CEM REPORT, FINANCE | Insecurity ranging from terrorism, crude oil theft, kidnapping and other forms of insecurity have continued to plague Nigeria. With billions spent and several intervention, insecurity seem not to abate but rather gather momentum.
Recent data from the Central Bank of Nigeria (CBN) consolidated financial statements reveals that the nation spent ₦125.3 billion on security in 2022.
The cumulative expenditure within eight years – 2014 and 2022, stood at ₦507 billion in intervention by the CBN on national security, armed forces, and state security, among others.
“Intervention activities expenses represent expenses carried out by CBN in connection with national security, federal government, state securities, armed forces, and financial sector capacity building where there is an important need for the fund.
“All payments made in relation to intervention activities embarked on by the Group are expensed as incurred. However, payments made by the Group in relation to intervention activities on behalf of the Federal Government are recognised as receivables and are fully impaired after 12 months if the amount is not received from the Federal Government.”
Several reports have said that Nigeria has one of the biggest security expenditures in Africa yet insecurity continues to dissuade investors into the nation’s economy.
Further breakdown showed the CBN spent N45.4 billion in 2021; N28.6 billion in 2020; N21.4 billion in 2019; N44.9 billion in 2018; N19.3 billion in 2017 and N38.5 billion in 2016.
According to the Global Terrorism Index, Nigeria lost $40.6 billion worth of investments to insecurity in 2020.
A United Nations Development Programme report released in 2019 details that Nigeria had the highest security spending at $78.43 billion in 2017, followed by Morocco at $42.52 billion.
However, Morocco experienced lowered security threats within the period with less than 2,000 fatalities, while Nigeria had the highest in the African region with more than 180,000 fatalities.