Business and finance consultant Oluwatoyin Olufon, FCCA, ACA, ACTI, has raised fresh concerns over the escalating economic impact of insecurity across Nigeria, warning that the crisis has evolved beyond a national safety issue to become one of the country’s most significant financial burdens.
In a recent commentary, Olufon noted that businesses are now spending more on security than on expansion, a shift he describes as “the real cost of insecurity.” According to him, expenses once dominated by power generation have been overtaken by the rising need for private security guards, escort services, surveillance systems, tracking devices, and protective logistics. “These costs are no longer about thriving,” he said, “they’re about staying alive.”
Industry reports also indicate increasing disruptions in the movement of goods across the country, as transporters avoid high-risk routes, resulting in delivery delays, price hikes, and operational uncertainty. Olufon emphasized that consumers ultimately bear these costs, paying more for goods due to risks they never chose to take.
The impact on human capital is equally severe. Skilled workers are relocating from unsafe regions or emigrating entirely, while companies are forced to allocate more resources to staff safety. In many organisations, employees feel unsafe commuting to work, a trend that has quietly reduced workplace productivity.
Olufon further highlighted the investment implications of insecurity, noting that foreign and local investors often view instability before opportunity. “Money is shy,” he stated. “When a region is unsafe, investment disappears, and jobs disappear with it.” The effect ripples into consumer behavior: reduced nightlife, shortened business hours, and declining foot traffic in commercial centers, all of which weaken economic activity.
Agriculture, one of Nigeria’s largest sectors, is also affected as farmers are unable to access farmlands in volatile regions. This results in lower food supply, disrupted distribution, and rising prices—factors driving inflationary pressures nationwide.
According to Olufon, insecurity has become “the biggest hidden tax” on Nigerian businesses. Though rarely documented on formal ledgers, its effects are visible in higher costs, delayed operations, and increased financial risk.
He concluded that Nigeria’s economic recovery and long-term growth depend heavily on addressing the insecurity crisis. “Fix security,” he said, “and we unlock the economy. Because safety isn’t just a national need—it’s an economic strategy.”
