IMPACT OF TERRORISM ON NIGERIA ECONOMY (A CASE STUDY OF BOKO HARAM)

ABSTRACT: This study is on the appraisal of the impact of insurgency on nation’s economy growth. A case study of Boko Haram. the analysis involve the definition of research objectives, research questions and hypothesis primary data sources were used and data was analyzed using the chi-square statistical tool at 5% level of significance which was presented infrequency tables and percentages. The respondent under the study were 32 employees of the Achon Aid International Kaduna branch. the study findings revealed that there is a relationship between terrorism and socio-economic development of Nigeria based on the findings from the study, efforts should be made by the Nigerian government and stakeholders in halting terrorism as it affects the solid economic development of Nigeria.

CHAPTER ONE

INTRODUCTION

1.0   BACKGROUND OF THE STUDY

        Nigeria is a multi-ethnic and a multi-religious state with a population of about 160 million people cutting across the divides of ethnicity and religious beliefs. Comprising 36 states, a federal capital territory (FCT) and 774 Local Government Council, it is a complex, multi-religious and multi-ethnic nation state according to (Oyeniyi 2012). The complexity of Nigeria as a nation state is centered on its political formation, economic, social and religious inclinations.

         As a nation state, the country since independence has experienced several ethnic and religious crisis of various degrees and magnitude (Gilbert, 2013). Grappling with such political and economically motivated crises, successive administrations in Nigeria have been criticized by either the Muslim or Christian faithful when they are not favoured.

         The current terrorism (Boko Haram) in the North-East geopolitical zone of Nigeria that originally took the form of sectarian religious violence has escalated into tourist activities with International linkages and affiliations making it a relatively difficult nut for the Nigerian government to crack (Gilbert, 2014). Consequently, Nigeria has not known peace for about four years now.

         The emergence of the fundamentalist Islamic sect, has led to the flight for safety and security of most Nigerians residing in the North East, especially Christians. Since the commencement of the terrorist operations of the sect, they have adopted several methods to unleash terror on the people. And most states of Northern Nigeria have experienced their dastardly activities, but the worst hit has been Adamawa, Bauchi, Bornu, FCT (Abuja), Kaduna, Kano, Plateau and Yobe (Nwakaudu, 2012).

         According to Agomuo (2011) what started around 2009 in the far flung North East geopolitical zone of the country as a child’s play, has become a national  disgrace and of international concern. The emergence of the deadly group, whose activities assumed a worrisome dimension in 2009, has continued a reign of terror in parts of the country.

         The inhuman activities of the Islamist set, have unsettled the Nigerian nation to the extent that ample time and socio-economic cum political resources that ought to have been channelled to the development of the entire country is being wasted on various efforts geared towards checkmating and possibly, annihilating the terrorism in the North East geopolitical zone of Nigeria.

         Agreed that the North-east is the epicentre of the insurgency but its effect reverberates through the entire country and has constituted a major source of economic under-development to Nigeria. It is against this backdrop that this thesis seeks to critically appraise the impact of Boko Haram insurgency on the social-economic life of Nigerians and recommend ways forward.

1.1   TERRORISM (BOKO HARAM)

The terrorist is not the first major group attacks or militancy attacks that have faced the Nigerian state. Different sects or groups had arisen in Nigeria with little or real militancy approach in prosecuting their different objectives. Amongst them were: the Maitatsine Islamic fundamentalist sect in Northeast and Northwest Nigeria, Odua People’s Congress (OPC) from the Yoruba ethnicity in South-west Nigeria, Bakassi Boys and Movement for the Actualization of Sovereign State of Biafra (MASSOB) from the lgbo ethnic group in South Nigeria and the ethnicities in South-south Nigeria The activities of Boko Haram predates 2011 general elections, because there are the generations of people that have been engaging in different political, religious and ethnically-motivated crises in Northern part of Nigeria (Aro, 2013).

It is on record that Boko Haram has been operating under the name

Shabaab Muslim Youth Organization with Mallam Lawal as the leader since 1995 but leadership of the group shifted to Mallam Mohammed Yusuf when Mallam Lawal left Nigeria to continue his education in Saudi Arabia (Ekanem and Ejue, 2012). It is the leadership of Mohammed Yusuf that allegedly opened the group to political and popularity. By implication, Mallam Mohammed Yusuf is the one that officially founded Boko 2002 in the city of Maiduguri with the aim of establishing Sharia government in Borno and neighbouring states (Gilbert,2014).

Boko Haram grew out of a group of radical Islamist youth who worshipped at the Al-Haji Muhammadu Ndimi Mosque in Maiduguri, capital of Borno state, in the 1990 (Walker 2012). Its leader, Mohammed Yusuf, began as a preacher and leader in the youth wing of Shababul Islam of AhI-Sunnah, a Salafi group.

His literal interpretation of the Quran led him to advocate that aspects of western education he considered in contradiction to that holy book, such as evolution, the big bang theory of the universe development and elements of chemistry and geography should be forbidden, in Hausa (NIPPS, 2012 as cited by CGAR, 2014). While critic& of the govefnn.ent, Yusuf was involved in official efforts to introduce and implement Sharia in 6 several northern states in the 2000s. The failure to achieve this fully helps to explain Muslim youths’ anger with government deception and insincerity and the call for an authentic lslamist revolution (CGAR, 2014).

Boko Haram’s principal goal is to create a strict Islamic state in the north that it believes would address the ills of society, including corruption and bad governance The sects core beliefs are strict adherence to the Quran and the Hadith (sayings of prophet Muhammed), and their interpretation as sanctioned by lbn Taymiyyah.

Abu Qaqa; the group’s best known spokesman, explained that the group’s agenda is to destabilize Nigeria and take her back to the pre-colonial period when the Sharia law was practiced (CGAR, 2014). In the early stages, the Boko Haram sect was widely known to have mobilized its membership from women and children, school dropouts and unemployed university and polytechnic graduates, most of who tore their certificates.

The rationalization is that unemployment, underdevelopment and the general hopelessness pervading the society was caused by government which imposed western education on them and failed to manage the resources of the country to their benefits. Therefore, “western education is sin”; and this is the literal interpretation of Boko Haram in Hausa Language (Gilbert, 2014: i51) Although from the outset the sect’s mission was to impose Sharia on Nigeria, the leadership went about its preaching and interpretation of the Quran as a recipe for violence and an affront to constituted authority (Anyadike, 2013)

Serious concerns over its violent tendencies grew only after the death of Yussuf while in police custody, as well as his father in-law and sect financier, Ustaz Buji Foi, and the incarceration of members by state authorities.

1.2   STATEMENT OF PROBLEM

The emergence of Boko Haram insurgency has introduced a terrorist dimension, hitherto unknown, into the criminal space in Nigeria. Series of bombings have been carried out by the sect, as well as taking hostage of innocent citizens. Even the United Nations Building in Abuja was not spared in the bombing spree. In rich as well as poor countries, terrorism exerts a heavy toll on national economies. It is inevitable that the economic impact of terrorism would be more felt in unsophisticated mono-cultural low-income economies than they would be felt in highly advanced, diversified industrial economies. Therefore, the continued rise in terrorism activities in the country, if not checked, may result in greater investor apathy for the country and resulting in low inflow of Foreign Direct Investment (FDI), and would make institutional investors look for other stable economies to invest their money. On the state of the country, when people feel insecure, their appetite to invest, to buy or rent from the product of investment reduces; and that is why all over the world, any country that radiates an environment of insecurity naturally repels investment initiatives from both the international community and its own local investors. Hence, terrorism is a threat to the economic, political and social security of a nation and a major factor associated with underdevelopment; because it discourages both local and foreign investments, reduces the quality of life, destroys human and social capital, damages relationship between citizens and the states, thus undermining democracy, rule of law and the ability of the country to promote development (Adebayo, 2013). However, the researcher is analyzing terrorism and its effect to the socioeconomic development of Nigeria.

1.3 OBJECTIVES OF THE STUDY

         The main objective of the study is to ascertain the impact of insurgency on Nigerian economy. Other specifics objectives are;

  1. To discover the impact of Boko Haram in Nigerian national economy.
  2. To know the extent of which terrorism leads to unemployment.
  3. To explore its causes.

1 .4  RESEARCH QUESTIONS

The study intended to answer the following questions:

  1. Does terrorism (Boko Haram) affect socio-economic activities in Nigeria?
  2. Does terrorism leads to unemployment?
  3. What are the causes of Boko Haram?

1.5   STATEMENT OF HYPOTHESIS

         The following hypothesis was formulated for this study. It will be tested using the data generated from the opinion survey of the target respondents:

H0:   The activities of Boko-Haram insurgency has impact on          Nigeria’s economy

H1:   The activities of Boko-Haram insurgency has impact on          Nigeria’8 economy

1.6   SIGNIFICANCE OF STUDY

         The study is significant in many ways. One of the significance of this study is that the results will reveal the security lapses in the country and its impact on the nation’s economy.

         Also, this study will broaden the knowledge of the researcher and as well contribute to the existing literature on the subject matter. Additionally, it will be an invaluable tool for students, academia, institutions and individuals that might want to know more about the subject matter for further discovering.

1.7 SCOPE OF THE STUDY

         This study focuses on the appraisal of the impact of insecurity on Nigerian economy with particular focus on Kaduna Metropolis 2009-2015. The study will however discuss the relationship between security and economic growth and threat challenge of insecurity to the nation’s economy.

1.8 ORGANIZATION OF THE STUDY

         Terrorism generally has never done well to any society. The properties and live lost since 2009-2015 cannot be overemphasized. Thus, the study was conducted to identify the factors that influence the insurgency and its impact as well on Nigerian economy with particular focus on Kaduna and proffer solutions.

1.9 METHODOLOGY

The methodology described how the researcher intends to collect and gather data from the respondents. For the purpose of this study, survey research design will be used.

1.10 LIMITATION

         Since this study is a descriptive research, validation of data characteristics and variables described maybe limited to some extent as other statistical tools such as arithmetic mean, variance, standard deviation, and the central limit theorem were not applied to further prove the accuracy of findings in this study. The researcher only used descriptive statistical tools such as frequencies and percentages to describe data characteristics and findings.