Growth Impact of Insecurity on the Nigerian Economy

Abstract

This research work investigated restructuring national security for economic growth in Nigeria for the period 1981 to 2017. In a bid to actualize the main objective of this study, a good number of literature materials were reviewed and data were collected from secondary sources such as the various editions of CBN Statistical Bulletin. The data were analyzed using Augmented Dickey-Fuller (ADF) Unit Root test, Johansen co-integration test, Error Correction Model. The selected variables (i.e. Gross Domestic product, Life expectancy at birth, terrorism risk index, discomfort index, adult literacy rate, corruption perception index and unemployment rate) had a cointegrating relationship indicating long-run relationship among the variables. The result of the Error Correction Mechanism (ECM) had the expected negative sign and statistically significant at the 0.05 level, an indication that any disequilibrium in the system will be adjusted. Based on the conclusion made, it is recommended that government should restructure and decentralize security architecture, increase capital expenditure on security and provide the enabling environment for people to work especially in the area of security of lives and property. This is against the back-drop that no meaningful economic activity can thrive in the face of insecurity. 1.