State of the Nation:
FG urged to step up Economic Diversification, enhance intelligence at Peoples Forum summit
By Babatunde Aremu
The Federal Government has been advised to step up ongoing Economic Diversification programmes and introduce Agricultural reforms so as to address the current security and Economic challenges facing the country .
Speakers at the 15th Business summit and Award ceremony organised by Peoples Forum magazine and online gave this advice on Saturday in lagos
First to speak on the theme of the Business summit: National security and Economic Growth is Transportation expert and politician , Dr. Segun Musa:
Dr. Musa expressed concerns that With inflation rates hovering around 22%
as at mid-2023 and the persistent insecurity in several regions, the Economic and security issues facing the country have become intricately linked, feeding into one another in a vicious cycle.
“This presentation
therefore explores actionable solutions to mitigate these interrelated crises.
The Link between Insecurity and Inflation
To understand how insecurity and inflation are connected, it is essential to recognize howone problem intensifies the other. Insecurity disrupts economic activities, especially in
sectors like agriculture, trade, and investment. As insecurity drives up costs due toproduction shortfalls and market disruptions, inflation rises. Conversely, inflation
exacerbates poverty and unemployment, which in turn drives recruitment into criminal
activities and insurgency, further fueling insecurity.
Insecurity’s Role in Inflation
Insecurity has crippled key economic sectors in Nigeria. Agriculture, which employs over
35% of the labor force and contributes about 24% to the country’s GDP, has suffered
immensely due to attacks by insurgents and bandits.
According to the World Bank,
insecurity in northern Nigeria has led to a 30% reduction in agricultural output, resulting in
food scarcity and price hikes. The National Bureau of Statistics (NBS) reported that food
inflation reached 25.25% by the end of 2023, primarily driven by supply chain disruptions
in the northern and middle-belt regions.
Similarly, insecurity deters foreign and domestic investment, reducing job creation and
further pushing inflation upwards”
—He said
.
He pointed out that With a weakened economy, the government is forced
to spend more on security, diverting resources away from critical development projects,
thus leading to slower economic growth and higher inflation
Inflation as a Catalyst for Insecurity
According to him, inflation worsens socio economic conditions, fostering the very
environment that breed corruption.
“As the cost of living rises, with inflation reducing real
incomes, more Nigerians are pushed below the poverty line. The World Poverty Clock
estimates that over 71 million Nigerians currently live in extreme poverty, a figure that rose
by 7 million in 2023 due to inflation.
When economic hardship increases, so does the
propensity for criminality and insurgency, as more people turn to illegal means to survive.
This dynamics is particularly evident in the high rates of youth unemployment, which have
soared to over 33%, according to the NBS, making the unemployed more susceptible to
recruitment by terrorist and criminal groups”—He said
He however proffered solutions and the way forward:
” Strengthening Community Policing
Community policing offers an effective solution to Nigeria’s security challenges.
By
integrating local communities into security frameworks, authorities can build trust and
foster better intelligence sharing. Local knowledge is invaluable in identifying criminal
elements and preventing attacks before they escalate. States like Lagos and Enugu have
pioneered community policing initiatives that have seen positive results, reducing crime
rates in their areas.
Scaling up these efforts nationwide will require investment in training, infrastructure, and
logistical support for local security agencies, alongside efforts to harmonize relationships
between state and federal policing structures.
This will not only improve local security but
also allow businesses and agricultural activities to resume, thus stabilizing prices and
helping to low
Youth unemployment is both a symptom and a driver of insecurity. Vocational training
and entrepreneurship initiatives can serve as preventative measures, providing
alternative avenues for gainful employment and reducing the appeal of criminal activity. Programs such as the N-Power Initiative have had moderate success in reducing youth
unemployment, but there is room for significant improvement in scale, funding, and oversight.
Successful youth empowerment schemes in other African countries have led to tangible
reductions in crime”– He said
“projects can reduce their vulnerability to radicalization. Similar programs, if well-funded
and properly implemented in Nigeria, can contribute to both reducing insecurity and
increasing economic productivity, which would help curb inflation.
“Enhancing Intelligence and Surveillance
Investing in advanced technology for intelligence gathering and surveillance is critical in
addressing the country’s security challenges. Nigeria’s security forces need to modernize
their approach by utilizing drones, satellite imagery, and data analytics to monitor high-
risk areas. International partnerships with countries like the United States and Israel, who
have expertise in counter-terrorism and surveillance, could be instrumental.
Case studies from regions where technology-enhanced security operations have been
successful, such as the use of drones in tracking Boko Haram movements, have
demonstrated the potential of such tools in improving security outcomes. As security
improves, economic activities will recover, leading to lower inflation rates as supply
chains stabilize”
The Frontline Freightforwarder also urged the CBN to introduce targeted lending programs that support
sectors with high growth potential, such as technology, agriculture, and small and
medium enterprises (SMEs) so as to ensure Economic stability,
reduced insecurity and lower inflation
Publisher Peoples forum magazine and online , Pastor Tunde ojudun also address the gathering:
” we are celebrating People’s Forum magazine’s 15th National Business Summit with the theme, Insecurity and Economic Growth. We all know that man needs money, he needs sound economic base but above all that he must be secured before talking of money or financial growth.
Insecurity has no doubt affected businesses and the nation’s economy at large.
Farmers cannot go to farm like they in the past for fear of kidnappers, killer herdsmen and insurgents”
Speaker after speaker at the Business were unanimous in their submissions . They call for collaborative efforts of both Government and private sector towards addressing the current security and Economic challenges facing the country so as to move the Nation forward.
The peoples forum business summit also featured presentation of Awards to Dr. Segun Musa and other deserving personalities and unveiling of the Peoples forum magazine .