LCCI: Investors losing confidence in Nigeria over rising insecurity

The Lagos Chamber of Commerce and Industry (LCCI) says the rising insecurity in Nigeria has reduced investor confidence.

Over the last few weeks, there has been heightened insecurity in the country with attacks in both northern and southern regions.

Incident of kidnappings, banditry, and terrorism have dominated conversations as several lives have been lost and properties destroyed.

In a statement on Wednesday, Toki Mabogunje, LCCI president, said the impact of insecurity on the Nigerian economy is multi-dimensional.

She said private and public investments have been crippled due to unsafe environment needed for business operations.

Mabogunje noted that insecurity will trigger rate of poverty, adding that inflation may rise further as goods are hindered from moving across various states.

“It is a sad commentary that kidnapping, herders-farmers conflict, ethno-religious violence, vandalism, armed robbery, banditry, arson, and insurgency have become routine occurrences in Nigeria,” she said.

“The crisis has crippled many private and public investments across the nation. Several businesses and investors in affected areas are currently counting their losses. Many households have lost their means of livelihoods, while some have been displaced.

“These have severe implications for food production and food distribution from farms to markets. We recognise insecurity as a major driver of the persistent increase in food inflation in recent years.

“The worsening security situation will trigger further inflationary pressure on food prices, thus exacerbating the poverty condition in the country.

“This alarming state of insecurity in the country has hampered the movement of goods, services, and persons across the country, with implications for agriculture, agro-allied services, trade and commerce especially in affected areas.”

The LCCI president called for urgent actions in addressing the insecurity crisis across the country.

She said government efforts in promoting private businesses may be jeopardized as more investors consider Nigeria as an unsafe investment destination.

“The crisis projects the Nigerian economy as an unsafe investment destination, and if unaddressed, would thwart government’s efforts in encouraging private investment inflows into the economy at a time the economy is in dire need of massive investments to bolster growth recovery, create jobs and alleviaate poverty,” she added.

“Many investors still see the Nigerian market as a risky venture despite the oil price recovery, vaccination dissemination and growth recovery.

“We believe confidence will remain weak in the short-term if the situation does not abate.”