Investors losing confidence in Nigeria over growing insecurity, says LCCI

*The Lagos Chamber of Commerce and Industry says it is a sad commentary that kidnapping, herders-farmers conflict, ethno-religious violence, vandalism, armed robbery, banditry, arson, and insurgency have become routine occurrences in the country

Emmanuel Akosile | ConsumerConnect

The heightened insecurity resulting from attacks in both Northern and Southern regions in Nigeria has become a source of concern to many, especially investors in the economy.

The Lagos Chamber of Commerce and Industry (LCCI) discloses that the escalating security challenges in the country have reduced investor confidence.

There have been reports of incident of kidnappings, banditry, and terrorism have dominated public and private conversations as several precious lives have been lost and valuable property destroyed in the process.

Mrs. Toki Mabogunje, President of LCCI, in a statement said that the impact of insecurity on the Nigerian economy is multi-dimensional.

The LCCI President noted that public and private investments have been crippled due to unsafe environment needed for business operations.

Mrs. Mabogunje stated the insecurity challenges would increase the rate of poverty in the economy.

Inflation may rise further as goods are hindered from moving across various states, she said.

Mabogunje stated: “It is a sad commentary that kidnapping, herders-farmers conflict, ethno-religious violence, vandalism, armed robbery, banditry, arson, and insurgency have become routine occurrences in Nigeria.”

The statement also said: “The crisis has crippled many private and public investments across the nation.

“Several businesses and investors in affected areas are currently counting their losses. Many households have lost their means of livelihoods, while some have been displaced.

“These have severe implications for food production and food distribution from farms to markets. We recognise insecurity as a major driver of the persistent increase in food inflation in recent years.”

According to her, “the worsening security situation will trigger further inflationary pressure on food prices, thus exacerbating the poverty condition in the country.

“This alarming state of insecurity in the country has hampered the movement of goods, services, and persons across the country, with implications for agriculture, agro-allied services, trade and commerce especially in affected areas.”

While urging for urgent actions in addressing the insecurity crisis across the country, Mabogunje said government efforts at promoting private businesses may be jeopardised as more investors consider Nigeria as an unsafe investment destination.

“The crisis projects the Nigerian economy as an unsafe investment destination, and if unaddressed, would thwart government’s efforts in encouraging private investment inflows into the economy at a time the economy is in dire need of massive investments to bolster growth recovery, create jobs and alleviate poverty,” the statement said.

It added: “Many investors still see the Nigerian market as a risky venture despite the oil price recovery, vaccination dissemination and growth recovery.”