NESG Links Security Crisis to Higher Business Costs, Weaker Investment and Food Risks

Nigeria's security challenges are placing growing pressure on business activity and the wider economy, according to the Nigerian Economic Summit Group, which says persistent violence is affecting investment decisions, food production, energy infrastructure and other productive sectors.

The group set out its concerns ahead of the 32nd Nigerian Economic Summit in a statement issued by its Head of Strategic Communication and Advocacy, Ayanyinka Ayanlowo. NESG's position is that deteriorating security conditions increase the risks associated with investing in Nigeria, contributing to more expensive financing, weaker capital inflows and greater preference for shorter-term investments rather than projects requiring long commitments.

Agriculture is one of the areas the group identified as particularly exposed. NESG said banditry, terrorism and clashes involving farmers and herders have displaced millions of farming households, especially in the North-West, North-Central and North-East. It linked those disruptions to reduced cultivation and greater pressure on food availability. The group also referred to food-security warnings previously issued by the World Food Programme and the Food and Agriculture Organisation.

NESG said discussions at the forthcoming summit will consider ways to improve security around agricultural production. Among the approaches it highlighted are community-based arrangements, more deliberate deployment of law-enforcement personnel along farming corridors and technology-supported systems capable of providing earlier warnings of threats.

The organisation also identified crude oil theft as a major economic concern. It said losses have at times reached hundreds of thousands of barrels per day, reducing export earnings and foreign-exchange inflows. Security problems around oil installations have also affected production growth, raised repair costs and discouraged investment, according to the group.

To address those problems, NESG proposed stronger surveillance technology, increased transparency in upstream petroleum activities, tougher action against oil-theft networks and greater economic inclusion for communities in the Niger Delta.

Electricity and telecommunications infrastructure formed another part of the group's warning. NESG said repeated attacks on these facilities can interrupt power supply, electronic transactions, emergency communication and commercial activity. It wants a broader protection framework combining physical security, community participation, faster restoration of damaged facilities and stronger legal deterrence.

The group argued that security policy should not rely only on military responses. It also pointed to poverty, unemployment, inequality and social exclusion as conditions that need economic and social attention, and called for cooperation involving public institutions, businesses, security agencies and local communities.

The 32nd Nigerian Economic Summit is scheduled for October 26 and 27, 2026, at the Transcorp Hilton in Abuja. Its theme is "Growth that Works: Delivering Jobs, Productivity and Shared Prosperity." A Secure Nigeria session is expected to bring together government officials, security specialists, business representatives, communities and development partners to discuss protection of economic activity, infrastructure and investor confidence.