The effects of terrorism on Nigeria's economy

Posted by Chidinma on Tuesday March 3, 2015 at 10:36:24:

For the past six years or so, North Eastern Nigeria has been under serious terrorist attack from a barbaric violent sect known as Boko haram that claims to promote Islam although many Islamic scholars and bodies in Nigeria have since condemned the group. However, their activities which seems to be financed by foreign elements has led to thousands of people losing their lives and livelihoods, tens of thousands had been rendered homeless while properties worth billions of Naira has been destroyed as a result of the Boko haram attacks, while more attacks are still going on daily. The terrorism has also affected Nigeria’s economy negatively.

Let’s look at two negative effects terrorism on Nigeria’s economy:

1. Reduced Nigeria’s Gross Domestic Product: the Gross Domestic Product (GDP) of a country is the sum total of all the goods and services produced in the country within a specific period of time usually one year, by both citizens and foreigners in the country alike; Nigeria’s GDP especially from the Northern part of the country have drastically reduced over the years due to the effects of boko haram sect. People no longer invest in productive activities in the north as a result of fear; while businesses that would have contributed to the GDP of the country are being destroyed with bomb blast in various locations up north.

2. Low Foreign Investments: Investors from other countries who are willing to invest in Nigeria are afraid to come set up their businesses here due to fear of the activities of the boko haram sect that have also included Nigeria in the list of terrorist countries; rather They prefer to invest in neighbouring countries like Ghana and this also have affected the economy negatively.