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This paper examines security challenges and the implications for business activities in Nigeria.

The paper seeks to determine the implications of security problems on  the business operation

and investment in Nigeria. The study adopts the Democratic Peace Theory. Secondary data was

mostly used in the study. The study identifies the root causes of insecurity in Nigeria which has

hindered  business  activities  and  some  Security  challenges  confronting  Nigeria  was  also

highlighted.  Security challenges  in any  environment  constitute threat  to lives and  properties,

hindered business activities, and discourage local and foreign investors, which effect and retards

socio-economic  development  of  a  country.  The  study  recommends  effective  formulation  and

implementation of policies capable of tackling the root causes of insecurity in Nigeria, such as

Ethno- religious conflict, weak security system, systemic and political corruption, unemployment, mong others.



Recently,  Nigeria  has  witnessed  an  unprecedented  level  of  insecurity.  This  has  threatened

national security and has prompted huge allocation of the national budget to security (Achumba

and Akpor 2013).  The 1999 Constitution of the Federal Republic of Nigeria specifically states

that  “The security  and  welfare of  the people  shall  be  the  primary  purpose  of  government”.

Unfortunately, government on this constitutional responsibility has failed to provide a secured

and safe environment for lives, properties and the conduct of business and economic activities.

The alarming level of insecurity in Nigeria has increased the crime rate and terrorists attacks in

different parts of the country, leaving unpalatable consequences for the nation’s economy and business  growth.  In  order  to  ameliorate  the  incidence of crime,  the federal  government  has

embarked on criminalization of terrorism by passing the Anti-Terrorism Act in 2011. Despite the

government efforts, the level of insecurity in the country is still high, and a confirmation of this

is the low ranking of Nigeria in the Global Peace Index (GPI, 2012).

Security challenges can be traced to the early years of military rule when large quantities

of arms were imported into the country for the use of the military during and after the Nigerian

civil war, some of which got into the hand of the civilians. Soon after the civil war these arms

were used by civilians and ex-military men for mischievous purposes such as armed robbery,

(Olabanji and  Ese 2014). The 1999 constitutions make provisions for the rights of citizens. The

inability of government to provide a secure and safe environment for lives, properties and the

conduct  of  business  and  economic  activities  has  led  to  resentment  and  disaffection  among

business investors. This has resulted in communal clashes, and religious violence and crime in

different parts of the country that has destroyed lives and properties, disrupted businesses and

economic activities,  and retarded  economic growth and development  in Nigeria.  No business

investors  whether  local  or  foreign  t  will  be  motivated  to  invest  in  an  unsafe  and  insecure

environment.  In a  globalized  world  investors  are  not  only  looking  for  high  returns  on their

investments  but  also  safe  environment  for  their  investments.  Thus  the  alarming  level  of

insecurity in Nigeria  has made  the economy  unattractive to foreign investors  and has slowed

down the level of business activities, and this has impacted negatively on economic growth and

development. Consequently the purpose of this paper is to examine the implications of insecurity

on business activities.


There is high level of insecurity in the country, particularly, in the Northern zone where ‘Boko

Haram’ has become a threat to business activities. No investor will be willing to invest where his

investment is not secured. Many companies and businesses in the Northern part of the country

have stopped operation due to “Boko Haram” scourge. The cost of life and material resources

lost  to  insecurity  in  the  country  since  the  past  few  years  is  unquantifiable.  The  frequent

occurrence  of  bomb  explosions,  orchestrated  by  the  acclaimed  religious  extremists  in  the

northern part of the country, has assumed a worrisome dimension. An estimated number of about

2,000  lives  have  been  lost  to  bomb  explosion  from  2010  till  date.  According  to  security

information  released  by  Crime  Guard,  a  security  monitoring  group,  between  March  and

December 2012, there were a total of 153 successful explosions in the country which claimed

several lives and properties and led to closure of many businesses in the country. As a result of

insecurity in  the country  many businesses and  companies in their  numbers are  closing  down

operations in the  north and relocating to other African countries for  fear of loss of lives and

properties. And the few remaining companies operate on skeletal bases. Insecurity in the country

not  only  affects  foreign  direct  investment  and  business  activities,  it  also  affects  business

confidence as many companies lost confidence in establishing businesses in some parts of the



According  to  Nwanegbo  and Odigbo  (2013),  Olabanji  and  Ese  (2014)  the  divergent approaches  to  the  conceptualization  of  human  security  in  the  theoretical  literature  can  be Journal of Policy and Development Studies Vol. 9, No. 2, February 2015 categorized into  two major strands. One  is a  neo-realist theoretical strand that conceptualizes security as primary  responsibilities of the  state.  The second  strand,  a  postmodernist or plural view, conceptualizes security as the responsibilities of non-state actors and displaces the state as a major provider of security. Proponents of this approach argue that the concept of security goes

beyond a military determination of threats. They are of the view that government should be more

concern with the economic security of individual than the security of the state because the root

causes of insecurity are economic in nature. Security embraces all measures designed to protect

and safeguard the citizenry and the resources of individuals, groups, businesses and the nation

against sabotage or violent occurrence (Ogunleye,et al, 2011).

Some scholars in conceptualizing security placed emphasis on the absence of threats to peace,

stability, national cohesion, political and socio-economic objectives of a country (Igbuzor, 2011;

Oche, 2001; Nwanegbo and Odigbo, 2013, Olabanji and  Ese 2014). Omede (2012) sees security

as a dynamic condition which involves the relative ability of a state to counter threats to its core

values and interests.

The concept of insecurity connotes different meanings such as: absence of safety; danger;

hazard; uncertainty; lack of protection, and lack of safety. Beland (2005), insecurity is “the state

of fear or anxiety stemming from a concrete or alleged lack of protection.” It refers to lack or

inadequate  freedom  from  danger.  Achumba  et  al  (2013)  defines  insecurity  from  two

perspectives. Firstly, insecurity is the state of being open or subject to danger or threat of danger,

where danger is the condition of being susceptible to harm or injury. Secondly insecurity is the

state of being exposed to risk or anxiety, where anxiety is a vague unpleasant emotion that is

experienced  in anticipation  of some misfortune.  These definitions  of insecurity  underscore  a

major point that those affected by insecurity are not only uncertain or unaware of what would

happen but they are also vulnerable to the threats and dangers when they occur.

People  engaged  in  business  activity,  either  directly or  indirectly,  to  satisfy  unlimited

human wants. Therefore, business has become part and parcel of human existence in particular

and global world in general. Mohddeeb (2011) defined business as an economic activity, which

is related  with  continuous and  regular production  and distribution  of goods  and  services  for

satisfying  human  wants.    Henry  (2011)  it  is  human  activity  directed  towards  producing  or

acquiring wealth through buying and selling of goods. Stephenson (2011) sees business as the

regular production or purchase and sales of goods undertaken with the aim of making profit and

acquiring wealth through the satisfaction of human wants.

With the incessant Boko Haram, bombing of the northern part of the country, Nigeria indeed joined those isolated countries that carry that revolting tag of being referred to as terrorist states. Adagba, et al (2012) examined the activities of Boko Haram and listed their attacks from 2009 to 2012. See table 2: Journal of Economics and Sustainable Development ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online) Vol.4, No.2, 2013 85 Table 2: Attacks by Boko Haram Set in Nigeria from 2009 to 2012 S/N Date of Attack State Location of Attack Impact 1 July 27, 2009 Yobe Attack on Potiskum, Yobe State Divisional Police Headquarters. 4 people killed 2 Mar 13, 2010 Plateau Another sect operation in the northern part of Jos, Plateau State. 300 people killed 3 Oct 1, 2010 Abuja Explosions near the Eagle Square, Abuja. 12 people killed and many injured 4 Dec 24, 2010 Plateau A bomb attack, in Barkin Ladi, Jos, plateau State. 8 people killed 5 Dec 31, 2010 Abuja Explosions at Mogadishu Mammy Market, Abuja. 10 people killed 6 Jan 21, 2011 Borno Attack on Borno state Governorship candidate of all Nigeria Peoples Party (ANPP), for the 2011 election, Alhaji Modu Gubio. 7 people killed 7 Mar 2, 2011 Kaduna Boko Haram killed two policemen attached to the residence of Mustapha Sandamu, at Rigasa. 2 people killed 8 Mar 30, 2011 Yobe Bomb planted by Boko Haram in Damaturu, Yobe State, exploded and injured a police officer 1 injured 9 April 8, 2011 Niger Bomb at INEC office in Suleja. 8 people killed 10 Apr 26, 2011 Bauchi Army Barracks in Bauchi bombed. 3 people killed and many injured 11 May 29, 2011 Abuja, Bauchi and Zaria Multiple bombings in different locations in Northern Nigeria 13 people killed and 40 injured 12 June 7, 2011 Borno Series of bomb blasts occurred in Maiduguri. 5 killed and several others injured 13 June 16, 2011 Abuja and Borno Nigerian Police Headquarters, Abuja, Bombed by a suspected suicide bomber. A bomb blast also occurred at Damboa town, Maiduguri. 7 killed and many vehicles damaged 14 June 20, 2011 Katsina Boko Haram stormed Kankara Police station in Kastina state. 7 policemen killed and 2 security men 15 July 9, 2011 Borno and Niger A clash between Boko Haram and the military in Maiduguri, Borno State, also in Suleja, Niger state, a bomb was targeted at a church. 35 killed and many injured 16 July 12, 2011 Borno Boko Haram threw an explosive device on a moving military patrol vehicle. 5 people killed 17 July 15, 2011 Borno Explosion in Maiduguri. 5 people injured 18 July 25, 2011 Maiduguri Bomb explosion near the palace of traditional ruler in Maiduguri. 8 people killed 19 Aug 26, 2011 Abuja A Suicide Bomber Drove Into The United Nations building in Abuja. 25 people killed and 60 injured. 20 Sep 12, 2011 Bauchi A bomb attack on a police station in Misau. 7 people killed Journal of Economics and Sustainable Development ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online) Vol.4, No.2, 2013 86 Source: Adapted from Adagba, Ugwu and Eme (2012:86-89) With these indices, we can say that the insecurity situation in Nigeria from 2009 is unprecedented. In addition to the usual crimes, the coordinated attacks from the Boko Haram sect in the northern part of the country, besides making life miserable for Nigerians, has affected so many businesses operating in that region. The bomb explosions initiated by this group have been on the increase leading to enormous loss of life and property and a general atmosphere of fear and social tension in the country. Statistics have also indicated that in the last one year, there is a significant decline in peace as Nigeria dropped four places to 146th out of 158 countries in the 2012 Global Peace Ranking. In fact, Nigeria has been identified as the least peaceful country in West Africa (GPI, 2012). According to Igbuzor (2011) West Africa is among the most unsecured region in the world and Table 3 below indicates that Nigeria is the most unsecured country in the region as it has consistently ranked high among the countries in West Africa. On the contrary, Ghana a neighbouring country to Nigeria has consistently ranked low and is taken as the most peaceful country in the region. 21 Sep 17, 2011 Borno Brother in-law of Mohammed Yusuf, the slain leader of Boko Haram, Babakura Fugu, shot dead in front of his house in Maiduguri by two members of the sect two days after he was visited by former President Olusegun Obasanjo. 1 person killed 22 Oct 3, 2011 Borno Book Haram attacked Baga Market in Maiduguri. 3 people killed 23 Nov 4, 2011 Yobe Attack by Boko Haram in Damaturu, YobeState. 150 people killed 24 Nov 27, 2011 Yobe Attacks in Geidam. 7 people killed 25 Dec 24, 2011 Plateau Bombing in Jos. 80 people killed 26 Dec 25, 2011 Niger Christmas Day bombing in Madalla. 50 people killed 27 Jan 6, 2012 Adamawa Christ Apostolic Church was attacked and Igbo people were also killed in Mubi in the same state. 37 people killed 28 Jan 20, 2012 Kano Multiple attacks in Kano 250 people killed 29 Jan 26, 2012 Kano The Sabon Gari of Kano State witnessed another explosion, which caused another pandemonium in the state. Many injured and some luxury buses damaged. 30 Feb 7, 2012 Kano A bomb blast in Kano market and military barracks 5 people killed 31 April 8, 2012 Kaduna Easter Day Church bombing 38 people killed 32 Jun 17, 2012 Kaduna Multiple attacks on churches 12 people killed and 80 injured 33 Aug 7, 2012 Kogi Deeper Life Church 19 people killed Journal of Economics and Sustainable Development ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online) Vol.4, No.2, 2013 87 Table 3: Nigeria and other West African Countries on the Global Peace Index Ranking S/N Country GPI Score 2009 GPI Rank 2009 GPI Score 2010 GPI Rank 2010 GPI Score 2011 GPI Rank 2011 GPI Score 2012 GPI Rank 2012 1 Ghana 1.76 52 1.78 48 1.75 42 1.81 50 2 Sierra Leone – – 1.82 53 1.90 61 1.86 52 3 Burkina Faso 1.91 71 1.85 57 1.83 51 1.88 56 4 Gambia – – 1.91 62 1.96 74 5 Senegal 1.98 80 2.03 79 2.05 77 1.99 78 6 Guinea – – 2.13 92 2.07 92 7 Guinea Bissau – – – – – – 2.11 95 8 Liberia – – 2.15 99 2.16 97 2.13 101 9 Mali 2.09 96 2.24 109 2.19 100 2.13 102 10 Benin – – – – – – 2.23 114 11 Niger – – – – 2.36 119 2.24 116 12 Mauritania 2.48 124 2.39 123 2.43 130 2.30 125 13 Cot d’lvoire 2.34 117 2.30 118 2.42 128 2.42 134 14 Nigeria 2.60 129 2.76 137 2.74 142 2.80 146 Source: Compiled from Global Peace Index (2009-2012) 5. Implications of the Nigeria Insecurity situation for Business Activities The implications of the Nigeria insecurity situation for organizations’ business activities cannot be overemphasized. In this paper, we contend that when there is wide spread insecurity, it could affect business investment, the entire business organization or some aspects of its operations which include production, marketing, finance and human resource (H/R). This is indicated in the figure below: Journal of Economics and Sustainable Development ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online) Vol.4, No.2, 2013 88 The implication of the insecurity situation in Nigeria for business activities can be viewed from two broad perspectives, viz, the perspective of potential business investment and the perspective of existing business enterprise. 5.1 Potential Business Investment Insecurity discourages investment as it makes investment unattractive to business people. This is because it increases the cost of doing business either through direct loss of goods and properties or the cost of taking precautions against business risks and uncertainty. These costs could have a negative impact on business development and progress. The thick arrow connecting the insecurity environment and business investment means that insecurity can be a huge blockade to business investment. Ujah and Eboh (2006) reported a study by World Bank on investment climate in nine African countries in which it was found that 29% of business operators in Africa and 36% in Nigeria perceived insecurity as a major constraint on investment. This situation has the damaging consequence of giving signal to the international community that Nigeria is not a safe and secure place and as such not suitable for investment and business activities. In that case, foreign firms and entrepreneurs would decline to invest and this is particularly important in view of the efforts being made to create the desired atmosphere to attract foreign direct investment. So, it is a strong disincentive to business investment as it scares away potential investors. This is because such environments or economies are considered high risk zones due to the high level of uncertainty about the safety of investment and lives of the managers and their staff. Evidently, there has been a decline of foreign direct investment in Nigeria. Foreign Direct Investment (FDI) is usually investment targeted at building new factories or investing in actual production activities which create jobs. Foreign investors in the Nigerian economy are moving away from starting new companies or production plants and are buying up shares of quoted companies instead. Figures from the 2010 Central Bank of Nigeria (CBN) annual report show a steep 78.1 percent decline in foreign direct investment while also showing a significant 87.2 percent increase in portfolio investment into the Nigerian economy to take advantage of the depression in the Nigeria stock market due to low economic activities. This can largely be attributed to the state of insecurity in the country besides the issue of lack of regular electricity supply, which itself is a source of economic insecurity in the country. 5.2. Existing Business Enterprise The Nigeria insecurity situation can, and in many cases, actually halted business operations during the periods of violence and also caused the outright closure of many enterprises especially in the areas or zones where Journal of Economics and Sustainable Development ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online) Vol.4, No.2, 2013 89 incidences of insecurity is rife and are on daily occurrence, in a bid to protect lives of operators and business property. Generally, if there is no peace and security, it is extremely difficult for businesses to survive. Ordinary citizens having small and medium scale businesses cannot open shops for business transactions. Insecurity everywhere is a risk factor which business owners and managers dread and wish to avoid by relocating their businesses elsewhere. In the case of Nigeria, there is also evidence of some businessmen and manufacturing companies having to relocate particularly from the North in recent time, to other peaceful parts of the country (Nwagbosa (2012)). Non indigenes especially Igbos and Yorubas have to return to their home states before they are killed by Boko Haram (Suleiman, 2012). In addition, some firms may shift their operations to other countries like Ghana which is deemed to be more peaceful. Apart from outright closure of a business enterprise, an existing business can also be affected in the four functional areas of business shown in the model (figure 2) above. These include production, marketing, finance and human resource (H/R). 5.2.1 Production Business enterprises rely on availability and regular supply of raw materials for production. Security problems can cut off supply of such raw materials. When a firm is unable to access raw materials needed for production due to insecurity in the source, it can disrupt production activities. There is no doubt that businesses whose source of raw materials are in the North would be faced with that threat, if the insecurity situation becomes worse. 5.2.2 Marketing It is not only that a business enterprise must get raw materials for production, it also must dispose off their output. Insecurity limits market availability. In addition to the fact that areas pruned to insecurity will not be attractive for marketers from outside, there will be restrictions on mobility. Besides, Migration of people from the areas to other parts of the country or outside as a result of insecurity will affect the customer base of businesses operating in the environment where the insecurity exists. Nigeria is currently experiencing this situation in many parts of the country especially in the terrorist fields of the northern part of the Nigeria. We can also recalled that this situation had occurred in the Niger Delta particularly in Warri, Delta state during the periods of inter ethnic clashes among three ethnic groups, Ijaw, Itsekiri and Urhobo , in Warri. 5.2.3 Finance Insecurity also increases security spending by business organizations. This emanates from the cost of taking precautions and payment for private security services. From general observation, most business organizations operating in Nigeria maintain security personnel as well as security infrastructure in order to ensure the security of their properties and the lives of their staff and customers. It could also result to the loss of capital through burning of business buildings and properties. Beyond these, it also limits sources of fund to the business. 5.2.4 Human Resource When there is a high level of insecurity in a particular area or region, there will be migration of people which could lead to a dearth in skilled labour. Insecurity affects the general human security of the people as the situation promotes fear, while at the same time limiting the peoples’ ability to work effectively. There are also circumstances when employees of a business enterprise become victims of attack and the firm losses its experienced staff through death or injury. As such, workers resign to run away from such areas and fresh people do not want to go there for employment. The implication is manpower shortage for the business which ultimately affects the success and survival of the business. This exerts pressure on the business for manpower at any cost.Due to the impact of insecurity on businesses, we support the position of Ujah and Eboh (2006) that the government must ensure the availability of public security at all times. This is crucial because if businesses fold up and investors are no longer forthcoming, then the future is bleak. 6. Implications of the Nigeria Insecurity situation for Sustainable Development in Nigeria Insecurity has been identified as one of the obstacles to sustainable development (Call, 2000, Ujah and Eboh, 2006, Igbuzor, 2011). The term sustainable development was popularized in a report by the Brundtland Commission published by the World Commission on Environment and Development in 1987. In the report, sustainable development was defined as “development which meets the needs of the present without compromising the ability of future generations to meet their own needs (UN, 2010). Since then, the concept has been variously conceived in terms of vision expression, value change, moral development, social reorganization or transformational process toward a desired future or better world (Gladwin et al, 1995). In their view, development is unsustainable when an enlargement of human choice excludes, disconnects, promotes inequity, Journal of Economics and Sustainable Development ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online) Vol.4, No.2, 2013 90 reflects imprudence or raises insecurity. Development is the primary goal of every well meaning government and it is essentially dependent on the level of economic activities in a country; the level of economic activities is in turn enhanced by peaceful coexistence by people. It is people who interact to carry out economic activities through their businesses. Businesses are the vehicle for economic activities that would lead to national economic development. It therefore follows that businesses play a great role in the process of development and such role can be hampered in the absence of adequate security as we now find in Nigeria. The aims of sustainable development are to ensure a safe and healthy environment for all and sundry and to maximize simultaneously national goals, organizational goals and individual goals that can persist over generations. As noted by Akpobibibo (2003) the principle behind sustainability is to make life meaningful to all. Therefore, security is crucial for sustainable development. In the absence of security, economic growth and development cannot be sustained as it destroys economic, human and social capital. Under conditions of peace and security, people and government can direct their efforts and resources towards improving human life. Security and development are also related in the sense that being a public good, the imperative to maintain security competes with other public goods such as education, health and infrastructure for public funds. Expenditures on security are therefore an essential component of the development process. For instance, the use of resources to strengthen a country’s security system could have been useful in other relevant areas. Insecurity therefore, becomes a drain on local and national resources at the expense of development and peoples’ well being thereby, having adverse consequences on economic growth and development (Nwagboso, 2012, Call, 2000). Thus, in the absence of any real threats to security, expenditures on security can be reduced significantly, allowing national and local governments to channel more resources to other public goods to improve the quality of life of the people. In addition, insecurity destroys existing infrastructure and also prevent an environment for the development of further infrastructure; and a safe environment for economic activities by individuals to give them economic empowerment that will enable households not only to cater for their present generations but also to provide for future generations. The importance and implications of the security situation in Nigeria have been emphasized by a number of world leaders, both in words and in action, and the need for the Nigerian government to brace up to the challenge. For instance, the former president of Ghana, John Kufour stated that the bane of Nigeria development is insecurity (Kufour, 2012). He observed that insecurity situation in Nigeria is costing Nigeria its Journal of Economics and Sustainable Development ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online) Vol.4, No.2, 2013 91 leadership role in Africa in terms of development. As a result, it is unable to claim its rightful position as ‘giant of Africa’ from which other African nations could benefit or copy as a role model and that “if there is no security, there is no liberty, and if there is no liberty, life is not meaningful and society reverts back to the law of the jungle and man’s primary objective of forming a state is defeated”. To drive further the relationship between the security situation in Nigeria and her development, the U.S. government through its ambassador to Nigeria, Eunice Reddick has also acknowledge the insecurity situation in Nigeria as the major factor hindering Nigeria’s development efforts. As she put it, “Security is a prerequisite for successful development in Nigeria”. She observed that prevalent pervasive insecurity in the country, threatens to erode the country’s economic progress (Oluwarotimi, 2012). Consequently, more sustainable development initiatives regarding insecurity are needed in Nigeria and this is imperative, since security is central to development, and the national transformation agenda of the current administration may not be achieved if there is no solution to the menace of insecurity ravaging the country. 7. Solution to Insecurity in Nigeria Having considered and understood the implications of insecurity in Nigeria for business operations and sustainable development, the question that arises before every one of us as Nigerians, is what to do to overcome the challenge? What can we do and what shall we do to put a stop to this menace of insecurity in our land? How can the Nigerian nation and economy be made safe for all of us? The answers to these questions lie in our hands as Nigerians in whatever capacity. In general, however, a number of methods or approaches have been prescribed as solution to insecurity, by different people as citizens both within the country and outside, and as foreign observers. The solution array in both short term and long term perspectives, commonly recommend and emphasize a strong fight against and removal of the sources and causative factors of insecurity. It is theorized that once these factors are eliminated, dissatisfaction and disaffection will be reduced and therefore the tendency for violence and criminal behavior will naturally be reduced, because both economic security and social security will have been enhanced. Essentially, all of the solution approaches revolve round maximizing societal welfare. The various factors which have been mentioned in the array of solutions as factors to be dealt with include, inter-alia: 7.1 Leadership development It is viewed that Nigeria will have to develop visionary leadership, a leadership that is detribalized such that it has at leadership positions only people who are able to inculcate in their people or followers, the ideal of common citizenship as the transcendent factor among all Nigerians, no matter the tribe, gender, religion, economic and social status. In other words, it is imperative that we have leaders who “ would not be limited to championing the causes of their home state, tribe or religious groups, but rather focused on deeds and pronouncements which convincingly and positively impact on the entire citizenry of the federal republic” (Kufour, 2012). The argument for this is that such leaders “will help to mould the contending ethnic and religious groups into harmony and help to remove the perceived mutual distrust among them. The process of developing visionary leadership can be challenging, but however, it can be overcome as Kufour (2012) suggests, “by using institutions of the Nigerian constitution as a nursery ground to produce leaders with national outlook and with a missionary zeal to transform the nation”. 7.2 Good governance According to Oluwarotimi (2012), good governance is the panacea for the insecurity challenge in Nigeria. She states that the war against insecurity would be won only by raising governance standards that is, cultivating the culture of good governance where the government is responsible and accountable to the people. In her view, security engagement cannot be separated from good governance. Many others have also linked security to governance system. The general view is that peace and security is determined by good governance. However, as Oluwa (2012) has pointed out, good governance is a function of effective, visionary, transparent, trustworthy and credible political leadership whose driving force is an improvement in the collective wellbeing of the citizens through well conceived, effectively implemented economic policies and human development programmes. The underlying principle of good governance is the focus on people as the ultimate objective of governance. 7.3 Socio-economic development This factor is strongly considered as the major key to peace and security in Nigeria. In the view of Kufour (2012), the challenge in solving the insecurity problem in Nigeria is to accelerate the pace of development. Development in this context consists of creating an economy with relevant social, economic and physical infrastructure for business operations and industrial growth, to provide gainful employment, high level education facilities and medical care for the people. Journal of Economics and Sustainable Development ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online) Vol.4, No.2, 2013 92 7.4 Elimination of Corruption and entrenchment of social justice Corruption is viewed by everybody as the cog in the Nigerian wheel of progress and development. It is the bane of our society. It is both a social and economic monster. It is the cause of inequality and unequitable distribution of the nations’ wealth among its citizens, a situation that is the root cause of disaffection among Nigerians. It is theorized by many that fighting corruption and winning the war will bring about an egalitarian society, where fairness, social justice and equal right for all will reign supreme; where rights will not be privileges for some people, and for others, privileges are their rights: where every Nigerian will be treated and accorded position not based on tribe and sect, but on merit defined in terms of the content of his character, mental capacity and ability to deliver; where there will be no discrimination. 7.5 Radical change in values: A paradigm shift of values from the current order has also been suggested and emphasized by many, considering the role of values in governance system, leadership developmental goals, and behaviour towards corruption. It is argued that except our values are right, we cannot get it right as a nation in all of the areas that we have itemized, and except we get it right in those areas, the people will continue to suffer deprivation and injustice which will cause dissatisfaction and disaffection and consequently create an insecure environment. Thus, radical change in value system is paramount and imperative in restoring security to Nigeria. This is what the American president, Obama has called “a return to the truth.” 7.6 Development of a more balanced security strategy to counter violent crimes and local terrorism (Boko Haram) This is one of the views of Reddick (Oluwarotimi, 2012). By this, she must have meant a strategy that is all inclusive and involving a combination of methods that would not only break their communication and interactive network , but also disarm them of resources by tracking their information inflow and resource mobility through higher technology that can also help to locate their base, their sponsors and intelligence power houses and systems (intelligence sources), identifying and isolating them for easy pick. All the solution measures presented above are summarized in the view of Taekyoon (2009), who from a broader context of insecurity in developing countries contends that the solution to insecurity in developing countries is the maximization of governability. In his view, maximizing governability is the key to achieving security. To maximize governability, he points out three conditions as fundamental: (i) establishment of democratic governance (ii) promotion of economic development, and (iii) enhancement of institutional capacity to strengthen the two preceding conditions. He further explained that the establishment and consolidation of democratic governance is a necessary condition to reduce the incidence of ethnic and religious turmoil in developing world societies. We say here that this is very true for Nigeria. This is because, once democratic institutions are established, they contribute to slowing down ethnic conflicts by filtering them through democratic processes to find a way of narrowing widened gaps between different ethnic groups. The promotion of economic development also enhances governability. The establishment of developmental projects tailored to the needs of the people would improve societal welfare and reduce the extent of social and economic insecurity which consequently would reduce social conflicts and aggression. Once people’s needs are met, they become naturally less agitated and confrontational, and the tendency to want to use illicit and criminal means to ensure their survival or try to force government to behave in certain ways or make certain decisions, would be reduced. It is instructive to note that these two conditions or measures, “democratic governance and economic development, link the remote and the immediate sources of insecurity in Nigeria. However, these two conditions can get on the right track only under the condition that the institutional capacity are made very strong, that is, “they must be accompanied with the rich soil of institutional apparatuses” (Taekyoon, 2009). The poverty of transparent and sound institutions to deal with security threats is directly related to institutional failures in enhancing the effectiveness of security solution measures by either democratic reforms or development projects. One point to note is that, in Nigeria, security management is treated with a lot of politics and politicking. This makes its success depend upon the degree of institutional control over politics. Therefore, it is necessary to make institutional capacity strong and efficient, not only as the fundamental foundation for promoting democratic reforms and economic developments in the country but also as the core of security management. We agree with the proposers of all these prescriptions and joined our thought with others to recommend that the integrative efforts to diminish the state of insecurity in Nigeria should begin with the reinforcement of institutional infrastructure where democratic governance and economic growth projects can Journal of Economics and Sustainable Development ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online) Vol.4, No.2, 2013 93 then be positively engrafted into the security management process. However, we note that majority of these solution methods are long term oriented. There is also the need for a solution set that urgently addresses the problem and which has an immediate impact on the situation, in view of the revelation from the analysis of the dimension and levels of insecurity in the country, in the preceding sections of this paper, and the imperative to stem the situation, considering its implications for business operations and economic development. We therefore extend the solution approach by proposing a security management approach that accommodates both long term solutions and immediate ways to address the problem right now to reduce the pressure; and besides, an approach that everyone has a role to play in ensuring that security is restored. This approach, we have called “Security (or Insecurity) strategic management approach” with structural components as shown in figure 3. 8. The Security Strategic Management Approach and Models This approach consists of a combination of two models, viz, the two way approach model, and the composite approach model. The two-way approach model aims at combating the creators and perpetuators of situations of insecurity, and simultaneously addressing and removing the causes or sources of dissatisfaction or discontentment which cause security breaches. The composite approach model aims at involving all stakeholders, both in public and private capacity – government, communities, business organizations, civil society, religious groups and individuals – to supply resources, expertise and information that are required to ensure a safe environment. 8.1 The two-way approach model This model is two part model. One part is to remove the factors which cause people to engage in acts of insecurity, and the other part is to combat the perpetuators of insecurity situation. The first part considers and entrenches all of the solution methods from the various views presented above, under solution to insecurity in Nigeria. The second part is to combat the criminals both with the long arm of the law and the force of arms. This is meant to stop or prevent criminals from creating and perpetuating insecurity. It involves being prepared at all times and being proactive, and pursuing them wherever they are. The objective is to protect innocent citizens from harm. A major strategy in this regard is to identify and map out black spots on physical insecurity. This requires vigilance on our environment on the part of security agencies, particularly with terrorist attacks of the Boko Haram. We refer to black spots as such locations and areas where the sect can take advantage of political and economic vulnerabilities to safeguard their operations and attract recruits. They include those areas which are politically volatile, and with a large mass of uneducated and abjectly poor population that can easily be recruited as terrorist operatives; areas in which people have high level of attachment to opinion leaders, and the leaders-followers ties are very strong; towns and states on border lines with other countries, and which have cultural and language links with other societies outside the country, which allow for a network of transnational criminals and terrorists. Such black spots facilitate smuggling of illicit weapons and personnel through the borders without being detected. Black spots help terrorists and criminals in their insecurity flows, that is, movements of assets, people, services or strategic/sensitive know-how. Security agencies, therefore, should develop and adopt a scientific means to detect, map, and analyze such black spots in the country, and firmly understand their modus operandi in exporting insecurity into Nigeria. Being able to scan, pinpoint and monitor black spots on a continuous basis offers the possibility of tracking the movement of criminals and terrorists, their financial assets and illegal weapons, and their skills and expertise. Such a capability is critical to intelligence gathering and necessary precondition for threat interception and the prevention of the escalation of insecurity. 8.2 The Composite approach model This model contrast with the traditional assumption that national security is solely the responsibility of government. While we agree with the view that security of lives and property is a primary responsibility of government (Ogbeche, 2012), we hold the view however, that the insecurity challenge in Nigeria is too enormous to be left for government alone. There is need for other stakeholders to be actively involved in ameliorating insecurity in the country. This is the basis for this model, as illustrated in the figure below: Journal of Economics and Sustainable Development ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online) Vol.4, No.2, 2013 94 The security management model (Figure 3) above indicates all the stakeholders needed to fight against insecurity in order to achieve enduring security in the country. When these stakeholders collaborate to tackle the insecurity challenge in Nigeria, the business environment will be safe for business investment and operation. As it is known, factors in the business environment enhance or hinder a firm’s ability to operate effectively and efficiently (Dionco-Adetayo and Adetayo, 2003). When the business environment is safe, the businesses will be sustained and sustainable development which is the desire of every nation will be sure. It is important to point out that insecurity is not a problem that is unique to Nigeria. The United States of America, the United Kingdom and many other countries, face the challenges of insecurity within their borders on a daily basis. The difference between them and our country is how they manage the threats, how knowledgeable and prepared they are, how they deploy resources against the threats, how effective they are, and how patriotic and united the people are against threats of insecurity. In the United Kingdom, insecurity is managed through a strategy which is organized around four strategic workstreams each comprising a number of key objectives of pursue, prevent, protect and prepare (CONTEST, 2011). The pursue strategy is meant to stop attacks. This means detecting and investigating threats at the earliest possible stage and disrupting crime activity before it is carried out while Prevent strategy focuses on stopping people from becoming criminals or supporting crime. The aim is to strengthen people so that they will not be criminals. Protect strategy is meant to protect people from criminals while the Prepare strategy helps to mitigate the impact of a crime attack and also to be ready to deal with an ongoing crime attack. This includes attempt to bring a criminal attack to an end and to increase resilience to recover from its aftermath as an effective and efficient response will save lives, reduce harm and aid recovery. An analysis of the strategies indicates that the priority of UK is to stop criminal activities. However, when it can not be stopped, prosecution is effectual to people for criminal offences. For effective implementation of the strategies, measures are put in place to ensure the accountability of the strategies and progress monitoring. The security, intelligence agencies and the police are adequately equipped to disrupt crime related activities. CONTEST (2011) stated that the police, security and intelligence agencies work tirelessly to keep Britain safe. They also recognized that, the growing use of inexpensive but sophisticated communications technology has made the planning of attacks easier and more secure and that it allows for instant communication between geographically disparate groups via email, web fora, social networking sites or by using the internet to make voice calls. Therefore, steps have been taken to keep pace with technological changes by making the internet a more hostile environment for criminals. They have tried to identify, investigate and disrupt criminal use of the internet; make it more difficult for them to exploit the internet for radicalisation and recruitment as well as counter-terrorist propaganda. They have also put in place enhanced communications and information Journal of Economics and Sustainable Development ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online) Vol.4, No.2, 2013 95 sharing for criminal attacks. These are organized by coordinators, supported by Prevent Engagement Officers (PEOs) who connect the police, community police and neighbourhood police. They are instrumental in developing community contacts and an understanding of community issues. Their work helps to identify potential threats in the communities and generates prevention projects and information sharing with prevention partners to support strategic objectives. There is the challenge therefore to rethink and improve on the policies and institutional means of dealing with security concerns arising in the country. The roles of the stakeholders in the security management model are discussed below: 8.2.1 The Role of the Government To overcome insecurity there is need for intelligence gathering and surveillance so that law enforcement agents could be proactive and reasonably predict potential crime with near perfect accuracy rather than being reactive. As noted by Adagba, et al (2012) the menace of insecurity no doubt calls for a new approach that will be founded on credible intelligence gathering”. Government must not only continue to engage the security personnel, it must, more than ever before, recognise the need to devote more attention to security intelligence, capacity building to meet the global best practice standard and acquisition of modern technology. Although, the Nigerian government has resolved to adopt the use of Computer-based Closed Circuit Television cameras in public places especially in Abuja to monitor and record events that take place in a particular location, (Ogunleye, et al, 2011) have argued that for it to be effective, government must ensure that the scheme is well managed, the cameras should be recording, with good quality images, and any incident caught on camera should be followed up by the police or other appropriate authority. Computer-based Closed Circuit Television cameras are cameras used to monitor and record images of what takes place in specific locations in real time. The images collected are sent to a monitor and recorded on video tape or as digital information. It is a surveillance technique that aims to prevent crime by increasing the perceived risks of potential offenders in engaging in criminal acts. They can be very effective in maintaining security through incident reduction or post-incident analysis, to act as a deterrent or to provide valuable support to security. There is also the need to modernize the security agencies with training, intelligence sharing, advanced technology, logistics, motivation and change of orientation. This effort will enhance the operational capabilities of the Nigeria security agencies by identifying avenues that would enable them respond appropriately to internal security challenges and other threats. In addition, there should be a complete overhaul of the security institutions in the country to reflect international standards of best practices so as to pre-empt these security breaches. In particular, the failure of the intelligence services to contain the recurring security breaches. The consistent pattern of post damage responses to national security has been attributed to the dearth of pre-emptive intelligence among security personnel. There should be an institutionalized approach rather than the episodic and reactive response adopted by the government at the aftermath of attacks. In addition, Government at all level should not compromise in enforcing the law. Cases of corruption are not meant to be compromised at all, let alone adjourning them endlessly. The judiciary ought to have, at this stage in our development, evolved time scales for cases. There ought to have been a time to determine a case; time to close that case; and time to deliver judgement and pass sentences. In Nigeria, cases that bother on corruption and insecurity have most often been compromised thus, the law is no longer acting as a deterrent. Our law enforcement agencies must therefore be incorruptible and fair. To ensure all this, there must be incentives, good conditions of service and social security. Finally, dealing alone with the issues mentioned above will not appraise the root causes of insecurity. Policies that focus solely on single governmental agencies, such as security agencies or enactment of laws are unlikely to succeed. Instead, a coordinated preventive measure is necessary in addition to military strategies and judicial institutions. Akpobibibo (2003) posited that there is a need to reorder priorities and to seek better understanding of the underlying causes and dynamics of the insecurity in the country with the aim of providing effective conflict prevention and management strategies. The formulation and effective implementation of policies and programmes capable of addressing the root causes of insecurity in Nigeria are crucial, especially with regard to poverty; unemployment, environmental degradation, injustice, corruption, porous borders and small arms proliferation. Therefore, efforts to tackle insecurity can only be effective if there is a robust combination of legislative and judicial interventions with government reforms that address some of the acute human security challenges confronting a vast majority of the population as indicated in the first part of the two-way approach model. 8.2.2 The Role of Business Organizations To be successful overtime, a business must be in tune with its environment. Environmental changes have significant impact on business operations and sustainability. As a result of the state of insecurity in the country Journal of Economics and Sustainable Development ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online) Vol.4, No.2, 2013 96 today, we emphasize that apart from the government, businesses also have a role to play. According to Elumelu (2004) business enterprises can contribute towards the enhancement of security and safety in the country through long-term strategy of creating and providing jobs especially for the unemployed youths and cooperating with regulatory authorities and security agencies in the fight against crime. Apart from that, business organizations must be socially responsible. When a firm is socially responsible and does not exploit the community where it is operating, it may not experience some of the elements in the insecurity environment. The change that the society expects of businesses and what management believes is its role in society must be given priority by management. As such, businesses should not pursue profit only but should also consider social needs. It includes both ethical and discretionary responsibilities (Dionco-Adetayo and Adetayo, 2003). Also, problems of pollution, product safety, job discrimination should be taken seriously. Multi-national companies and large businesses can also assist the government in sponsoring the provision of traffic lights on major streets in our cities and the electrification of towns and villages especially where they are operating. In addition, business owners, managers and employees should be security conscious and should deliver security through their everyday actions and decisions 8.2.3 The Role of Civil Society Civil society is the arena outside of the family, the state, and the market where people associate to advance common interests. It is the aggregate of non-governmental organizations and institutions that manifest interests and will of citizens or individuals and organizations in a society which are independent of the government. As a result of the inability of government to provide adequate security, Ebohon, and Ifeadi, (2012) are of the opinion that Nigeria should move from a state-centric to a human security paradigm, move from an elite centered to a people centered security management approach and involve civil society in the state security project. There is need for civil society to advance the importance of security in Nigeria. With the active involvement of civil society in security management, we should have less violence, human rights abuses and social injustice. One of the roles of civil society is to convince other stakeholders that action is better than inaction and that insecurity does not have to be accepted as a necessary evil. They have to play the roles of critic, catalyst and advocate of those interests. It is also essential to raise public awareness, to awaken society to the disastrous effects of insecurity and to get across the message that fighting it is possible. In many countries, civil society is the watchdog and the vanguard to warrant that other stakeholders respect their boundaries. They also play a major in the area of raising public awareness as well as in lobbying for concrete change or in helping to initiate and carry out a process of reforming national integrity. 8.2.4 The Role of Religious Groups The two main religious groups in Nigeria have a major role to play in ensuring security in the country. The teachings of religious groups are one of the bases of value development in the contemporary world. The role of values in human security cannot be over emphasized. It is a known fact that values govern behaviour. Where social values and norms concerning fundamental human right in both public and private places have been distorted and violated, the people and government tend to live in an atmosphere of instability and insecurity (Clifford, 2009). If every religious group can tolerate the other, then religious crisis which has been a problem in this country will be abated. In addition, worship centres should not be used as avenue for instigating members to be violent or to engage in activities that can affect the peace of the country. 8.2.5 The Role of Communities It is important to note that security management can be significantly aided by the cooperation of local communities. Depending on our perceptions and sincere feelings as regards our collective responsibilities towards lasting peace in Nigeria, communities should strive to live peacefully with other communities. They should also be vigilant of strangers in their localities to ensure that criminals do not have easy access to their communities. 8.2.6 The Role of Individuals Security should be seen as everybody’s business. As individuals we need to cultivate the habit of security consciousness and to report any security situation to the appropriate authority (not only the police) immediately. Every individual must evince a high level of security awareness and alertness. This is because individuals understand their communities better and any report of suspicious behaviour or activity could lead to actionable intelligence leading to disruption of attacks. Through the early detection of impending conflicts and its prevention, it will help to provide a safe and enabling environment for the people to operate in, and for economic development to thrive. Journal of Economics and Sustainable Development ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online) Vol.4, No.2, 2013 97 9. Conclusion Security just like other elements in the business environment enhances and optimizes business activities but insecurity hinders these activities and so it constitutes a threat to business organizations. There is a strong skepticism that if the level of insecurity in our country is not scaled down, our vision to be among the best 20 countries of the world may be aborted.”The approach towards curbing this menace has been to respond when the crime has been committed and the harm has been done. This paper emphasizes a change in attitude and approach by being proactive. We must strive to get to a level were crimes will be nipped in the bud before they are perpetuated. Therefore, the government, civil society groups, business organization and individuals must fight insecurity so as to create an enabling environment where business organizations will feel free and secured to achieve their full potentials and the country will itself be safe to achieve sustainable development. 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