Security Challenges and Its Implication for Business Activities in Kaduna State

CHAPTER ONE

INTRODUCTION

1.1 Background of the study

Insecurity is a critical issue that has hampered industrialization and sustainable development in Nigeria in particular and Africa at large. Nigeria, widely regarded as Africa’s “giant,” has experienced unprecedented levels of insecurity, owing to the activities of Fulani herdsmen, Boko Haram insurgencies, seccessionist groups, armed robber attacks, kidnapping, political/religious crisis, murder, child abduction, and so on.Other criminal activities in these areas include vehicle destruction, the burning of churches, police stations, schools, hospitals, clinics, shops, army barracks, and residential houses, and the kidnapping of expatriates.

These challenges have made security a pivotal issue that has culminated in the allocation of the country‟s huge, meagre resources to the protection of lives and property. It has also made the government divert resources meant for developmental purposes to security. Also, the alarming rate at which the economic, political, social and religious affairs of the nation are dwindling at present is a real symptom of insecurity. Hence, insecurity has threatened the desperate attempt to hinder business activities, foiled the propensity of the country for socio-cultural tranquility, impeded foreign trade and sustainable development.

Consequent to this, the Global Peace Index (2012) rated Nigeria low as regards security matters. The implication is that Nigeria symbolizes an unsafe place of abode and has also been included among one of the terrorist countries in the world. Therefore, investors, foreigners, expatriates and even indigenes of Nigeria are scared about investing and committing their hard-earned resources to lucrative businesses in Nigeria. Insecurity thus refers to the state of fear, anxiety, restlessness, and uncertainty caused by our disgruntled and greedy politicians, militants, and the Boko Haram sect’s lackadaisical attitude.This is proven by the high rate of bombings and killings in Nigeria, political and economic related assassinations as well as the politically influenced communal wars, making the job of security agents in Nigeria porous and insignificant. Insecurity per second is a real menace to industrialization, healthy living, freedom of worship, national growth and sustainable development, because businesses thrive tremendously in an atmosphere devoid of rancour, economic, social, religious and political quagmires.

1.2 Statement of the problem

There is a high level of insecurity in the country and this has become a threat to business activities. No investor will be willing to invest where his investment is not secured. Many companies and businesses in the northern part of the country have stopped operations due to the “Boko Haram” scourge. The cost of life and material resources lost to insecurity in the country in the past few years is almost unquantifiable. The quagmire in which security challenges have placed this nation is almost unquantifiable. A nation endowed with both human and natural resources is suffering from the severe pangs of hunger, to the detriment of the citizenry. This scenario has prompted many youths to engage in nefarious and precarious activities such as armed robbery, kidnapping, child abduction etc. Youth, who will be tomorrow’s leaders, are being overlooked.This heinous situation has resulted in the migration of young people from one country to another in search of greener pastures, where many have perished.The frequent occurrence of bomb explosions, unknown gunmen’s attacks, kidnappings, and killings orchestrated by acclaimed religious extremists in the north, resource control agitation groups in the middle belt, and secessionist groups in the south has taken on a concerning dimension.According to security information released by Crime Guard, a security monitoring group, between 2020 and May 2021, there were no regions in the country that did not witness one kind of insecurity or the other in a 3-day incident in the country which claimed several lives and properties and led to the closure of many businesses in the country. As a result of insecurity in the country, many businesses and companies, in their numbers, are closing down operations in the north and relocating to other African countries for fear of the loss of lives and property. And the few remaining companies operate on a skeletal basis. Insecurity in the country not only affects foreign direct investment and business activities, it also affects business confidence as many companies lose confidence in establishing businesses in some parts of the country. Thus, this study seeks to investigate the security challenges and implications for business activities in Kaduna State based on this premise.

1.3 Objective of the study

The primary goal of this research is to investigate security challenges and their implications for business operations in Kaduna State.Specifically, the study seeks

  1. To examine the nature of insecurity in Nigeria and its causes,
  2. To investigate the if there is any effect of insecurity on business activities  in Nigeria
  3. To determine possible way remedies to curb the rate of insecurity in Kaduna State

1.4 Research hypotheses

The research is guided by the following hypothesis.

HO1: The rate of insecurity in Kaduna is low.

HO2: There is no significant effect of insecurity on business activities in Kaduna State.

1.5 Significance of the study

The findings of this study will be relevant to policy makers, governments, security operatives and northern residents, and they will add to the body of expertise. For the government and policy makers, the findings from the study will equip them with a handful of information on how to tackle the rising insecurity in the north. This would greatly reduce the crisis that has exacerbated the resurgence of ethnic militias and insurgents in Nigeria. It will always encourage the government to adopt dialogue instead of violence in the management and resolution of conflicts and differences between the state and the various ethnic nationalities. The study will contribute to the existing body of literature and give an opportunity for further research in related fields. More so, students, writers, and academics who are involved in conducting more studies in this area may find the analysis extremely useful.

1.6 Scope of the study

The scope of this research is limited to security challenges and their implications for business operations.It is, however, bounded by a number of local governments in Kaduna State.

1.6       Scope of the study

The scope of this study borders on security challenges and its implication for Business Activities. The is however delimited to selected local government in Kaduna State

1.7       Limitation of the study

The following factors poses to be a limitation during the course of this research

Financial constraint– Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
Time constraint– The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

1.8       Definition of terms

Insecurity: insecurity entails lack of protection from crime (being unsafe) and lack of freedom from psychological harm (unprotected from emotional stress resulting from paucity of assurance that an individual is accepted, has opportunity and choices to fulfill his or her own potentials including freedom from fear.

Business activities:  Business activities refer to all the economic activities, whether directly or indirectly related to making the goods and services available to the consumer and ensure profit earning through customer satisfaction.

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