An Assessment of the Boko Haram Insurgency Terrorism and It's Impact in the Economy of Nigeria

1.0 Introduction

1.1 Background of Study

The origins of Boko Haram can be traced back to the early 2000s when the group was founded by Mohammed Yusuf in Maiduguri, Borno State, Nigeria. Initially, Boko Haram operated as a religious movement opposing Western education, which it viewed as corrupt and un-Islamic (Thurston, 2018). Over time, the group evolved into a violent insurgency, particularly after Yusuf's death in police custody in 2009, which led to a radicalization of its members and an escalation of attacks against government institutions and civilians (Comolli, 2015). From 2010 onwards, Boko Haram intensified its insurgency, carrying out bombings, kidnappings, and mass killings across northeastern Nigeria. The group's activities disrupted economic activities in Borno, Yobe, and Adamawa states, forcing businesses to shut down and causing large-scale displacement of people (Akinola, 2019).

The insurgency reached a critical point in 2014 when Boko Haram abducted 276 schoolgirls from Chibok, an incident that gained international attention and increased global pressure on Nigeria's government to combat terrorism (Zenn, 2020). The economic impact of Boko Haram's activities has been devastating. The destruction of infrastructure, closure of schools and markets, and displacement of farmers have severely affected economic productivity in the region (Okoli & Orinya, 2019). According to the World Bank (2021), the insurgency has contributed to a decline in Nigeria's Gross Domestic Product (GDP), particularly in the agricultural and trade sectors, while also discouraging foreign investment.

Terrorism has emerged as a critical global challenge, with devastating consequences for national and regional economies. Nigeria, the largest economy in Africa, has faced severe economic disruptions due to the activities of Boko Haram, an extremist group that has engaged in violent insurgency since 2009 (Campbell, 2020). The group, whose ideology is rooted in opposition to Western education and governance, has carried out numerous attacks on civilians, government institutions, and economic infrastructure, particularly in the northeastern region of the country (Onuoha, 2014).

The economic impact of Boko Haram's insurgency is extensive, affecting various sectors such as agriculture, trade, and foreign investment. The destruction of farmlands, displacement of farmers, and disruption of market activities have significantly reduced food production and increased poverty in affected areas (Eze, 2018). Additionally, the insurgency has led to a decline in foreign direct investment (FDI) as investors perceive Nigeria as a high-risk environment (World Bank, 2020). The cost of counterterrorism measures, including increased military expenditure and reconstruction efforts, has further strained the national budget, diverting funds from critical sectors such as education, healthcare, and infrastructure development (Okoli & Orinya, 2019).

Beyond economic setbacks, the insurgency has contributed to a humanitarian crisis, with millions of people internally displaced and dependent on aid for survival. The insecurity caused by Boko Haram has also hindered regional trade and economic integration within West Africa, affecting Nigeria's role as a major economic hub (Adebayo, 2021). Terrorism is broadly defined as the unlawful use of violence and intimidation, especially against civilians, in the pursuit of political, religious, or ideological aims (Schmid, 2011). One of the most devastating forms of terrorism in Nigeria is the Boko Haram insurgency, which has severely affected the country's socio-economic stability. Boko Haram, meaning "Western education is forbidden," is an extremist Islamist group that emerged in northeastern Nigeria in the early 2000s, with its violent insurgency intensifying in 2009 (Onuoha, 2014).

The impact of Boko Haram on Nigeria's economy has been profound, particularly in sectors such as agriculture, trade, foreign investment, and infrastructure development. The insurgency has led to massive displacement, destruction of property, and loss of lives, significantly disrupting economic activities in the northern region. According to the World Bank (2020), the insurgency has contributed to economic stagnation and increased poverty levels, further weakening Nigeria's overall economic growth.

1.2 Statement of Problems

Investigation revealed that the persistent attacks, destruction of infrastructure, and displacement of millions of people have left devastating scars on the country's economy. Businesses in the northeastern region, once thriving, are now struggling or completely shut down due to insecurity (Akinola, 2019). Farmers who once contributed significantly to Nigeria's food production are forced to abandon their lands, leading to food shortages and increased prices (Eze, 2018).

Furthermore, foreign investors are hesitant to commit their resources to Nigeria, fearing instability and unpredictable risks (World Bank, 2021). The tourism and hospitality sectors, which once had potential for growth, are severely affected as travel advisories warn against visiting parts of the country due to security concerns (Agbiboa, 2022). Government spending on counterterrorism efforts is draining resources that should be allocated to infrastructure, education, and healthcare, further widening development gaps (Okoli & Orinya, 2019). It is against the backdrop that this study seeks to address these problems by examining how terrorism affects key economic sectors such as agriculture, trade, investment, employment, and government spending.

1.3 Aim and Objectives of Study

The aim of this study is to assess the impact of the Boko Haram insurgency on the Nigerian economy. To achieve this aim, the study has the following objectives:

1. To analyze the extent to which Boko Haram insurgency has disrupted economic activities in Nigeria.
2. To examine the impact of terrorism on agricultural production and food security in affected regions.
3. To assess the effect of Boko Haram's activities on foreign direct investment (FDI) and investor confidence in Nigeria.
4. To evaluate the economic burden of counterterrorism efforts on government expenditure and national development.
5. To explore the implications of displacement caused by the insurgency on employment and productivity.
6. To recommend policy measures that can mitigate the economic consequences of terrorism and promote economic recovery.

1.4 Research Questions

Based on the stated objectives, this study seeks to answer the following research questions:

• To what extent has the Boko Haram insurgency disrupted economic activities in Nigeria?
• How has terrorism affected agricultural production and food security in the affected regions?
• What impact has Boko Haram's activities had on foreign direct investment (FDI) and investor confidence in Nigeria?
• How has the insurgency influenced government expenditure on counterterrorism efforts and national development?
• What are the economic implications of displacement caused by the insurgency on employment and productivity?
• What policy measures can be implemented to mitigate the economic consequences of terrorism and promote economic recovery?

1.5 Research Hypotheses

Based on the stated objectives, this study will test the following hypotheses:

• H₀1: The Boko Haram insurgency has no significant impact on the Nigerian economy.
• H₀2: The Boko Haram insurgency has significantly disrupted economic activities in Nigeria
• H₀3: The insurgency has led to a decline in foreign direct investment (FDI) and investor confidence in Nigeria.
• H₀4: Government expenditure on counterterrorism efforts has negatively impacted national development.

1.6 Significance of Study

The outcome of this research will contribute to existing literature on terrorism and economic development by offering data-driven analysis on how insurgency affects agriculture, trade, investment, and employment. The study will also serve as a reference for researchers and scholars interested in conflict resolution, security studies, and economic recovery strategies.

Furthermore, international organizations, including humanitarian and economic development agencies, will find the study useful in designing targeted interventions for displaced populations and conflict-affected regions. The study will also guide foreign investors in assessing risk factors associated with doing business in Nigeria.

Lastly, the study will offer practical recommendations to mitigate the economic consequences of terrorism and promote sustainable economic recovery in Nigeria.

1.7 Scope and Limitations of the Study

This study will focus on Borno State, which is the epicenter of the Boko Haram insurgency in Nigeria. Borno State has experienced severe economic disruptions due to the persistent attacks on infrastructure, businesses, and agricultural activities. The study will assess how the insurgency has impacted key economic sectors such as agriculture, trade, investment, and employment in the state.

Limitations of the Study

The study was limited by security concerns, which restricted access to certain conflict-affected areas, making it difficult to gather firsthand data from businesses and individuals directly affected by the insurgency. Additionally, some government agencies and financial institutions were reluctant to share sensitive data, which may have impacted the depth of economic analysis.

Furthermore, the study was limited to Borno State, meaning that while its findings provide insights into the economic impact of terrorism, they may not fully capture the experiences of other states affected by Boko Haram.

1.8 Definition of Terms

Boko Haram:

Boko Haram is an extremist militant group that originated in northeastern Nigeria, advocating for the implementation of strict Islamic law and opposing Western-style education. The group has carried out numerous attacks, including bombings, kidnappings, and assassinations, significantly impacting the security and economy of Nigeria (Walker, 2012).

Insurgency:

Insurgency refers to an armed rebellion or uprising against an established government or authority, often involving guerrilla tactics and violence. Boko Haram's insurgency in Nigeria has led to widespread destruction, displacement, and economic instability (Kilcullen, 2009).

Terrorism:

Terrorism is the unlawful use of violence and intimidation, especially against civilians, to achieve political, religious, or ideological objectives. Boko Haram's activities are classified as terrorism due to their deliberate attacks on non-combatants and government institutions (Schmid, 2011).

Economic Impact:

Economic impact refers to the effects of an event or policy on the economy, including changes in employment, investment, trade, and production. The Boko Haram insurgency has caused significant economic setbacks in Nigeria, particularly in the agricultural and commercial sectors (Anyadike, 2013).