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Impact of Security Threats on Investment in Nigeria

Author

Listed:
  • Isa Jibrin OKPE

    (Benue State University, Makurdi, Nigeria)

  • Victor Ushahemba IJIRSHAR

    (Benue State University, Makurdi, Nigeria)

  • Amina Shehu IBRAHIM

    (Department of Economics, Benue State University, Makurdi, Nigeria)

  • Samuel Igwe OGODA

    (Department of Economics, Benue State University, Makurdi, Nigeria)

Abstract

A study on the relationship between security threats and investment in Nigeria is essential for providing empirically data-driven insights into how security challenges, such as insurgency, crime and instability, influence investment decisions. This research can guide policymakers, investors and stakeholders in formulating effective strategies to mitigate risks, enhance investor confidence and promote economic growth. This study employed the vector error correction model method to examine the association between security threats and investment in Nigeria from 1986 to 2021. The analysis of the long-term perspective revealed an adverse relationship between security threats and domestic investment and between security threats and foreign direct investment in Nigeria. Additionally, the study revealed that although security threats do not substantially influence domestic investment in the short run, they exhibit a pronounced adverse impact on economic growth in the long run. Consequently, security threats significantly affect domestic investment and foreign direct investment in Nigeria in the long run. As a result, the study suggests that the Nigerian government should enhance security measures to counteract issues such as political instability, terrorism and social unrest, thereby cultivating a more conducive business environment that stimulates both domestic and foreign investment activities.

Suggested Citation

  • Isa Jibrin OKPE & Victor Ushahemba IJIRSHAR & Amina Shehu IBRAHIM & Samuel Igwe OGODA, 2024. "Impact of Security Threats on Investment in Nigeria," CECCAR Business Review, Body of Expert and Licensed Accountants of Romania (CECCAR), vol. 5(1), pages 59-72, January.
    • Handle: RePEc:ahd:journl:v:5:y:2024:i:1:p:59-72
    DOI: 10.37945/cbr.2024.01.07
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    References listed on IDEAS

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    More about this item

    Keywords

    domestic investment; foreign direct investment; security threats;
    All these keywords.

    JEL classification:

    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • P33 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Relations, and Aid

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