NESG Sounds Alarm: Insecurity Imperils Nigeria's Economic Prosperity, Investment

The Nigerian Economic Summit Group (NESG) has issued a stern warning, stating that the escalating insecurity across the nation poses a significant threat to investment, agricultural output, infrastructure development, and overall economic expansion. The influential group is advocating for collaborative actions to restore confidence in Nigeria's economy.

In a statement released on Sunday by Ayanyinka Ayanlowo, its Head of Strategic Communication and Advocacy, preceding the 32nd Nigerian Economic Summit, the NESG highlighted that sustained economic progress would remain elusive without substantial improvements in national security. They noted that ongoing assaults on farming communities, oil facilities, power grids, and telecommunications infrastructure are hindering productivity, increasing operational expenses for businesses, and deterring long-term capital inflow.

The statement explicitly declared, "Where security fails, productivity collapses, investment retreats, and development stalls." The NESG further elaborated that pervasive insecurity is elevating Nigeria's investment risk profile, leading to increased financing costs, a reduction in foreign capital inflows, and a preference among investors for short-term ventures over more productive, long-term commitments. The group emphasized that re-establishing security would not only mitigate economic losses but also signal to both domestic and international investors that Nigeria remains a viable and attractive destination for long-term capital.

Key security challenges identified by the NESG as detrimental to economic performance include disruptions in agriculture, widespread crude oil theft, and the vandalism of critical infrastructure. The group pointed out that banditry, acts of terr*rism, and persistent farmer-herder clashes have led to the displacement of millions of farming households, particularly across the North-West, North-Central, and North-East regions. This displacement has resulted in a reduction of cultivated land and a worsening of food insecurity, a situation corroborated by warnings from the World Food Programme (WFP) and the Food and Agriculture Organisation (FAO) regarding Nigeria's severe food crisis. The upcoming summit plans to explore solutions such as community-based security arrangements, strategic deployment of law enforcement personnel in agricultural zones, and the implementation of technology-driven early warning systems to facilitate the resumption of farming activities.

Regarding oil production, the NESG issued a cautionary note that crude oil theft continues to strip Nigeria of substantial export earnings and crucial foreign exchange, with losses at certain times reaching hundreds of thousands of barrels per day. The group noted that the volatile security environment surrounding oil installations has hampered production growth, deterred new investments, and driven up the costs associated with infrastructure repairs. To counter this, the NESG suggested implementing more robust monitoring technologies, enhancing transparency in upstream petroleum operations, fostering greater economic inclusion for communities in the Niger Delta, and enforcing stricter measures against oil theft networks.

Addressing concerns about infrastructure security, the NESG voiced apprehension over repeated attacks targeting electricity transmission facilities and telecommunications installations. They explained that such incidents interrupt power supply, disrupt digital transactions, impede emergency communications, and adversely affect commercial operations. Consequently, the summit intends to deliberate on a comprehensive framework for infrastructure protection, which would encompass physical security measures, community involvement, swift repair mechanisms, and more stringent legal deterrents.

Moving beyond purely military solutions, the NESG advocated for economic and social interventions to tackle underlying factors like poverty, unemployment, inequality, and social exclusion, which they identified as key drivers of insecurity. The group asserted that achieving sustainable security necessitates coordinated efforts involving government institutions, the business sector, security agencies, and local communities. "Security and development are not alternatives, they are complements. A Nigeria that invests in both will be more stable, more productive, and more prosperous," the statement concluded.

The 32nd Nigerian Economic Summit, themed "Growth that Works: Delivering Jobs, Productivity and Shared Prosperity," is scheduled to take place on October 26 and 27, 2026, at the Transcorp Hilton Hotel in Abuja. A dedicated "Secure Nigeria dialogue" session during the summit will convene policymakers, security experts, business leaders, community representatives, and development partners to formulate strategies aimed at safeguarding productive activities, critical infrastructure, and investor confidence.