Effect of Insecurity on Nigeria’s Economic Growth

Abstract

The frightened level of insecurity in Nigeria has increased the crime rate and terrorists’ attacks in different parts of the country, leaving unpalatable consequences for the nation’s economy and the continued security challenges in Nigeria. The study examined the effect of insecurity on Nigeria economic growth. The research design employed for the purpose of this research is ex-post facto research design. The data used for this study are basically time series data covering 2011 to 2020. The procedure in the analysis was multiple regression econometric procedure. The study commenced its analysis with descriptive statistics, to verify if the data sets are normally distributed so as to avoid spuriousness of empirical result. The Auto-regressive distributed lag regression was also employed with the help of E-view 10 package to ascertain the significance of each of the constant parameters. The study found that insecurity indices (terrorism risk index and corruption perspective index) have significant effect on Nigeria economic growth. The study recommended that Federal government should formulate and effectively implement policies and programmes capable of addressing the root causes of insecurity in Nigeria such as poverty, corruption, unemployment, environmental degradation, dearth of infrastructural facilities, uneven development, among others.