He stated this while giving out his presentation at the Inauguration of the New Leadership of the Ondo State Youth Network (OSYN) on the Inaugural Topic: "Insecurity; The Social Economic Impact On The Youths Of Ondo State" held at Heritage Continental Hotel, Akure.
Read below the full presentation by the Ondo Lawmaker;
"Security, in my opinion, is an essential prerequisite for true and lasting economic growth to take place. Therefore, the economic security of Nigeria is intricately linked to its national security. The epidemic proportion of criminality and violence in the country has ramifications for the economy.
Insecurity and fear pervade every inch of the Nigerian landscape.
Security, peace, stability and good governance have been regarded as prerequisites for the achievement of any meaningful socio-economic development of any nation. It has been argued that there is a strong link between security and development.
Peace and stability have been the core aim and objective of most nations in the world over the past decades, security challenges have continued to remain a major setback to achieving meaningful socio-economic development in most African countries particularly Nigeria.
We're grateful for the gift of Arakunrin Odunayo Akeredolu who has been at the forefront of the State Security Network and that of the Southwest in general. This has set a pace even for other states in the country.
A leader who is confused causes too much anxiety, and a leader who is too controlling is revealing more insecurity and a lack of leadership.
But beyond all these uncertainties insecurity tends to pose in our society, we must continuously reassure ourselves that an exciting and inspiring future awaits us (youths)beyond the noise, beyond the guilt, doubt, fear and insecurities around.
Security, peace, stability and good governance have been regarded as prerequisites for the achievement of any meaningful socio-economic development of any nation. It has been argued that there is a strong link between security and development.
Insecurity has contributed to the daunting challenges of development which pose a serious threat to socio-economic growth. Such socioeconomic problems include chronic rural and urban deprivation, lack of physical and social infrastructure
1) Disruption of Economic Activities: With pervasive insecurity comes internal displacement of people and the crippling of economic activities in the worst-affected areas.
2) Decimation of Consumer Confidence: Protracted insecurity, as it has been the case in recent years in Nigeria, can depress consumer confidence, which in turn reduces consumer spending. Not only does insecurity affect individual spending; it also affects businesses who, due to the uncertainty insecurity creates, put off investment decisions.
3) Decrease in Foreign Direct Investment (FDI): The amplification of news coverage on insecurity in a nation can make things look worse to outsiders than they really are. This can reduce the confidence of foreign investors in such a nation that has massive security challenges. Investor confidence can worsen, particularly where there is a weak and ineffective government response to the security challenges.
According to the United Nations Conference on Trade and Development (UNCTAD), FDI flows to Nigeria averaged $5.3 billion annually from 2005-2007. However, UNCTAD data shows FDI to Nigeria averaged $3.3 billion from 2015-2019, a period that has been marked by heightened and widespread insecurity in the country.
Insecurity is one of the major reasons for Nigeria's unattractiveness for inward foreign investment in the last five years, amongst other factors such as policy dysfunctions, including multiple exchange rates of the Central Bank of Nigeria. Poor transport infrastructure, unreliable grid-electricity supply (which exacerbates high operating costs), inefficient judicial system, and unreliable alternative dispute resolution mechanisms are some of the other factors accounting for the decline in FDI flows into the country.
According to UNCTAD, the 71 per cent surge in FDI last year was due to "resource seeking inflows in the oil and gas sector." With the drastic
With the drastic reduction in the spate of attacks against oil installations in the Niger Delta region of the country, it is unsurprising that the oil and gas sector buoyed FDI inflows, while general insecurity in the country continued to dampen investment.
4) Disproportionate Defence Spending Vis-à-vis Other Economic Sectors: In responding to the increasing insecurity in Nigeria, the government has been allocating hundreds of billions of naira to defence and security-related expenditure. These are large sums of money that should have been going elsewhere in the economy, especially in the education and health sectors.
The domestic economic impact of this exorbitant defence expenditure is further devalued as long as it is mostly foreign procurement-based. This is not helpful to the growth of the economy.
5) The Struggle for Personal Survival Undermines Innovation: Nigerians are creative people. Nigerians in the diaspora are among the leaders in innovation and change in many sectors. But back home, survival has become the overriding consideration for many people. Heightened insecurity has made a lot
6) Increase in Brain Drain: Nigeria is losing its best brains on a daily basis through mass emigration to Western countries. Canada seems to be the country of preference for most Nigerians at the moment, due to its open-door policy for qualified migrants.
A recent poll conducted by NOI Polls found that: "Almost 9 in 10 respondents (88%) disclosed they are seeking work opportunities abroad." It also found that: "83% of doctors who filled the survey and are based abroad are licensed in Nigeria, indicating that they had completed their medical education in Nigeria before departing beyond the shores of Nigeria."
The search for a better quality of life is the main reason for the mass emigration of Nigerian doctors and other professionals. The prospect for the good life is being jeopardised in the country by insecurity and by its negative impact on economic opportunities.
7) Perverse Incentives: There are lots of people in high places that financially benefit from the insecurity. For such people, it becomes their goal to maintain the status quo rather than encourage an improvement. There is now a massive industry around insecurity in Nigeria and it is not in the interest of those benefiting from it to support efforts to provide more security.
As an exemplification, hostage negotiation is a new and booming career for some Nigerians. When a member of a family is kidnapped, the security agencies put the family in contact with hostage negotiators who are paid not only to negotiate downward the massive ransom demanded by the hostage-takers, but also help deliver the ransom.
8) Decline in Productivity: Continued insecurity and the government's inability to bring an end to it can lead to a feeling of helplessness and hopelessness, especially in the areas that are vulnerable and amongst victims and their families. This state of agitation can affect productivity. For instance, with rampant kidnappings on major highways in some parts of the country, many roads have become no-go areas. Inability to travel freely on its own can reduce the productivity of those affected.
10) Deepening Corruption at All Levels: The chaos and uncertainties created by insecurity can provide the breeding ground for corruption.
Solution:
Community Policing is the way forward to our insecurity challenges. And we hope that AMOTEKUN evolves into our Community Police someday.
