National Insecurity and Investment in Nigeria

Abstract

This research examined the impact of National Insecurity on Investment in Nigeria from the period 1986-2020. In a bid to actualize the main objective of the study, datas were collected from secondary sources such as various editions of CBN statistical Bulletin, National Bureau of statistics and reports from the Nigerian military budget. The model of this study was built based on Keynes National income model and data were analyzed using Augmented Dickey-Fuller (ADF) Unit Root test, Johanson co-integration test and Error Correction Model. The selected variables (i.e Investment, Government Expenditure on Emergency cases, Government Expenditure on Ammunition and Government Expenditure on Amnesty) had a co-integrating relationship indicating a long run relationship among the variables used in the study. The coefficient of the Error Correction Model is correctly signed as it is negative but statistically significant at the 0.05 level which is an indication that any disequilibrium in the system will be restored at the speed of 34% approximately. Based on the conclusion of this study, it is recommended that government and its agents should look beyond the issue of tribalism, religious interests and Nepotism and focus on a quick response to increasing budget allocations for the purchase of required ammunitions to tackle the insecurity in Nigeria. The government should also set up agents to effectively monitor the proper utilization of the funds allocated for this purpose.