Abstract
This study was on a critical analysis of the insecurity and its implication on economic growth in Nigeria. two objectives were raised which included: To find out the effect of insecurity on business and to find out the effect of foreign direct investment. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from selected residents in Kaduna state. Hypothesis was tested using Chi-Square statistical tool (SPSS).
Chapter one
Introduction
1.1Background of the study
Recently, Nigeria has witnessed an unprecedented level of insecurity. This has threatened national security and has prompted huge allocation of the national budget to security (Achumba and Akpor 2013). The 1999 Constitution of the Federal Republic of Nigeria specifically states that “The security and welfare of the people shall be the primary purpose of government”. Unfortunately, government on this constitutional responsibility has failed to provide a secured and safe environment for lives, properties and the conduct of business and economic activities. Polices aimed at strengthening public governance and fighting corruption has flourished in Africa with the discovery of the relationship between institution underdevelopment, inefficient polices and political instability. Beginning from 2000, a number of African countries have created simultaneous anti-corruption polices to join the global dynamics. Anti-corruption agencies can take on a wide variety of forms, the organization for economic cooperation and development (OECD), multi-purpose agencies with laws enforcement powers, law enforcement intuitions and preventive, policy development and co-ordination institutions. Issues related to security challenges and how it affects the performance of Nigerian economy and development have over the years elicited several agitations regarding its source and awful consciences of socio-economic development of the county. The economic landscape in Nigeria as stated by Akindiyo (2014), has been shattered by the prevalent twin evil of violence and crime. The failure of the successive administration in Nigeria to adequately address issues of unemployment, poverty and unequal distribution of wealth among ethnic nationalities, decisively resulted to agitation anger and violent crimes against the Nigerian state by some groups and individual. Akindiyo (2014) and Otto and Ukpere (2012), since the advent of the present democratic dispensation, raw forms of violence such as militancy, kidnapping for ransom, bombing innocent people, pipeline vandalization, armed robbery and destruction of government properties.
Security challenges can be traced to the early years of military rule when large quantities of arms were imported into the country for the use of the military during and after the Nigerian civil war, some of which got into the hand of the civilians. Soon after the civil war these arms were used by civilians and ex-military men for mischievous purposes such as armed robbery, (Olabanji and Ese 2014). The 1999 constitutions make provisions for the rights of citizens. The inability of government to provide a secure and safe environment for lives, properties and the conduct of business and economic activities has led to resentment and disaffection among business investors. This has resulted in communal clashes, and religious violence and crime in different parts of the country that has destroyed lives and properties, disrupted businesses and economic activities, and retarded economic growth and development in Nigeria. No business investors whether local or foreign t will be motivated to invest in an unsafe and insecure environment. In a globalized world investors are not only looking for high returns on their investments but also safe environment for their investments. Thus the alarming level of insecurity in Nigeria has made the economy unattractive to foreign investors and has slowed down the level of business activities, and this has impacted negatively on economic growth and development.
Statement of the problem
There is high level of insecurity in the country, particularly, in the Northern zone where ‘Boko Haram and bandit has become a threat to business activities. No investor will be willing to invest where his investment is not secured. Many companies and businesses in the Northern part of the country have stopped operation due to Boko Haram and bandit scourge. The cost of life and material resources lost to insecurity in the country since the past few years is unquantifiable. The frequent occurrence of bomb explosions, orchestrated by the acclaimed religious extremists in the northern part of the country, has assumed a worrisome dimension. As a result of insecurity in the country many businesses and companies in their numbers are closing down operations in the north and relocating to other African countries for fear of loss of lives and properties. And the few remaining companies operate on skeletal bases. Insecurity in the country not only affects foreign direct investment and business activities, it also affects business confidence as many companies lost confidence in establishing businesses in some parts of the country.
Objective of the study
The objectives of the study are;
- To find out the effect of insecurity on business
- To find out the effect of foreign direct investment
Research Hypotheses
The following research hypotheses were formulated;
H0: there is no effect of insecurity on business
H1: there is effect of insecurity on business
H0: there is no effect of foreign direct investment
H2: there is effect of foreign direct investment
Significance of the study
The study will be beneficial to students and the Nigeria especially on how to tackle insecurity situation in Nigeria. the study will give a clear insight on the insecurity and its implication on economic growth in Nigeria. the study will also serve as a reference to other researcher that will embark on the related topic
Scope and limitation of the study
The scope of the study covers a critical analysis of the insecurity and its implication on economic growth in Nigeria
Limitations/constraints are inevitable in carrying out a research work of this nature. However, in the course of this research, the following constraints were encountered thus:
- Non-availability of enough resources (finance): A work of this nature is very tasking financially, money had to be spent at various stages of the research such resources which may aid proper carrying out of the study were not adequately available.
Time factor: The time used in carrying out the research work is relatively not enough to bring the best information out of it. However, I hope that the little that is contained in this study will go a long way in solving many greater problems.
This material content is developed to serve as a GUIDE for students to conduct academic research
A CRITICAL ANALYSIS OF THE INSECURITY AND ITS IMPLICATION ON ECONOMIC GROWTH IN NIGERIA
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