Nigeria’s insecurity threatens investment, economic growth – NESG

The Nigerian Economic Summit Group (NESG) has issued a stark warning that escalating insecurity across Nigeria poses a significant threat to the country's investment landscape, agricultural output, infrastructure development, and overall economic growth. In a statement released ahead of the 32nd Nigerian Economic Summit, the NESG emphasized that persistent attacks on farming communities, oil installations, electricity infrastructure, and telecommunications facilities are crippling productivity, inflating business expenses, and deterring long-term investment.

Head of Strategic Communication and Advocacy Ayanyinka Ayanlowo stated that without improvements in national security, economic development will remain elusive. The group highlighted that widespread insecurity is escalating Nigeria's investment risk profile, leading to heightened financing costs, diminished capital inflows, and a penchant for short-term investments over long-term ventures.

Key security challenges identified by the NESG include disruptions to agricultural activities, crude oil theft, and infrastructure vandalism. Banditry, terrorism, and farmer-herder conflicts have displaced millions of agricultural households, primarily in the North-West, North-Central, and North-East regions. This displacement has led to a reduction in cultivated land and exacerbated food insecurity.

The World Food Programme and the Food and Agriculture Organisation have issued warnings about Nigeria's severe food shortages.

The NESG warned that crude oil theft continues to cost Nigeria substantial export earnings and foreign exchange, with losses reaching hundreds of thousands of barrels per day in certain periods. The attacks on oil installations have not only hindered production growth but also discouraged investment and escalated infrastructure repair costs.

To address this, the group proposed stronger monitoring technologies, improved transparency in upstream petroleum operations, greater economic inclusion of Niger Delta communities, and more stringent enforcement against oil theft networks.

Infrastructure security remains another major concern for the NESG. Repeated attacks on electricity transmission facilities and telecommunications installations have disrupted electricity supply, digital transactions, emergency communications, and commercial activities. The summit will explore a comprehensive infrastructure protection framework encompassing physical security, community engagement, rapid repair initiatives, and stronger legal deterrents.

Beyond military actions, the NESG advocated for economic and social interventions to tackle poverty, unemployment, inequality, and exclusion, which are fundamental drivers of insecurity. The group stressed that sustainable security necessitates coordinated efforts from government institutions, businesses, security agencies, and local communities. The NESG concluded by asserting that a Nigeria that invests in both security and development will achieve greater stability, productivity, and prosperity.