Kidnapping: More businesses may collapse under Tinubu

 

By Abimbola Tooki

Kidnapping is a serious issue being discussed daily at many fora across Nigeria, and its impact on the economy and the well-being of its citizens cannot be understated. The fear and risk associated with transporting food and other essential goods can disrupt supply chains and add pressure to the current inflation, food shortages, and a decline in economic activity. Additionally, the overall sense of insecurity can deter investment and hinder the country's economic growth.

According to Ambassador Adejare Bello, immediate past Nigerian ambassador to Mexico, rising youth unemployment is a major factor contributing to the prevalence of criminal activities such as kidnapping in the country.

The high rate of youth unemployment in Nigeria, Bello said, has provided a pool of individuals who are vulnerable to engaging in criminal activities, including kidnapping for ransom.

One reason why kidnap for ransom has come to stay is the economics surrounding it. The end result, he observed, is that many of the Nigerian youths do not have the capacity to think for themselves or let alone find creative ways of earning a living.

According to available data, between the $545,000 paid to secure the freedom of Ernest Ohunyon in Edo state in November 2011, and the $6,868 paid to free Ojo Ekundayo and Benjamin Iluyomade in Ondo state at the end of March 2020, at least $18,343,067 changed hands between victims and kidnappers.

It is important to point out that in the earlier years, there were fewer incidents, and larger amounts changed hands. Now there are a lot more incidents for smaller amounts, but the sheer number of incidents means that the kidnap economy now makes more money.

An investigation by the Voice of America in September 2019 revealed that kidnappers demand between $1,000 to $150,000 as ransom, depending on the financial resources of the victims. Kidnapping, in this case, does appear to pay.

Hamisu Bala is another notable kidnap merchant but operates mainly in the North West and North Central (unlike Evans whose activities were focused on the south), in addition to supplying weapons to terror groups, cattle rustlers and militias across the North.

Wadume was said to have made millions from ransom. His gang carried out a kidnapping in Takum on 16 February 2019 of a petrol dealer Usman Garba. The Wadume gang demanded N200 million ransom. Despite that relations of the victim were able to hand over N106.3 million, he was killed. In late April 2019, the chairman of Universal Basic Education commission, Dr Muhammad Mohmoud Abubakar and his daughter were abducted by armed gangs in military uniform along Kaduna-Abuja highway. Their driver was also shot and killed during the incident which occurred at Kurmi Kari village.

Bello, like many other prominent Nigerians, emphasized that he will never travel to some parts by road.

It is crucial for the Nigerian government to take proactive measures to address the root causes of kidnapping and to improve security across the country. This may involve strengthening law enforcement, investing in intelligence gathering and surveillance, addressing socio-economic disparities, and implementing policies to combat organized crime and insurgency.

Furthermore, efforts to promote regional cooperation and coordination among security agencies can also contribute to creating safer environments for economic activities to thrive. By addressing the underlying security challenges, the government can work towards creating a more stable and conducive environment for economic growth and development.

Kidnapping can have several detrimental effects on economic growth, including:

 

Disruption of Economic Activities

Kidnapping can disrupt economic activities by instilling fear and uncertainty in the population. This can lead to decreased consumer confidence, reduced investment, and a slowdown in business activities.

 

Reduced Investment

Kidnapping can deter both domestic and foreign investment in the affected regions or the country as a whole. Investors may see the risk of kidnapping as a barrier to establishing or expanding businesses, leading to a reduction in capital inflows and economic development. Business men and women may be hesitant to establish new branches, distribution centers, or offices in regions where the security situation is precarious.

 

Impact on Tourism

In countries with a significant tourism industry, kidnapping incidents can deter tourists from visiting, leading to a decline in tourism revenues and related businesses. This can have a cascading effect on employment and economic growth in the tourism sector.

 

Disruption of Supply Chains

Kidnapping can disrupt supply chains, particularly in industries such as agriculture and transportation. This can lead to shortages of essential goods, inflation, and reduced economic output. Business people may avoid traveling to regions where kidnapping is prevalent, leading to disruptions in supply chains and trade routes.

 

Increased Costs

Businesses and individuals may incur additional security costs to protect themselves and their assets from the risk of kidnapping. These increased costs can reduce profitability and investment in productive activities.

Brain Drain

In extreme cases, kidnapping and insecurity can lead to a "brain drain" as skilled professionals and entrepreneurs seek to relocate to safer environments. This can result in a loss of human capital and talent, which is detrimental to long-term economic growth.

 

Limiting Networking and Business Opportunities

Kidnapping can limit the ability of business people to network, attend meetings, and explore new business opportunities, particularly in regions with security challenges. This can hinder the growth and diversification of business activities.

 

Impact on International Business

For businesses engaged in international trade, kidnapping incidents can negatively impact cross-border activities. The security situation in a country can influence the willingness of foreign partners, investors, and customers to engage in business transactions.

Overall, kidnapping undermines the stability and confidence necessary for sustained economic growth. Addressing the underlying security challenges is crucial for creating an environment conducive to investment, entrepreneurship, and economic development.