The rising cases of kidnapping in Abuja, Nigeria’s capital city, has left an undesirable economic impact on residents, a new report has said.
SBM Intelligence, a research advisory firm, disclosed this in its report titled ‘Inside Nigeria’s Hostage Capital: Unraveling the Economic Impact of Abuja’s Kidnap Epidemic’, released on Thursday.
The report explained that the current atmosphere of insecurity in Nigeria’s capital has contributed to a downturn in economic activities by 33 per cent.
The rate of kidnap in Nigeria’s capital city in recent months has left residents afraid for their safety.
SB Morgen’s report said Abuja has witnessed a significant surge in minor thefts, ‘One Chance’ robberies, armed robberies, and home break-ins, with the recent kidnap cases indicating a rapid deterioration in the country’s security situation.
The research firm said it conducted thorough interviews with residents across various locations in Abuja, to understand their apprehensions regarding the escalating cases of kidnapping and the economic effects.
In addition to these in-depth interviews, it said news reports detailing kidnapping incidents in the capital city were also analysed to provide a holistic overview.
Economic impact
Delving into the economic implications stemming from the surge in kidnappings in Abuja and its profound impact on the city’s residents, the report noted that there has been a 10 to 50 per cent rise in rent in upscale areas.
According to the report, the surge in crime rates, particularly kidnapping, is resulting in a decline in property values, especially in affected areas like Bwari and its surroundings. It noted that landlords are grappling with the repercussions as a significant number of individuals are relocating from these regions.
This, it said, could deter prospective buyers and investors, negatively impacting the local real estate market.
It explained that transportation fares are up by 100 to 250 per cent due to the prevailing crisis.
“The residents in the FCT find themselves grappling with increased transportation expenses, particularly for movement within the city centre,” it said.
It added that the widely used public transport service, ‘Along,’ has become a hotspot for ‘One Chance’ operatives, prompting residents to opt for more secure alternatives such as Bolt and Uber.
Worse still, the report said the increase in fuel prices has rendered these ride-hailing services relatively expensive.
Ripple Effects
The current atmosphere of insecurity has contributed to a downturn in economic activities, particularly impacting nightlife such as night markets, hangout spots and recreational and entertainment spots, the report said. This has resulted in a 33 per cent downturn in economic activities.
The report said many city workers, who often work late, now prefer to head straight home instead of engaging in late-night shopping or recreation.
“The decrease in foot traffic is evident as businesses face reduced patronage, driven by concerns about kidnapping. This economic downturn threatens financial losses for local and small enterprises,” the report said.
It said residents, including individuals and businesses, have taken to diverting extra resources toward reinforcing security measures.
“The heightened expenditure on security systems, personnel, and protective measures imposes additional strain on personal and corporate budgets. For many residents, acquiring supplementary security comes at a considerable expense, especially considering the prevailing economic challenges in the country,” it added.
The SBM report further showed that about 283 individuals were abducted between 15 January 2023 and 15 January 2024.
“Insecurity in and around Abuja is fuelling tensions in the capital, and although the violence is still mostly in satellite towns such as Bwarn and Kuje, our data, which spans between 15 January 2023 and 15 January 2024, shows a steady increase in abductions in the main city centres in Abuja Municipal Council Area, bringing insecurity closer to the heart of Nigeria’s government,” the report said.
Recommendation
To curtail the growing kidnapping incidents, SBM Intelligence recommends the urgent need for proactive government intervention to apprehend perpetrators and set a precedent, discouraging others from engaging in such criminal activities.
“Addressing the current lack of affordable public transportation in Abuja is a priority to enhance residents’ security while commuting.
Also, the report said the government needs to establish an ongoing dialogue with the community to understand and respond to residents’ needs.
“Introducing a governor, or ideally a mayor with autonomous executive powers separate from the federal government, would instigate accountability and prompt the adoption of protective measures,” it said.
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