Banditry, Implications on the Societal Economy and Prevention Strategies

Gbolahan Samuel Moronfolu

Introduction

In recent times, banditry has become a harsh reality in today’s Nigerian society. It has come in different forms manifesting as insurgency, kidnapping, suicide attacks, self-suicide bombing, corruption, armed robbery and the like. Several attempts have been made to reduce the effects of this menace in the Nigerian society, (Luechinger, 2019). 

The Nigeria government successively has tried using counter insurgent force as policy deterrence, with the imposition of stringent sanctions, in curbing actual attempts and putting appropriate measures in place to reduce the menaces of banditry in the country. 

Despite all these, the level of insecurity in the country is still high which has made Nigeria to consistently rank low in the Global Peace Index (GPI, 2021). This signifies a worsened state of insecurity in the country in recent times.

Consequently, the Nigeria economic rating with major focus on growth has largely been affected, having witnessed an increase in spending on military hardware as well as procurement of equipment for other security outfits and training, to make them more efficient in coping with the insurgent phenomena and ensuring sustainability of the National economic growth. 

Interestingly, Nigeria is considered an emerging power house, which annual growth rates have averaged more than 7% per year, making the Nigerian economy one of the fast growing economies in the world, (www.gallaup.com).

The National Bureau of Statistics (NBS), recently published Nigeria’s capital importation report for the second and third quarters of 2021. According to the report, the nation received a sum of $875.62 million foreign inflows in Q2 2021, representing a significant year-on-year decline.

A cursory look at the data from the NBS and complimented with historic data from the CBN and Nairametrics Research, reveals that an important component of the capital importation report, foreign direct investment (FDI) fell to its lowest level in over 11 years. 

Specifically, FDI dropped to $77.97 million in Q2 2021, indicating a 49.6% and 47.5% decline compared to $154.76 million and $148.59 million recorded in the previous quarter and Q2 2020 respectively. The last time Nigeria recorded lower FDIs, was in Q1 2010 when it managed to attract foreign direct investments valued at $73.93 million.

According to the Organization of Economic Co-operation and Development (OECD), FDI is an integral part of an open and effective international economic system and a major catalyst to a country’s development. However, Nigeria has failed to attract foreign investments in form of FDIs to its local businesses in recent times, which is a cause for worry especially for a country in dire need of an economic boost

Most economies target increased FDI due to its importance in driving economic growth. Foreign Direct investment boosts the creation of jobs in the host country as investors build new companies in the country, which in turn leads to increased income, more purchasing power, and an overall boost in the economy. 

However, the current state of Nigeria’s economy, ravaged by various structural, fiscal, monetary, and socio-economic issues has further dampened investors’ sentiments towards investing in the economy. 

According to a report by fDi Intelligence, a specialist division of the Financial Times, Nigeria has the highest number of tech startups, with most of them operating within the fintech industry; however, the country has failed in other areas.

The report outlined that despite the Lagos metropolis being renowned for its start-up ecosystem, there is a significant gap between the city’s tech ecosystem, its surroundings and the country at large, which suffers from chronically poor infrastructure and education, recurring political instability, and security issues.Moronfolu is a seasoned security consultant with many years of security and policing experience. FELLOW, Fourth Estate Professional Society (FFPS), he has also partaken in peace keeping operations within and outside the country and has flair for general security education.

Pic caption: Suspected bandits 

Credit: Google