Impact of Security Challenges on Economic Stability and Development in Nigeria: Analysing the Relationship between Insecurity and Socioeconomic Growth

Abstract

The study examined the impact of insecurity on Nigeria’s economic stability and development, highlighting the extent to which security challenges undermined key economic indicators. It addressed the persistent issue of rising insecurity, which has led to declining investments, business closures, inflation, and widespread unemployment. Despite various government interventions, the problem remained unresolved, raising concerns about the effectiveness of existing security policies. The research aimed to assess how insecurity affected economic stability and national development, investigate the link between security threats and investment trends, and evaluate policy responses. It sought to answer questions regarding the extent of insecurity’s impact on business growth, employment, inflation, and critical sectors such as infrastructure, education, and healthcare. A qualitative research design was adopted, relying on secondary data sources such as government records, reports from security agencies, journal articles, and policy documents. Findings revealed that insecurity severely weakened investors’ confidence, led to capital flight, and increased inflation due to disruptions in agricultural production and trade. Infrastructure development, education; and healthcare also suffered setbacks, further aggravating economic instability. Despite multiple security interventions, policy responses remained ineffective due to poor coordination, insufficient funding, and systemic corruption. The study underscored the need for comprehensive security reforms and economic resilience strategies to mitigate the adverse effects of insecurity on Nigeria’s development trajectory.