The escalating kidnapping incidents in Abuja, the capital city of Nigeria, have resulted in significant economic repercussions for its inhabitants, according to a recent study by SBM Intelligence. The study, titled ‘Inside Nigeria’s Hostage Capital: Unraveling the Economic Impact of Abuja’s Kidnap Epidemic,’ unveiled on Thursday, highlights a 33 percent decline in economic activities due to the prevailing sense of insecurity.
The frequency of abductions has instilled fear among Abuja’s residents, contributing to an increase in petty thefts, ‘One Chance’ robberies, armed thefts, and burglaries, signifying a rapid decline in national security conditions. SB Morgen conducted extensive interviews with locals in various parts of Abuja to gauge their concerns about the kidnapping surge and its economic aftermath, complemented by an analysis of news reports on the issue.
The economic consequences are notably severe, with rent in upscale areas seeing a 10 to 50 percent increase. The heightened crime rates, especially kidnappings, are causing a drop in property values in regions like Bwari, leading to relocation by many residents, which could turn away potential buyers and investors, adversely affecting the real estate market.
Transportation costs have skyrocketed by 100 to 250 percent due to the crisis, forcing residents to face higher charges for inner-city travel. The prevalent use of ‘Along’ public transport has become risky, driving people towards safer options like Bolt and Uber, which have become pricier with the rise in fuel costs.
The insecurity has notably dampened economic activities, affecting nightlife, markets, and entertainment venues, resulting in a 33 percent economic downturn. Workers are now opting to go straight home after work, impacting businesses with decreased customer turnout due to kidnapping fears, leading to potential financial losses for local and small businesses.
Moreover, individuals and businesses are allocating more funds towards enhanced security measures, further straining budgets amid ongoing economic difficulties.
SBM’s report also noted that approximately 283 people were kidnapped in the area from January 15, 2023, to January 15, 2024, indicating a growing concern for safety even in the central parts of Abuja.
To address the kidnapping crisis, SBM Intelligence urges immediate government action to arrest and deter criminals, improve public transportation for safer commuting, and foster community dialogues for better understanding and meeting resident needs. The establishment of a governor or mayor with independent executive powers from the federal government is suggested to ensure accountability and the implementation of effective security measures.
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