Investments look south as insecurity heightens

In the wake of growing insecurity in the country, the Federal Government needs to be decisive in dealing with this challenge currently portraying the nation in bad light with a view to safeguard lives, secure people’s investments and attract foreign investors, writes ALEXANDER CHIEJINA

Across the globe, investors are faced with the task of making business decisions that would not only bring about business growth but also contribute towards the economy of any nation where their investments are domiciled.

Following recent reports by the United Nations Conference on Trade and Development benchmark (UNCTAD) which reveals that about $1.4trillion investment capital circulates globally, this figure indicates that capital in the global economy is volatile with lots of indicators considered by investors before deciding on the country to invest in. Among this critical index is security.

As insecurity remains a risk factor investors across the globe dread, the uncertainty insecurity creates is not only considered a bad omen for business, but sends warning signals to investors to take their investible funds to countries with adequate security for business.

While free flow of capital across national borders do not depend solely on statements by political leaders, they too ensure that measures are in place to correct any negative impression occasioned by insecurity which might place the nation’s economy in danger and subsequently to ruins.

As Nigeria's internal security remains extremely volatile following a spate of recent shootings, bombings and suicide assaults in the northern cities of Kano, Damaturu, Maiduguri, the Borno State and other parts of the country, the climate of uncertainty has created a dangerous trend which had before now remained alien in the nation’s index of social crimes.

With Boko Haram, colloquially translated into ‘Western education is sin,’ and which the dreaded sect calls itself Jama'atul Alhul Sunnah Lidda'wati wal jihad, or ‘people committed to the propagation of the prophet's teachings and jihad’, claiming responsibility of several attacks on civilians and military installations in the country, the religious sect has continued to issue threats that it would cause more havoc.

Incidentally, the group not only carries out their threat, infuriating Nigerians in the process, the spate of attacks over time showed the ineptitude of security agencies in the country to address the situation. Until now, such attacks had been associated with countries like Iraq, Iran, Pakistan, Afghanistan, Middle-East, among others.

With the turn of events, gun attacks has been introduced into the new wave of violence not only to the chagrin of Nigerians but has seemingly become a regular trend living in their trail tears and blood from victims and their relations.

Only recently, nearly 180 people were killed in Kano state in attacks on eight government security buildings by Boko Haram. Gun battles raged throughout the night between security forces and the Islamic sect, killing scores in the crossfire.

The dreaded sect, which claimed responsibility for more than 500 deaths over the past year, also attacked the regional police headquarters, local police stations and a local secret service headquarters. Its members dropped pamphlets across the city stating, “You should know that the security in Kano are using tricks in arresting our people…our war is with the government…anyone who is instrumental to the arrest of our members is assured that their own is coming.”

As the state of insecurity continues to wreck the land, Nigerians are worried that the country is gradually slipping inexorably into a state of social instability which would not only scare away potential investors but could further affect business activities across the country.

Commenting on the issue, Ona Ekhomu, a policy analyst and security consultant revealed that insecurity could have negative effect on foreign direct investment (FDI) flow into the country. While pointing that insecurity and FDI have negative correlation, Ekhomu, who is also the chairman, Trans-World Security disclosed that with the rate of insecurity in Nigeria, the uncertainty is too high in terms of investment flow.

“Foreign investors will not want to put their money in long term investments because of insecurity. They would rather consider short term investments. Insecurity discourages investment flow. For investment to come, there must be security for investors and their investments. The state of bombings is not good for Nigeria’s image and branding because all efforts to brand Nigeria without security amounts to nothing. It is dangerous because we will record investment outflow and not inflow,” Ekhomu revealed.

Speaking to BusinessDay, Sam Nzekwe, former National President, Association of National Accountant of Nigeria (ANAN), opined that the rising insecurity in various parts of the country is causing an incalculable damage to the nation’s economy.

According to him, though it is difficult to quantify the damage in absolute terms, the level of insecurity occasioned by these attacks can prevent the inflow of FDIs into the country.

“If there is anything foreign investors are scared of, it is insecurity. Boko Haram with the recent bombing of United Nations (UN) building in Abuja, attacks in Kano state and other parts of the country has portrayed the nation in bad light. How then do you expect foreigners to bring in their funds?” he queried.

On his part, Okechukwu Amadi, Chief Operating Officer, Twinsronk Consulting, lamented that the current insecurity in the country can cause a decline in FDI inflow if nothing is done by the Federal Government to address the situation.

While lamenting that at a time when Nigeria is considered as the preferred investment destination by investors from emerging markets and developed economies, the dreaded sect is already raising the level of insecurity.

“Basically, the economy of Borno State, where the sect is domiciled is virtually at a standstill; nothing seems to be working there. By extending their activities to other places like the Federal Capital Territory (FCT), most states in the North with tension in the South, the Boko Haram sect has worsened the whole matter.

“We must see the implications of what had happened and has happened again. We are talking of transforming the economy. We are talking of changing our perception in the international community. We are talking of bringing in more investors. While it is a nice thing to do, we also have to see the link between security and investment. Even local investors will not go to places that are not secure. It is high time the Federal Government address the spate of insecurity,” Amadi advised.

Intelligence sharing and logistics

Buoyed by rising threats posed to the nation’s internal security by the Boko Haram sect, the Federal Government and the United States (US) Government is set to collaborate in training, sharing of intelligence and modernisation of security services and logistics.

Rising from a meeting between officials of both countries in Abuja, under the aegis of United States-Nigeria Bi-National Commission last week, William Fitzgerald, US Deputy Assistant Secretary for African Affairs, revealed that the commitment is expected to reposition the nation’s security services to respond appropriately to security challenges and threats in the country.

Fitzgerald disclosed that prominent areas of collaboration include training, intelligence sharing, modernisation of the security services, logistics and other requirements.

According to the US Deputy Assistant Secretary, “Nigeria and the US Government have resolved to participate in more sustained working level engagement and cooperation on security matters, through the United States Embassy in Abuja, Ministry of Foreign Affairs and other relevant security agencies.

Lending his view, Martin Uhomoibhi, Permanent Secretary, Ministry of Foreign Affairs, government would continue to sensitise Nigerians on the need to take issue of security as responsibility of all, and not that of the security agencies alone.

“This is a national responsibility; a responsibility to be discharged by all Nigerians and indeed all residents in the territorial state of the Federal Republic of Nigeria,” the Permanent Secretary stated.

In the meantime, security experts believe that the worsening security condition especially in the Northern part of the country could be traced to poor governance and inability to address lingering problems of unemployment, illiteracy and many unmet needs.

Though conflicting figures continue to come up over the exact number of casualties recorded so far since the Islamic sect’s onslaught, the United States based Human Rights Watch (HRW) revealed that a total of 935 people have been killed in the 164 attacks suspected to have been masterminded by the Boko Haram sect since July 2009 when the group began its violent campaign.

The report showed that 550 people were killed in 2011 alone in 115 separate attacks and some 253 people killed in the first weeks of 2012 in 21 separate attacks. Already, the HRW puts the number of people killed in the January 20 attacks in Kano at 185, estimating it as the highest number of casualties from the Boko Haram attacks that originated in Maiduguri, Borno State.

These attacks have continued to attack widespread condemnation from the international community. While expressing his revulsion at the attacks on innocent people of Kano state which claimed lots of lives, Kamalesh Sharma, Secretary General, Commonwealth called for an independent probe of the incidents.

“We condemn these cowardly attacks, which have led to large-scale loss of life and critical injuries. The perpetrators of this despicable crime have shown a callous disregard for the lives of their fellow citizens and for the peace, stability, integrity and progress of their country. Terrorism is anathema to civilized society. The Commonwealth’s shared view is that conflict and differences should be resolved, and indeed, can only be resolved sustainably through inclusive dialogue built on the foundations of mutual understanding and respect,” the Secretary General stated.

Security and national development

No doubt, security is the backbone of any society; it is tied to its social, political, economic and cultural growth. With the negligence of this vital ingredient of development leading to all manners of social ills, including sectarian violence, the nation is currently bedeviled with the challenge of security crisis which is inimical to economic growth.

With major security problems confronting the nation to include socio-economic agitations, ethnic/religious crises, ethnic militias, boundary disputes, etc, these problems individually and collectively constitute threats to the peace, security and development of the country.

To economic and financial experts, the nation is making progress with economic reforms that are delivering strong economic fundamentals. According to these experts, the government has maintained prudent macroeconomic policies, strengthened financial institutions and, albeit slowly and unevenly, is undertaking reforms to transform the economy structurally.

Interestingly, the reform effort, aided by revenue from high oil prices, has led to significantly improved macroeconomic outcomes, including weaker inflation and strong GDP growth.

Notwithstanding these positive developments, the nation’s economy in under threat of containing political, civil and ethnic unrest, including Boko Haram attacks, which is not only a challenge for the political stability needed to consolidate the achievements of the past few years, but critical for national development,

For Joe Okei-Odumakin “Social cohesion among various groups and interests is important in the process of national development. There is need to rethink and improve on policy and institutional means of dealing with security concerns arising in the country.”

Way forward

What is worrisome to most Nigerians is the confidence with which the Islamic sect claim responsibility for their dastardly act. The Nigerian state has by acts of commission and omission, encouraged impunity and lawlessness, largely by politicising religion in violation of the secular principle enshrined in successive constitutions and failing to punish offenders who take the laws into their own hands, either in furtherance of religious extremism or as communal agitators.

Today, the sect is openly challenging the state, exploding bombs and engaging in gun raids on a regular basis in a murderous terror campaign. With President Jonathan’s promise to transform the nation’s economy, the President vowed to wipe out Boko Haram sect when he visited Kano recently.

According to President Jonathan “The people doing this are not spirit. They are among us. I seek the cooperation of all towards getting those involved in the havoc arrested. I assure Nigerians that the government will intensify its security in Kano and all over the country to unravel the misery behind this act.

“What is good for us as a nation is to look at our neighbours, to know what they do to enable us fish out these miscreants because if we don’t, one day, it may be against us. We will not rest, until these terrorists are wiped out. Nigerians should do everything possible to make sure that miscreants in our midst are immediately reported to security agents. It is the responsibility of all Nigerians to fight militancy.”

However, many fear that the dream of transforming the country’s economy may not see the light of day if things is not done to urgently address the insecurity the nation is presently experiencing.

For Pat Utomi, renowned economist and former presidential candidate, he noted that the insecurity situation in the country required strong leadership and a great deal of responsibility from every Nigerian.

“There are several factors to consider and I don’t believe that the Boko Haram sect is fighting a religious war. We know that this started as a revolt by the northern people against the northern elite. They realised that their elite had taken advantage of them and impoverished them. They only use religion as a platform of expression. The problem is the failure of the Nigerian state to address this issue.

“I think we need to educate the elite in the North that they should not fold their arms and watch things go bad. I know that due to their loss of the presidency, they have decided to stay aloof. They have to realise that if things go wrong, it would fall on everybody including them,” Utomi disclosed.

Lending his view, Ndoma-Egba, Senate Leader at the National Assembly stated that the solution to insecurity occasioned by the sect’s activities is proper education

“The solution to the security challenges in the country? I don’t know what the solution is because if we knew, the problem would have stopped by now. But I think first of all, if we get as many people as possible to benefit from education, then less and less people would be available for brainwashing. I believe that what is happening is brainwashing because Muslim and Christian clerics have condemned what is happening. What is happening certainly cannot be justified by any of the religions, whether Islam or Christianity.

“This is just a case of people being brainwashed into criminal acts but hiding under the guise of religion. Their motives certainly are not religious, because Muslims have also been their targets. When you begin to attack churches, it means the motive is no longer religious. You are just trying to provoke a situation deliberately to achieve predetermined political aims. For me, it is all politics. The solution is education,” the senate leader stated.

While Nigerians proffer solutions towards resolving the current security challenge, there is the need for the FG to continually strengthen the institutional capacity of security agencies in the wake of global terrorism and civil uprising.  Once the capacity of our security agencies is built, they will become not only proactive in the design of security architecture but also more effective in their operations.

It is high time security is taken seriously in the country. It is not a job to be done by ill-equipped security agents. Our perception of security should align with international standards. There is no point sending our security agents to confront terrorists who have been trained with the most sophisticated technology as modern security demands full technology mobilisation options.

Boko Haram: Timeline of terror

2002: Founded

2009: Hundreds killed when Maiduguri police stations stormed

2009: Boko Haram leader Mohammed Yusuf captured by army, handed to police, later found dead

Sep 2010: Freed hundreds of prisoners from Maiduguri jail

Dec 2010: Bombed Jos, killing 80; blamed for New Year's Eve attack on Abuja barracks

2010-2011: Dozens killed in Maiduguri shootings

May 2011: Bombed several states after president's inauguration

June 2011: Police HQ bombed in Abuja

Aug 2011: UN HQ bombed in Abuja

Nov 2011: Coordinated bomb and gun attacks in Yobe and Borno states