A CRITICAL ASSESSMENT OF THE IMPACT OF CROSS-BORDER INSECURITY ON THE NIGERIAN ECONOMY

CHAPTER ONE INTRODUCTION 1.1 Background of the Study Nigeria is currently grappling with a severe challenge—cross-border insecurity—which poses significant threats to the nation’s economic stability. While this issue is not exclusive to Nigeria and is experienced in various regions around the world, understanding Nigeria’s specific context, challenges, and responses can contribute to global discussions and strategies aimed at combating transnational threats. Regional bodies such as the Economic Community of West African States (ECOWAS) have a critical role to play in fostering cooperation and developing holistic strategies to address this growing concern. In Nigeria, the primary drivers of cross-border insecurity include armed banditry, terrorism, human trafficking, and smuggling. The country shares borders with several nations—Niger, Chad, Cameroon, and Benin—which complicates efforts to ensure effective border control. These borders are notably porous, allowing for the infiltration of terrorist groups like Boko Haram and the Islamic State West Africa Province (ISWAP), and the trafficking of illegal goods (Ewi & Salifu, 2017). The problem is further aggravated by socio-economic inequality, political instability in neighboring states, and inadequate border management systems (Onuoha, 2013). Due to Nigeria's strategic geographical location, issues of cross-border insecurity have become an alarming concern not only for national security but also for the broader West African region. The rise of criminal syndicates, armed factions, and terrorist organizations has facilitated the smuggling of weapons, drugs, and other contraband across borders. This has had a detrimental impact on Nigeria’s economy, hampering investment, slowing economic growth, and deteriorating overall human welfare (Egwuonwu & Ikejiaku, 2021). The nation’s weak border surveillance has left it vulnerable to illicit activities, threatening both national development and economic stability. It’s important to recognize that the borders of most African countries, including Nigeria, were arbitrarily drawn during colonial rule. These borders were created under challenging conditions and without proper consultation or physical understanding of the regions involved. Colonial powers intentionally designed these boundaries to serve their own political and economic interests—such as free access to colonies and continued exploitation—while later offering aid to maintain influence. These borders, drawn during the 1885 Berlin Conference, were largely theoretical constructs placed on maps with little regard for ethnic, linguistic, or cultural coherence (Gashaw, 2017). Nigeria, like many African states, continues to struggle with the long-term consequences of these inherited boundaries. Despite efforts by various administrations, border-related challenges remain one of the most persistent issues facing the nation. The porous nature of Nigeria’s northern borders, in particular, has allowed the unchecked flow of weapons and exacerbated problems related to food insecurity, which further threaten economic wellbeing and development (Ogunleye, 2023). To address these challenges effectively, it is vital to adopt a comprehensive strategy—one that strengthens border security, encourages regional cooperation, and builds economic resilience. This study therefore focuses on exploring cross-border insecurity through a qualitative lens, with special attention to its economic and security dimensions and the countermeasures required to address them. 1.2 Statement of the Problem Cross-border insecurity has emerged as a significant and persistent challenge in Nigeria, posing a direct threat to the country’s economic development. Given Nigeria’s heavy reliance on agriculture, trade, and foreign investments, the instability surrounding its borders has placed immense strain on these key economic sectors. The situation is exacerbated by the growing presence of insurgents, traffickers, and smugglers, as well as by the illegal trade in arms and humans. Nigeria's porous borders—especially with countries like Niger, Chad, Benin, and Cameroon—only make these challenges more pronounced. Frequent attacks along border regions and trade routes have discouraged both domestic and foreign investors, reducing the chances of economic expansion. This instability also impedes the free flow of goods and services, increases transaction costs, and reduces the competitiveness of Nigerian businesses in both regional and international markets (Adeniyi, 2019). Beyond the immediate financial impact, cross-border insecurity also has broader social and economic consequences. It contributes to deepening poverty, worsening inequality, and weakening the social fabric. Government spending on security continues to increase, diverting resources away from essential services such as healthcare, education, and infrastructure (Okoli & Iortyer, 2014). One sector that has suffered significantly is agriculture. Insecure environments in border communities have forced many farmers to abandon their land, resulting in reduced productivity and heightened food insecurity (FAO, 2019). It is evident that the economic cost of cross-border insecurity is substantial. For Nigeria to experience meaningful growth and stability, these issues must be addressed comprehensively. Accordingly, this study seeks to fill a critical gap in the literature by evaluating the effects of border porosity on Nigeria’s economy, especially in the areas of trade, investment, economic development, human displacement, and national security expenditure. 1.3 Objectives of the Study The main objective of this research is to critically examine the effects of cross-border insecurity on Nigeria’s economy. To achieve this, the study aims to: i.Evaluate the impact of cross-border insecurity on Nigeria's economic development and overall growth. ii.Explore how Nigeria’s trade and investment relationships with neighboring countries have been affected. iii.Investigate how human migration patterns have been influenced, particularly in terms of rising numbers of Internally Displaced Persons (IDPs) and refugees. iv.Assess the effectiveness of Nigerian government strategies and policies aimed at combating cross-border insecurity. 1.4 Research Questions i.In what ways does cross-border insecurity impact Nigeria’s economic growth and development? ii.How do Nigeria’s trade and investment ties with neighboring countries suffer as a result of cross-border insecurity? iii.What are the effects of cross-border insecurity on population displacement, with a focus on the rise in refugees and IDPs? iv.How effective are the Nigerian government’s strategies and policies in addressing cross-border insecurity? 1.5 Significance of the Study This research is essential for highlighting the economic costs associated with cross-border insecurity and advocating for more effective border control strategies and regional cooperation. The findings aim to underscore the value of collaborative regional efforts in mitigating insecurity, fostering economic integration, and spurring development. Civil society organizations and NGOs can leverage these insights to advocate for affected communities and promote stronger security policies. Moreover, this study enriches academic discourse by examining the nexus between security and economic development. It provides a framework for further research and may help improve existing theories or develop new models that better explain how cross-border insecurity influences national economies. For businesses operating within Nigeria—especially those in high-risk regions—this research offers important perspectives on risk assessment, strategic planning, and operational adjustment. By exploring the broader economic and social consequences of insecurity, the study also sheds light on challenges in human mobility, trade, and agricultural productivity. It closes by evaluating how government interventions have performed and offers recommendations for more effective approaches to tackling cross-border threats. 1.6 Scope of the Study Although this research does not focus on a specific time frame, its geographical emphasis is on Nigeria, particularly the border regions shared with Niger, Chad, Cameroon, and Benin. It also considers interactions with neighboring countries, recognizing the transnational nature of the insecurity. The study investigates the impact of cross-border insecurity on key sectors such as agriculture, manufacturing, services, foreign and domestic investment, as well as legal and illicit trade. It will also consider terrorism (notably by Boko Haram and ISWAP), smuggling (including arms, drugs, and illegal goods), banditry, kidnapping, and human trafficking. 1.7 Limitations of the Study While conducting this study, several limitations were encountered. First, the researcher had to rely heavily on publicly available information, some of which may be inaccurate or incomplete, particularly due to limited access to certain high-risk regions. The absence of a clearly defined time scope also posed challenges in narrowing down the vast amount of relevant data. Additionally, restricted access to classified or sensitive information on national security matters may have affected the depth and reliability of some findings. Financial constraints also limited the researcher’s ability to travel for fieldwork or acquire necessary research materials. 1.8 Research Methodology The study utilizes a qualitative research design combined with a historical approach to analyze the impact of cross-border insecurity on Nigeria’s economy. Due to logistical constraints, the research draws primarily from primary and secondary sources, including government publications, policy documents, and archival materials. 1.9 Definition of Terms Insecurity: A condition marked by fear, instability, or vulnerability to harm and danger. Cross-Border Insecurity: Refers to situations where security threats extend beyond a single country’s boundaries, affecting neighboring regions or nations as well.