The Cost of Bad Governance: How Insecurity Devastates Nigeria’s Economy

By Jackson Omenazu, PhD

Good governance is the backbone of every prosperous nation. When leadership is transparent, accountable, and committed to the welfare of its people, societies thrive and economies grow. However, when governance fails, the consequences are dire. In Nigeria, years of poor leadership have fueled a surge in insecurity, creating a vicious cycle that cripples economic progress and deepens poverty.

Bad governance in Nigeria is marked by corruption, weak institutions, electoral malpractice, lack of transparency, and a failure to uphold the rule of law. Public resources are often mismanaged or outrightly embezzled with impunity, leaving critical sectors such as education, healthcare, and infrastructure grossly underfunded. This failure erodes public trust and leaves security agencies ill-equipped to handle emerging threats.

The widespread insecurity in Nigeria today is a direct consequence of decades of poor leadership. Terrorism, banditry, kidnapping, communal clashes, and armed robbery afflict many parts of the country. Groups like Boko Haram, ISWAP, and various bandit gangs have flourished—fueled by government neglect, poverty, and unemployment—conditions that bad governance both created and failed to address.

When citizens lose faith in their government’s ability to protect them, they often turn to ethnic militias, vigilante groups, or criminal organizations, further destabilizing the nation.

The economic impact of insecurity in Nigeria is both severe and far-reaching:

Foreign investors view Nigeria as a high-risk environment due to kidnappings, terrorism, and political instability. This discourages investment inflows that could create jobs and stimulate economic growth.

Many businesses—particularly in the North, East, and rural areas—have shut down due to frequent attacks. Entrepreneurs now spend heavily on private security, increasing operational costs and, in some cases, relocating to safer countries.

As businesses close and investment dries up, millions lose their jobs. Youth unemployment rates soar, fueling more crime and deepening the poverty cycle.

Highly skilled Nigerians—including doctors, engineers, and academics—are leaving the country in large numbers in search of safety and better opportunities abroad. Even unskilled individuals risk dangerous, illegal migration routes, often ending in modern-day slavery or death. This mass exodus deprives the nation of the human capital critical to development.

As economic activity declines, so does tax collection. States most affected by insecurity struggle to fund basic services, while the federal government borrows more to cover deficits—further increasing the national debt burden.

Farming communities have been among the hardest hit by insecurity. Many farmers abandon their land to avoid attacks, resulting in food shortages and skyrocketing prices of basic commodities nationwide.

The long-term effects of insecurity and economic stagnation are devastating. Chronic poverty becomes entrenched, while education and healthcare systems deteriorate. The naira continues to weaken against global currencies, and Nigeria risks further isolation as international confidence in its stability erodes.

Without urgent reform, the country may face deeper social unrest, a humanitarian crisis, and the potential collapse of essential state functions.

Nigeria’s experience demonstrates that bad governance is not just a political issue—it is an economic and social time bomb. Insecurity, fueled by poor leadership, undermines economic growth, destroys livelihoods, and threatens national survival.

The solution lies in transparent governance, the strengthening of democratic institutions, inclusive economic policies, and holding leaders accountable. Only then can Nigeria break free from this destructive cycle and unlock its true potential.

Chief Omenazu Jackson, FL:IIMCA, JP
President-General, Ohanaeze Ndigbo Worldwide