The first insurgency terrorist group appeared in April 2014. It is called Boko Haram which means “western education is a sin”. Another terrorist group which kills Nigeria is the NDA. They murder and plunder Nigerians! They destroy our country! How does the insurgency in Nigeria affect the economy?
Top 10 Negative Effects on Socio-Economy from Insurgents
1. Decrease of International Investments
One of the Boko Haram insurgency most notable strike was in mid-April 2014. They abducted about 200 school girls. It was the first time in the history of Nigeria when social media campaigns reached the international level. #BringBackOurGirls was the social outcry of all Nigerians.
Insurgency and terrorism in Nigeria decreased the number of international investment programs. It was especially obvious in the Northern regions of the country. The number of domestic investments of the country also decreased.
2. Increase of Security Measures in The Country
The Islamist insurgency in Nigeria showed the defenselessness of police and military forces in the northern areas. Furthermore, the group managed to insult Nigeria by hitting the very capital. In 2014, Boko Haram attacked the Nigerian Police Force Headquarters and the United Nations Headquarters in Abuja.
These acts of violence forced Nigeria to spend more money on security measures. The military operations against the insurgency in Nigeria created new problems to the Federal Budget. Boko Haram and Niger Delta Avengers managed to create several hot points in Nigeria. These hot points still require money from the Federal Budget.
3. Slap in the Face
When Boko Haram abducted children and attacked Nigerian military – they showed how weak Nigeria was. In the year of Boko Haram first attack, Nigeria hosted the first World Economic Forum. The attacks of insurgents showed that Nigerian officials couldn`t face modern terrorists. A lot of Nigerian international companies had problems with stock exchange markets. Boko Haram destroyed the face of Nigeria in the international arena.
4. Decrease of GDP
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In 2014, Nigeria was one of the most prominent economic countries in Africa. The insurgency in Nigeria quickly showed that Nigerians did not spend much on their defense. The downfall of Nigerian GDP was caused by Boko Haram and Niger Delta Avengers.
Instead of creating new jobs and building new houses, Nigerians were forced to repair the damaged infrastructure. The money from the Federal Budget was also transferred to the military operations, instead of building hospital, houses and promoting business.
5. Infrastructure Destruction
Boko Haram was ready to fight with Nigerian Army and Police Force. They destroyed a lot of schools and buildings in the Northern parts of Nigeria. These buildings still need repairing. It`s nothing compared to the destruction of the oil pipelines by Niger Delta Avengers. The repairing of the Oil and Gas facilities is a real problem for the financial system in Nigeria. Nigeria has already spent millions of dollars to repair the damage caused by Boko Haram and Niger Delta Avengers.
6. Oil Crisis
Nigeria was the biggest exporter of crude oil in Africa. Niger Delta Avengers destroyed a lot of pipelines which caused a decrease of the crude oil production by 70%. It caused the shortages of oil products in the country. At the same time, it caused the downfall of the Naira. Nigeria became unable to satisfy international oil contracts. Moreover, tons of crude oil were wasted because of clashes between the army and Niger Delta Avengers.
It should be reminded, that the downfall of crude oil led to the petroleum crisis. Even now, Nigeria can only produce about 60% of the 2014 crude oil volume.
7. Insurgency in Nigeria Effect on The Economy – Financial Crisis
When Niger Delta Avengers destroyed pipelines, people witnessed the downfall of the Naira. It made the Naira free-fall even faster. Still, it`s not the only reason for Naira`s downfall.
Destroying of the oil production facilities was a hard punch in the face of Nigeria. That`s why the Federal Government was forced to deal not only with the crisis, but with terrorists! Nigeria had to send soldiers and spend money on war instead of healing its economy!
8. Small Business Problems
Small businesses in Nigeria had to deal with Boko Haram and Niger Delta Avengers by themselves! Agriculture entrepreneurs in the Northern regions had to leave their posts and save families. All Nigerians witnessed the destruction of small business facilities in the North by Boko Haram and Niger Delta Avengers. It created the negative growth of small businesses in Nigeria. People did not risk investing in businesses with the terrorists at their doorstep.
9. Jobs Market Decrease
Small businesses in the Northern parts of Nigeria were able to create hundreds of jobs for young people. Unfortunately, insurgency and terrorism in Nigeria created jobless conditions in several regions of the country. Young people did not have opportunities to survive. Some young Nigerians had only one choice – to become a part of the army or terrorist groups. Some young people selected the second option. It led to the further escalation of the conflicts.
10. Flows of Refugees
People did not want to stay in the regions where Boko Haram and Niger Delta Avengers were active. They had no choice but to leave their houses. Unfortunately, other cities in Nigeria couldn`t provide jobs or accommodations for them. It led to the further tensions between people.
Insurgency in Nigeria effect on the economy. Conclusion
What about the insurgency in Nigeria? Terrorism in Nigeria has provided only losses. Hundreds of people died because of insurgent groups. Millions of dollars have been spent on security measures. Thousands of Nigerians abandoned their houses and businesses to flee from the terrorism. Insurgents and terrorists in Nigeria brought not only death but also financial problems.
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