black economy was more in Abia and Imo states
where prominent people of the area were the target of the perpetrators of the heinous crime. The reserved army of
unemployed youth, which were used as political thugs in the 2007 general election, had readily available the tools for
the black business. These thugs diverted the guns given to them by politician and the skills they acquired in political
thuggery into the business of kidnapping after the election. These thugs were abandoned after the election without
adequate compensation, and to make the matter worse, the guns given to them for the purpose of the election were
never retrieved from them. As Nwagboso (2012) noted, confessions of apprehended kidnappers indicated that some
politicians in the South-East states supplied guns to some youth for the purpose of rigging the 2007 general elections.
Unfortunately, these guns were not retrieved at the end of the elections. Consequently, kidnapping transmuted into a
profitable business mostly among the youths in Abia, Imo, Ebonyi, and other states in the zone. Prominent indigenes
and business men in these areas were the target of the kidnappers. Attempt was once made at kidnapping the
Governor of Abia State, Chief Theodore Orji in 2008, but this was foiled by security agencies. With an attempt at
kidnapping the Governor, other indigenes and business men has no option than to be jittery, which led them into
relocating most of their businesses out of the state to neighboring states like Enugu and Anambra (Onifade, Imhonopi
and Urim 2013). Other targets of this black business were; traditional rulers, school children and Christians leaders.
This case of kidnapping school children was so touching that commercial Banks in the areas closed down for several
days to protest the ugly trend as observed by Nwagboso (2012). The government has made several attempts at
stopping the crime in the area and this can be seen in the deployment of soldiers on the invitations of the various state
governors. As Sampson (2010) observed, through direct intensive attacks by the military on the various hideout used
7
 by the kidnappers, the menace of the crime has reduced in the South-East states. As the government seems to be
achieving successes in some states, the criminals keep relocating to other states to continue with their black business.
The second and third quarter of 2013 in Edo State witnessed upsurge in this criminal activities of kidnapping with
people assuming Edo State to be the new headquarter of the black economy.
2.1.2. Objectives of Nigeria’s National Security
The central pillar of Nigeria national security policy is the preservation of the safety of Nigerians at home
and abroad and promotion of the sovereignty of the country as well as her integrity and assets (Nwagboso, 2012).
In Nigeria the implementation of the national security policy is largely the responsibility of the President,
National Security Adviser (NSA). Chief of Defence Staff (CDS), Chief of Army Staff (COAS), Chief of Naval
Staff (CNS) and Chief of Air Staff (CAS).
The Internal security management in Nigeria is the role of the Nigeria police force, Nigerian Prisons Services,
Nigerian Immigration services, Nigeria Security and Civil Defence Corps, the Nigerian Customs Service and the
National Drugs Law Enforcement Agency. Unfortunately the management of Nigeria’s internal security is seen as
an exercise in futility in spite of the establishment of numerous security apparatus as well as huge budgetary
allocation to them (Usman, 2010).
2.1.3. INSECURITY; is a state of being subjected to danger or vulnerability. It can best be described as the absence
of security within a geographical area.
2.1.4. Causes of Insecurity in Nigeria
The following are identified as causes of insecurity in Nigeria
1. Ethnicity and religion: according to Abaeph (2011) these situation bridges ill will and sense of marginalization in the
scheme of affairs of Nigeria hence the people tend to sabotage government developmental efforts.
2. The justice system encourages insecurity as offenders of grievous offences are given light sentences (Punchy 21/11/11,
cited in Otto and ukpere 2012).
3. Poverty the 2012 CBN reports poverty level in Nigeria 70% which predisposes the poor to violence against the rich.
4. Proliferation of small arms (Ekpimah (2011) reports that arms could be accessed as low as 1000 naira, so even the
poor could access arms and use such arms to cause havoc. Import of weapons by developing countries has risen
dramatically according to Todaro and Smith (2003) (Cited in Otto and Ukpere P.6769.)
5. Unemployment has also contributed in the rising cases of violent conflict in Nigeria. Salawu(2010) argued that
unemployment increase the number of people who are prepared to kill or be killed for a given course at token
benefit.
6. Political causes of insecurity such as electoral violence, political assassination this is due to poor governance and
leadership failure in the country.

TABLE 1. FORMS OF SECURITY THREATS TO NIGERIA

FROM 2007- DATE AND ZONE THEY EMANATED

S/N Security Threats Year Political Zone

1 Militancy Niger Delta 1999-2007 South- South
2 Ethno/Religious Crisis 1999-Date North- Central
3 Kidnapping, Ritual Killing And 2007- Date South East and South West
Armed Robbery.
4. Boko Haram/Insurgency 2009-Date North East, N/Central & North West
Source: Nwagboso’s Field Survey 2015.

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 2.2.1. THE CONCEPT OF ECONOMIC DEVELOPMENT:
The concept of economic development has continued to excite modern economic theorists and policy
markers with enormous difficulties in arriving at a consensus as to what the concept truly means. This difficulty in
conceptualizing development in concrete terms led Meier, (1984) to opined that, it is easier to say what development
is not (than to say what it is); while many scholars believe that any attempt to give development universal acceptable
definition will amount to “scholastic pedantry”(Ogbonna, 2012 .203).
Economic development is a structural transformation of an economy into a high level of industrialization,
high standard of living, high per-capital income per head, low level of poverty and unemployment among others
indicators of development.
Tunde and Lemo (2012) argued that Development has many dimensions as indicated above; it is connected
to improvement in human capacity, living standards and over all societal well-being. For a nation to attain
development, its social, economic and political institution must be in tandem with millennium Development Goals
(MDGS) (Ogbonna 2012).
Within this frame work, Nigeria is rated one of the less developing countries with slow progress in
education, gender equality income inequality, employment generation, wealth creation and poverty (Ogbonna 2012 )
According to Ogbonna (2004) Economic development deals with the economic, social and political
institutional mechanism in public and private sector designed and necessary for bringing out rapid and large scale
improvement in the life , and of the living standard of the masses of poverty stricken, malnourished and illiterate
people of less developed countries of the world. He added that, Economic development deals with the roles of certain
economic variables like, production, savings, and investment etc. And large scale savings, production and investment
can be achieved if and only when the following ingredients of development are properly exploited;
1. Quality and quantity of its natural resources
2. Quantity and quality of human resources
3. The stock of capital goods
4. Technology.
2.2.2. OBJECTIVES OF ECONOMIC DEVELOPMENT:
The objectives of economic development are diverse but the core ones include:
1. Understanding the problems facing countries and ways of solving them
2. To understand strategies adopted by other countries on their development process
3. To understand the degree of poverty and its implications within nations
4. To understand why certain countries are poor, why others are rich and reason for such inequality
5. To draw a comparative analysis between countries in the world and learn from the experiences of the more developed
countries.
Ogbonna (2004) identified three core values of development that would
accelerates the pace of achieving the above objectives to include;
1. Substance
2. Self esteem
3. Freedoms from servitude .
2.2.3 OBSTACLES TO ECONOMIC DEVELOPMENT IN NIGERIA.
Nigeria is blessed with both human and materials resources to drive it to development, the question remain, why
is Nigeria’s economy not developed despite the huge investments and structural development plans the nation had?
(1) Illiteracy and lack of relevant knowledge and skills
(2) Fragmented economy arising from religious and cultural differences and barriers to mobility of labour
(3) Defected market mechanism which does not allow forces of demand and supply to dictate the pace for economic
activities
(4) Weak agricultural base, characterized by neglect, primary and crude method of farming and illiteracy among the
farmers.
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 (5) Climate condition
(6) Political fragility
(7) Lack of technological innovation, managers and population pressures
(8) Security challenges
(10) Lack of political will and
(11) Corruption in both public and private sector (Ogbonna, 2012)

2.3. THEORITICAL FRAMEWORK

For the purpose of this study, Dependency and Relational/Vengeance theories would be used to provide explanation
for violent conflict between groups by exploring sociological, political, economic, religious and historical
relationship between such groups.

2.3.1. Dependency Theory

The foundation of the theory of dependency emerged in the 1950’s from the research of the Economic
Commission for Latin America and the Caribbean. One of its most representative author was Raul Prebisch. The
principal points of Prebisch model which is related to this study are his conditions for economic development which
are:
A. By controlling the monetary exchange rate, placing more government emphasis on fiscal rather than monetary
policy.
B. By promoting a more effective government role in term of national development plans.
C. By creating a platform of Investments, given a preferential role to national capitalist
D. By allowing entrance of external capital following priorities already established in national plans.
E. By promoting a more effective internal demand in terms of domestic markets as a base to reinforcing the
industrialization process.
F. By generating a larger internal demand by increasing the wages and salaries of workers, this will in turn positively
increase aggregate demand in internal markets.
G. By developing a more effective coverage of social services from the
H. government especially to impoverished sectors in order to create condition for those sectors to becomes more
competitive.
I. By developing National strategies according to the Model of Import substitution, protecting national production by
establishing Quotas and tariff on external market (Boden, 1970).
The Nigeria economic development planers drew some of the ideas of dependency theorist especially Prebisch’s
model in constructing Nigeria’s economic policies. Using his economic development conditions mentioned above.
For example the Udoji commission of 1970, adopted some of the above mentioned conditions to fashion out their
plans with much emphasis placed on personnel welfare and strict monetary policies to curb unemployment,
inflation, dumping in the economy and inequality by equitably distributing income, creating fertile ground for
investment and savings thereby reducing dumping by establishing import substitution industries and diversifying the
economy.

2.3.2. RELATIONAL/VENGENCE THEORY

The belief is that cultural and value differences as well as group interests all influence relationship between
individuals and groups in different ways. Thus, a number of conflicts grow out of a past history of conflict between
groups that led to the development of negative stereotypes, racial intolerance and discrimination (Faleti, 2006:54-55).

The differences in these values creates the “WE” and “OTHERS” dichotomy. “The fact that “others” are
perceived as different makes us feel they are entitled to less or are inferior by reason of their opinion or values. This

10
disrupts the flow of communication between us and them and to the extend, we twists perceptions that we have about
each other.
For example Okereke (2014) notes that sect members attracted several descriptions where they operated
based on the perception of the local population. In some community where they existed, the sect and it members
were described as terrorist, Militants, Mafias, Hard guys, and even as persons with psychiatric challenges.
The state and other members of Nigeria society who are targets of Boko Haram’s violence may indeed find it
difficult to understand the sect’s thirst for blood.
On the other hand, the former group (State) becomes in this conflict the “WE” and all efforts are being to
secure it from savagery of the “OTHERS” the Boko Haram members. On the other hand again, the latter group
(Boko Haram members) are bond either by common purpose of fighting the “unbeliever” for Allah or feeling of
deprivation or both, thereby seeing the remaining members of the Nigerian society as the “Others”. In the
circumstance, mutual antagonism exists and can be violently express by killing the members of the opposite group.
The Religious conflict in Nigeria carries this form too. The two dominant Religion Christianity and Islam.
Members of these faiths have the believe of ‘We’ against “Others”. They pool forces and resources to project interest
or defend their interest. For the members of the same faith, the form the ‘WE’ factor while the other is seen as
“Others” (Alezeieuwa, 2014)
Niger Delta crisis too took this form too. The Nigerian society/government was seen by the militants as the
‘Others’ while anyone showing sympathy to their struggle for resource control and fight against marginalization is
seen as a friend of the Niger Deltans are seen as the “WE” . Many other groups that ever emerged like the OPC,
MOSSOB, and the like all had this coloration.
For the purpose of this study, national security as a tool for economic development in Nigeria, It could be
deduced that the security of Nigeria is usually challenged by individuals who feel they are marginalized, and form
the “We” factor against the Nigeria’s state who is suppose to be for all and their target is usually on government
Institutions and properties. For example, the Boko Haram started with the sect members killing and destroying
government Institutions like the Police personnel, Police Stations and Barrack, government building like police Force
Head Quarters in Abuja and United Nations building also in Abuja. Now they have extended their violence on
Innocent Nigerians in market places, churches, mosques, motor parks and even hospitals, thereby hampering smooth
economies, activities in the affected region of the country.
The militancy in the Niger Delta too, the attack was targeted on government Institutions and properties such
as petroleum pipelines, Refineries and Nigerian Forces, the Police and the Military. They see themselves as “We”
while the whole country as “Other” or “They”. Employing their whole arsenal and weaponry on the state thereby
crippling the economy of the country as so many foreign Nationals were kidnapped, killed and total oil production
fell drastically because of their activities at the region.
The attacks and counter attacks and subsequent vengeance and revenge are causes of Insecurity in Nigeria
with it negative consequences be fell by all as it affects economic, political, social, religious and cultural activities in
the country as a whole. (Eme, 2011).
2.4. EMPIRICAL REVIEW
(Ezeobi, (2009) Opined that, the growing crisis of National security in Nigeria has adversely affected the
country’s economy negatively. Before Amnesty programme designed for repentant militants in Niger Delta region
the oil production and the number of barrels produced per day declined drastically. This was largely due to
kidnapping and hostage taking of oil worker’s in the region. These problems adversely reduced government revenue
evidence in abandoning of most capital projects captured in the 2007-2008 annual budgets due to shortage of
financial resources occasioned by militancy in the Niger Delta region.
Nwagboso (2012) said, the spate of kidnapping in some part of Nigeria ultimately resulted in serious
economic problems. The continuous kidnap cases in commercial cities of Port Harcourt, Aba, and Onitsha obviously
forced Investors, Businessmen and manufacturing companies to peaceful cities in Nigeria or other countries within

11
West African sub-region. In Aba for instance, the NBL, SEVEN UP Plc, UNILEVER Plc, P2 Plc relocated to Enugu
largely due to constant kidnapping of their expatriates.
Although the security challenges seemed to have completely deterred Investments Inflow into the country, it
has indisputably becomes the gravest bane to national development in Nigeria. According to Agomuo (2013) In the
First Nine months of 2012, data from central Bank of Nigeria CBN shows that portfolio Investment stood at $4.6
billion while foreign direct Investment stood at $1.44 billion against $4.2 billion direct foreign Investment in 2010.
The ever increasing cases of kidnapping in the country has therefore affected Nigeria’s quest to sustain the growth of
the National economy through the attraction of foreign direct Investors.
Ononogbu (2012) tries to give typical behaviors of a nation that thrives on a rent economy; the government
has always sought to buy peace and always ended with the peace of the graveyard like the current situation in Niger
Delta region. The Ineffectively Implemented and corruption ridden Amnesty programme has transformed the
erstwhile militants into either top level government contractors or emergency crude oil refiners in the crecks or
kidnap merchants.
Besides the Incidences of kidnapping and militancy in the Niger Delta region, the lingering Boko Haram
Insurgence which stated in 2009. In Maiduguri, Borno state and spread across the whole region has brought the
economy of the northern region to a Stand Still. The Insurgence has weakened the north’s once prosperous textile
Industry thereby leaving thousands of people unemployed. Similarly, major consumer good’s companies have seen
their distribution chains destabilized as the distributors of their goods in the northern parts of the country have been
forced to relocate to the south. The telecommunication companies have seen their Facilities destroyed while bank
branches have been attacked and robbed. Under the prevailing security situation, the first group of individuals to flee
the country are Investors or potential Investors, those whose capital would have made the GDP grow possible at all. (
Nwangwu. 2012).
Sobowale (2012) the agricultural sector of the economy which has provided jobs for most people and
contributes almost 40% of our GDP has been devastated by the Boko Haram Insurgence in the northern region. The
24 hours curfew Imposed on Kaduna, Yobe, Borno and Adamawa States in 2012 following the escalation of the
Insurgence provide vivid example of what is in store for Nigeria Agriculture. Kaduna, Kano, Yobe perform the same
role for transport of Agricultural produce from the North. Even without the curfew, there has been a sharp drop in the
flow of Agricultural output.
The prevailing state of Insecurity has lowered agricultural output as farmers’ flee to safer territories, those
who still remained brave and go to the farm (mainly because they have no other means of livelihood and no place to
go), might find it difficult to evacuate their farm produce as transporters are scared and reluctant to go to the
Northern region. (Sobowale 2012).
Oladoymbo( 2010) exclaimed that” the Aba crisis has claimed numerous lives of Nigerians and properties
worth millions of Naira. However, the Aba crisis resulted to several killing of Christian by Muslim. Indeed, from
2007-20011 over 10,000 Christians were slaughtered during the Aba crisis “ this act has gave the state which was a
tourism haven in Nigeria a bad image, as the state is now identified with terror and Insecurity thereby hampering
economic activities on the Abia.
Bello, (2004), Williams (2008), lake (2001) have pervasively argued that insecurity in a given state does not
only affect the growth and survived of democracy but also lead to high level of poverty, unemployment, high rate of
crime, poor standard of education, high rate of illiteracy, poor infrastructural development, poor state of health
facilitates among others. Effective public enlightenment and campaign for peace remains the instrument and tool to
tackle the internal security issues and problems in the contemporary Nigerian State.
Adequate security guarantees rapid political and economies development of the country as citizens are free to
invest their resources into gainful businesses there by creating wealth, employment and re-distribution of income
(GDP) creates a sense of belonging into the system, encourages ingenuity and enterprenual spirit among others.

12
 CHAPTER THREE

3.0 RESEARCH DESIGN AND METHODOLOGY

3:1 Research Design

The design of the study is analytical analysis and it employed the use of trend analysis, descriptive statistics and
Pearson correlation. These tools are appropriately employed for the examination of the implication of insecurity on
economic development in Nigeria. The variables used as measure of economic development are human development
index and the prosperity index sourced from United Nations (2016) and Legatum (2016) respectively. These two
measures are the most acceptable universal measures of economic development used by numerous researchers.
Similarly, the failed state index composed by Global Fund for Peace is used as an indicator of insecurity. The index
has twelve (12) components capturing different aspect of insecurity. The trend analysis of the components is
provided in the next section of this study.

3.2 Area of Study

The study is being conducted in Aba Abia. Aba is a city in the South East of Nigeria, the city has a population of
about 900,00 residents base on the 2006 National Population Census (NPC, 2006). The city is popularly called “J –
Town” it is the administrative capital of Abia State.

3.3 Population and Sampling Procedure

According to the 2006 National Population Census, Aba city has a total population of over 900,000 people (NPC,
2006) predominantly civil servants business men/women, private sector workers and traders and students

To determine the sample size for this study the Taro Tamane’s formal was adopted. According to Taro Yamane
(1964:240) sample size is given by

n = N
1+N(e)2

Where n = Sample size

N = Population size and
e = The level of significance

with 0.05 as the level of significance, the research therefore determined the sample size of 900,000 thus.

N = ?
n = 900,000
e = 0.05
n = 900,000
1+900,000 (0.05)2

= 900,000
1+90000 × 0.0025
13
 = 900,000
1+2250

= 900,000
2251
= 399.8

= 400

The researcher adopted stratified sampling procedure in which selected numbers from each stratum according to
certain proportion. This implies that the researcher used proportional random sampling procedure to determine the
proportion of the sample size according to each stratum. The stratum is made up of the following: civil servants,
Business men and women, private sector workers traders, and students distributed thus as civil servants = 36%,
Business men and women 28%, private sector workers 20% students 16%. Hence.

Civil servants: 36% of 400 = 36 × 400 = 144

100 1

= Business men/Business women: 28% of 400 = 28 × 400 = 112

100 1

= Private sector workers 20% of 400 = 20 × 400 = 80

100 1

= Students 16% of 400 = 16 × 400 = 64

100 1

Total 400

Therefore the researcher selected 144 civil servants, 112 business men and women, 80 private sector workers, and 64
students to make up the required sample size of 400 people.

3.4 Sources of Data

The researcher collected this data from both primary and secondary sources. The primary sources are the first hand
information collected by the researcher from the respondents. These comprises of data generated through the
questionnaires, personal observation. The secondary sources used by the researcher include; textbook, journals,
internet materials and other related literature.
3.5 Instruments of Data collection
To ease data collection, presentation and interpretation, the researcher deliberately provided option in the
questionnaires, from which respondents could make the choice of their answers to the question asked. He distributed
copies of the questionnaires to the respondents, some of whom he also interviewed in a relaxed mood. He distributed
the questionnaires by hand to ensure that they reached the targeted respondents and he retrieved them after two
weeks.

14
The researcher chose to use questionnaire because it is more practical and easy to understand and can be analysed
more scientifically and objectively than other forms of techniques. Also the results of questionnaires can be
quantified easily and can be used to create new theories and or to test existing hypotheses.
3.6 validation and Reliability of Instrument.
Validation of Instrument:
Having constructed the instrument to be researcher had to be sure that it measured the rational categories or variables
for the intended purpose. To establish the validity of the instrument; he therefore employed a “pilot test techniques”
that is, a trial study. To avoid bias, he randomly distributed the questionnaires to a disinterested group of people who
are capable of assessing the instrument in relation to the research questions. The researchers allow the disinterested
group free hand to criticize, reject, substitute or in most cases introduce any idea that would ensure clarity of the
items in the instrument. The pilot study respondents were thirty (30). They were given the actual questionnaires
meant for the study. The researcher examined the sample of the questionnaires as scored by the pilot group and found
out that 85% result was achieved, which meant that almost all the respondents took a positive or negative stand. The
researcher, therefore subjectively affirm that the instruments is valid. This means that the instrument measures what
it was meant to measure.

3.7 Techniques of Data analysis

The reliability of the instrument was established using “ test-Retest process” the researcher administered the
constructed questionnaire to a sample of 10 people different from the pilot sample group. After one week, he
distributed second batch of the same instrument to the same reliable sample group. Before distributing the second
batch, he also numbered them one to ten (1-10) as was done in the first batch, the number in each instrument, at the
second stage, given to each respondent in the reliable sample group corresponded to the number of the instrument
given to him/her at the first distribution. When the result of the second scoring was collected, the researcher
compared it with the first result of each element of the reliable sample group with the second result. This comparism
was repeated all through the ten paired instruments. It was discovered that all of them neared consistent. The
researcher therefore established the reliability of the instrument.
Variable Specification/ Model Specification:
Variable Specification:
The variable in this study national insecurity and economic development. While national insecurity is the
independent variable represent with letter x and while economic development is the dependent variable represent
with the letter Y.
This means, the level of national security or insecurity may and may not affect economic development in Nigeria.
As earlier noted, national security is essentially related to the presence of peace, safety, happiness and the protection
of human and physical resources or absence of crisis, threat to human existence, while insecurity is the reversed side
of the national security. Economic development on the other side is the structural transformation of an economy into
high level of industrialization, high standard of living, high per-capital income, low poverty & unemployment.
Model Specification
The model to be adopted in this study is simple regression analysis, given by y=a+bx
Where y = dependent variable (s)
X = independent variable
A = constant, indicating the point
Interception of x and y axis.
B = parameter 9 the slope or gradient) that defines the specific relationship between x and y.
A =(𝜀y) (𝜀x2)-( 𝜀x) (𝜀xy), b = n (𝜀xy)-( 𝜀x) ( 𝜀y)
n (𝜀x2) –( 𝜀x)2 n (𝜀x2)- ( 𝜀x)2
The special package for social sciences (Spss) will be used to run the regression analysis, since the package
simplifies the procedure. The required components for running regression analysis are:
15
 1. Level of significance
2. The number of observation in the sample (n)
3. Degree of freedom (n-k)
In this study, therefore, the components are:
a. Level of significance …………… 5%
b. Number of observation (n) ……...
c. Number of parameter coefficient (k) ……….1
d. Degree of freedom …………………………...4
3.6 Data Analysis Techniques
The data collected from the field will be presented on the table for analysis descriptive statistics will be used to
analyse the data.
The formula for the sample percentage to be adopted is given as.
X = 100 F (i.e x% of n = f.
n
where x = percentage, n sample size and f = frequency of responses.
However, in testing the hypothesis, the researcher will use the simple regression analysis as his tool to determine the
discrepancies between the computed values Tc and the tabulated value (critical value) tx/2. The formula to be
adopted is given as.
A = =(𝜀y) (𝜀x2)-( 𝜀x) (xy), b = n (𝜀xy)-( 𝜀x) ( 𝜀y)
n (𝜀x2) –( 𝜀x)2 n (𝜀x2) –( 𝜀x)2
The special package for social sciences (Spss) as already stated will be used to run the regression analysis.

3.8 Decision Rule

The Null hypothesis will be rejected in favour of the alternative hypothesis if the computed value Tc is larger than
the critical value (T∝/2) obtained from t table.

16
 CHAPTER FOUR
4.0 DATA PRESENTATION ANALYSIS AND INTERPRETATION
Trend analysis on the Implications of Insecurity to Economic Development

One of the greatest challenges facing government all over the world is insecurity. According to the social contract
theory of state, there is a social contract between the state and the individual making up the state. Individuals
surrender their rights to the state and the state guarantees their protection and security. This makes the protection of
life and property paramount to the state. Also, given that production and economic improvement can only take place
within an atmosphere of harmony and tranquillity. Therefore, insecurity must be curbed by all available means.

Nigeria as a country has had its share of the prevalence of cases of insecurity. The causes of insecurity vary from
country to country and are of different dimensions and perspectives, for example, religious, political, economic,
social et cetera. In Nigeria, cases of breach of security have become a daily occurrence even with the democratization
of the country’s political process and institutions. In Nigeria, violence and crisis have erupted as a protest of
government neglect in the Niger Delta region, religious bigotry in the north, ethnic and tribal sentiments among
others.

The overall level of insecurity is capture by the Global Fund for Peace’s Failed State Index which provides insight
into various components of state insecurity. The failed state index has some indicators as presented in the table 1
below. It is important to note that the smaller the index or score for each indicator, the better the state of affairs of the
country. In the year 2005, the score for demographic pressure, one of the indicators of the failed state index which
measure the pressures on the population such as disease and natural disasters make it difficult for the government to
protect its citizens or demonstrate a lack of capacity or will was 3 but by 2009 it has risen to 8.5 before declining
slightly to 8.3 in 2011 and finally risen to 9.1 in 2016. This increase in the score of demographic pressure may not be
unconnected with the unabated growth in the nation’s population (see Ode, 2006).

Refugees and internally displaced person which captures Pressures associated with population displacement
which strains public services and has the potential to pose a security threat was 6.5 in 2005, reduced to 5.3 in 2009
and by 2011, it has increased to 6.0 before finally increasing to 7.7 in 2016. The sudden surge in the number of
person internally displaced within the country is not unconnected with the prevalence of violence in the Northern
part of the country and insurgency which led to migration of people to relatively peaceful parts of the country.

Group grievances which is the measure of the possibility of the existence of tension and violence between
groups, the state’s ability to provide security is undermined and fear and further violence that may ensue. In 2006,
the score for group grievance was as high as 9.1 out of a total 10 and by 2009, it increased to 9.7 and by 2011, it
decreased slightly to 9.6 and by 2015, the score for group grievance stood at 9.9 before slightly decreasing to 9.4 out
of a total score of 10 in 2016. This shows that the nation has different groups who are not satisfied with the current
composition of the state, allocation of resources and leadership in government. This questions the legitimacy of the
state (see Onifade, Imhonopi and Urim, 2013).

Uneven development as an indicator of failed state index which measures the disparity in development that arises as
a result of ethnic, religious, or regional crisis, this is because governments tend to be uneven in their commitment to
the social contract as a result of crisis. In 2006, this score was 9.0 but by 2009, it has risen to 9.5 before declining to
9.0 in 2011 and increasing slightly to 9.2 in 2013 but falls slightly to 8.8 in 2016. This shows that the level of uneven
development is very high in the country. This can be seen in cases where most development efforts are concentrated
at the Federal Capital Territory (FCT) and the capitals of regional government (State). This has resulted in agitation
by residents of other areas who felt neglected by the government in the provision of social infrastructures.
17
TABLE 1: NIGERIA FAILED STATE INDEX INDICATORS (2005-2016)

Demograp Refuges Group Uneven Legitimac Public Security Fraction

hic and Grievanc Developme y of the Servic Apparat alized
Pressure Internally e nt State e us Elites
Year Displaced
Person
2005 3 6.5 8.7 5.8 6.9 6.7 8.3 4.5
2006 8 5.9 9.1 9 9 8.3 9.2 9
2007 8.2 5.6 9.5 9.1 9.1 8.7 9.2 9.5
2008 8.2 5.1 9.4 9.2 8.9 8.7 9.2 9.3
2009 8.5 5.3 9.7 9.5 9.2 9 9.4 9.6
2010 8.4 5.8 9.5 9.3 9.4 9.1 9.3 9.4
2011 8.3 6 9.6 9 9 9 9.1 9.5
2012 8.4 6.5 9.7 8.9 9.1 9.1 9.2 9.8
2013 8.5 6.6 9.8 9.2 8.8 9.3 9.5 9.4
2014 8.3 6.9 9.8 8.9 8.8 9 9.5 9.5
2015 8.8 7.5 9.9 8.8 9.1 9.1 9.9 9.8
2016 9.1 7.7 9.4 8.8 8.8 9.4 9.7 9.9
Source: Failed State index by Global Fund for Peace (2005-2016)

Public service is an indicator for the measurement of the efficiency of the government agencies in the provision
of the key roles the state. It takes into cognisance the level of corruption, quality, access as well as the bureaucracy in
these agencies. The score for this indicator was 6.7 in 2005, 8.3 in 2006 and by 2009, it increased to 9.0. In the year
2011, it remained at 9.0, 9.3 in 2013 but by 2016, it rose to 9.4. This shows that there is high level of inefficiency in
the country’s public service.

Security apparatus is another indicator of the failed state index which measures the capability and capacity of the
country’s security agencies in curbing and curtailing occurrences of crimes, violence as well as all other social vices.
The score for this indicator was 8.3 in 2005, 9.2 in 2006 and by 2009 it increased to 9.4 before declining to 9.1 in
2011 and by 2015 it rose to 9.9 but slightly reduced to 9.7 in 2016. This shows obviously that the state security is not
in proper position to curtail crime in the country going by the very high score of this indicator. This can be seen in
the frequent occurrence of crimes and various violent attacks even on the security agencies.

Fractionalized Elites measures the possibility of local and national leaders engaging in deadlock and
brinksmanship for political gain, as this undermines the social contract. It includes pressures and measures related to
Power Struggles, Defectors, Flawed Elections and Political Competition. The score for this indicator was 4.5 in 2005
but rose to 9.9 in 2016. This shows that there is division among the elites in the country and this can be seen in the
frequent occurrence of violence among various supporters of different political parties and factions within the same
political parties.

The legitimacy of the state measures the general acceptability or otherwise of the government. The acceptability
of the state or otherwise could be judged by the process that produces the government and the representativeness of
the government. In 2006, the score for this indicator was 9.0 and by 2009, it has risen to 9.2 and by 2011, if fell
slightly to 9.0 before declining to 8.8 in 2016. This shows that the legitimacy of the government in power is under
18
great threat. This is not unconnected with the usual battles (Legal and Physical) that normally greet the
announcement of election results in Nigeria.

In sum, the security situation is shown to be deteriorating in all ramifications as increase in the score of the country
in all the components of failed state index is indicated. In other words, Nigeria has become more insecure over the
period.

Table 2: Failed State Index Rank, Poverty and Economic Decline in Nigeria (2005-2016)
Year Failed State Index Rank For Nigeria Poverty and Economic Decline
2005 54 3.8
2006 22 5.4
2007 17 5.4
2008 18 5.9
2009 15 6.6
2010 14 6.9
2011 14 7.3
2012 14 7.5
2013 16 7.5
2014 17 7.3
2015 14 7.6
2016 13 7.7

Source: Failed State index by Global Fund for Peace (2005-2016)

The rank of Nigeria on the failed state index and poverty and economic decline as shown in table 2 above
indicates a negative correlation. In 2005, Nigeria was the 54th most insecure country in the world while incidence of
poverty and economic decline was 3.8 but by 2009, Nigeria ranked as the number 15 most insecure country in the
world and incidence of poverty and economic decline increased 6.6. Also, in 2011, Nigeria ranked as the 14th most
insecure country in the world and incidence of poverty and economic decline stood at 7.3 and by 2016, Nigeria was
ranked as the 13th most insecure country in the world and incidence of poverty and economic decline was 7.7. From
the above, it is obvious that there is a negative relationship between failed state index rank and economic
development. This also means that insecurity negatively impact on economic growth and development. Therefore,
peace and security is not only a necessary condition for economic growth and development but also a sufficient
condition as well.

Table 3: Descriptive statistics

19
 Statistics
Maximum Standard Deviation
Variables Mean Minimum Skewness Kurtosis
Failed State Index rank 19.0 54.0 13.0 11.3 2.8 9.2
Failed State Index total 91.7 103.5 7.2 26.7 -3.0 9.9
Human Development Index 150.6 158.0 140.0 6.0 -0.7 2.3
Rank
Human Development Index 0.5 0.5 0.5 0.0 0.2 1.7
value
Prosperity index 130.6 136.0 122.0 4.9 -0.3 1.8
Source: Authors’ computation using Eviews 9.
To examine the level of performance of Nigeria on the failed state index (measure of insecurity) and economic
development, the descriptive statistics of all the variables are estimated and presented in table 3 above. The result
indicates that over the period, the average rank of Nigeria on the failed state index is 19 at 91.7 average value of the
index. With the minimum and maximum ranks 13 and 54 respectively, the minimum value of the index is 7.2 while
the maximum value is 103.5. This shows that the state of affairs of the country has deteriorated at an alarming rate
over the period 2005 to 2016 and Nigeria is among the twenty (20) most failed states in the world. This implies that
Nigeria is one of the most secure nations of the world.
Also, the result shows that over the years, the average Human Development Index is 0.5 at an average rank of 151.
The standard deviation of the Human Development Index is zero meaning there is no significant change in the index
over the period although that of the rank is 6.0. This consistently placed Nigeria among the low human development
countries. Further, the average rank of the prosperity index is about 131 with a maximum and minimum value 136
and 122 respectively. This means Nigeria is among the least prosperous nations in the world. Therefore, the
deterioration is economic development on one side and insecurity on the other side need to be address promptly.
Table 4: Pairwise Correlation analysis

Variables FSIRANK HDIRANK HDIVALUE PINDEX

Failed State Index rank 1.000000
Human Development Index Rank -0.508983 1.000000
Human Development Index value -0.534655 0.232190 1.000000
Prosperity index -0.622884 0.351766 0.544041 1.000000
Source: Authors’ computation using Eviews 9.

FINDINGS
To examine the relationship between insecurity and economic development, Pearson correlation was employed. The
correlation coefficients between the three indicators of economic development and failed state index were estimated
and the result is presented in table 4 above. The result shows that all the measures of economic development are
inversely related to the rank of failed state index. The correlation coefficient between the rank of human development
index and the rank of failed state index is -0.508983 while the correlation coefficient between the value of human
development index and the rank of failed state index is -0.534655. Also, the correlation coefficient between the rank
of failed state index and prosperity index is -0.622884. All the coefficients show a fairly strong negative relationship
between failed state index and all the three different measures of economic development. This implies that as
insecurity increases economic development falls. Therefore, rise in insecurity leads to deterioration in socioeconomic
wellbeing of the people in Nigeria.

20
 CHAPTER FIVE
5.0 SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION

5.1 SUMMARY OF FINDINGS

To examine the relationship between insecurity and economic development, Pearson correlation was employed. The
correlation coefficients between the three indicators of economic development and failed state index were estimated
and the result is presented in table 4 above. The result shows that all the measures of economic development are
inversely related to the rank of failed state index. The correlation coefficient between the rank of human development
index and the rank of failed state index is -0.508983 while the correlation coefficient between the value of human
development index and the rank of failed state index is -0.534655. Also, the correlation coefficient between the rank
of failed state index and prosperity index is -0.622884. All the coefficients show a fairly strong negative relationship
between failed state index and all the three different measures of economic development. This implies that as
insecurity increases economic development falls. Therefore, rise in insecurity leads to deterioration in socioeconomic
wellbeing of the people in Nigeria.

5.2 CONCLUSION
The fact that has become so clear in the course of this study is that, insecurity portends serious danger to the nation
development. Insecurity has been found to be a product of government inability to allocate resources effectively and
efficiently to bring development in the frontline sectors of the economy. Underdevelopment presents itself in the
form of unemployment and lack of infrastructural facilities bread insecurity. Nigeria can overcome her insecurity
situation by refocusing her policy to be more human centred. This is the fact that has been shown by the forgoing
analysis.
5.3 RECOMMENDATION

The study therefore makes the following recommendations

a) There is a dire need to refocus from the present curative policing to a community preventive policing in term of
security issues. Insecurity is a product of underdevelopment, when we address the issues of underdevelopment like
unemployment we achieve security and sustainable development.

b) There is the need to move from economic growth centred perspective to human centred approach. Any economic
growth that cannot significantly address the spate of unemployment, poverty, disease, hunger, illiteracy and the ever
increasing crimes and wars is not economic growth in the right perspective. Emphasis should be on the psychological
and material factors related to the measurement of human well-being rather than the traditional economic indicator,
the Gross Domestic Product.

c) There is also the need for the government to re-channel it resources to the rest frontline sectors like education,
agriculture, health and construction as this will satisfy the psychological and material well-being of the people.
Budgeting high for the provision of security since 1960 has failed to yield any useful result. Instead of continuing to
fight against the manifestation of underdevelopment, it will be proper we address the cause of the problem.

d) The government of Nigeria need to rise up to the challenge of distributing state resources equitable and responsibly.
The Nigerian populace has lost confidence in the government of the country due high rate of corruption and
misappropriation of government fund at all tiers of government. The people believe the common wealth of the nation
is being siphoned by some few individuals in power and hence the agitation that is nursing insecurity in the country.

21
e) The reserved army of unemployed youth provides the ready man power that support insecurity in Nigeria. There is
the need for the government to put in place more poverty alleviation/eradication programme that can help keep the
youth engaged in profitable ventures. Entrepreneurship skills acquisition has been found to be useful in reducing the
spate of poverty and unemployment in Nigeria (Adofu and Ocheja 2013).

f) As the government work towards achieving development which the lack of it is seen as the major cause of insecurity
in Nigeria, the government also should not neglect the issue of providing security for the people as this the first
responsibility of government to the citizens. The undercover state secret service (SSS) should be strengthened with
modern gadget and training in order to enhance their capacity to nip crimes and threats to national security in the
bud. This is because the use of military actions to confront militants appears to be very expensive and most often
escalates violence rather than douse tension.

22
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