Economy

Rising insecurity in Nigeria drives away foreign investors: Analyst

Date: Jul 2, 2025

Nigeria’s deepening insecurity is putting foreign investment at risk, with Chinese businesses reportedly scaling back operations due to worsening instability.

A recent study highlights the growing threats posed by armed groups, kidnappings, and unchecked violence across the country.

Dr David Matsanga, a political analyst and conflict resolution expert, described the situation as a national emergency, warning that the country is on the verge of internal collapse.

“Nigeria is collapsing from within,” he said. “From Boko Haram insurgents in the northeast to heavily armed herders in the Middle Belt, the security situation is dire. No investor wants to operate under such threats.”

The report points to a sharp rise in abductions, banditry, and attacks on both civilians and security personnel. The lack of effective government response has created a climate of fear and uncertainty, making it increasingly difficult for foreign companies to maintain operations or expand investments.

Matsanga said he had taken the issue to the African Court on Human and Peoples' Rights, arguing that the Nigerian government had failed in its constitutional duty to protect citizens and maintain law and order.

“We must hold leaders accountable for the suffering of their people,” he said. “The international community may look away, but Africans must confront these failures head-on. This is not just about investment, it's about lives, livelihoods, and the future of the region.”

He also criticised what he called a lack of urgency from Abuja, warning that if security continues to deteriorate, more international investors will flee and the economic consequences will be severe.

The warning comes at a time when Nigeria is already battling economic challenges, including high inflation, rising unemployment, and a weakening Naira.  

--ChannelAfrica--

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