POLITICAL ECONOMY OF INSECURITY (Pols 204)

Introduction

This note examines how economic and political conditions shape the emergence and persistence of insecurity in Nigeria, focusing on its major manifestations and their policy implications.

This refers to the study of how political economy and social conditions contribute to the emergence and consequences of insecurity in society. In Nigeria, for example, insecurity has become a major development challenge.

The political economy of insecurity in Nigeria shows that security problems are closely connected to economic and political conditions. Boko Haram and banditry are strengthened by socio-economic deprivation, weak institutions and criminal economies. Therefore, it has significant implications for poverty, inequality and social stability.

Addressing insecurity therefore requires more than military intervention. Nigeria needs effective governance, job creation, poverty reduction, strong institutions, responsible management of natural resources, environmental protection and social policies that protect vulnerable citizens.

A comprehensive approach linking security, economic development and good governance is essential for achieving lasting stability.

Among the most significant forms of insecurity in Nigeria are the Boko Haram insurgency and the increase in armed banditry (North-East and North-West respectively).

The Boko Haram

Boko Haram

Boko Haram emerged in the North-eastern region and gradually transformed from a religiously-oriented movement into a violent insurgency. The group's activities became particularly serious from 2009 onward, following major confrontations with Nigerian state forces. Boko Haram has attacked communities, security institutions and other targets, while also destroying economic and social activities in affected areas.

Boko Haram's rise has connections to poverty, exclusion, weak governance and political instability — North-Eastern Nigeria has experienced significant developmental challenges, including low levels of education, limited empowerment opportunities and inadequate infrastructure. These conditions do not automatically produce terrorism, but they can create vulnerability that extremist organisations exploit. Boko Haram has therefore operated within an environment where economic hardship and social marginalisation have created opportunities for recruitment. It has also exploited grievances associated with corruption, inequality and perceived injustice in its propaganda. The group's activities have disrupted agriculture, markets and other commercial activities.

Banditry and Its Political Economy

Banditry has become another security challenge in Nigeria, particularly in the North-West region and parts of the North-Central (including Kwara). It has been associated with kidnapping for ransom, cattle rustling, attacks on rural communities, destruction of property and other forms of criminal activity. Unlike Boko Haram, banditry does not have a single ideology or centralised organisational structure. Many bandits are primarily motivated by economic interest, so their activities can be understood partly through the concept of criminal economies, in which insecurity becomes a source of income. Several factors have contributed to banditry in Nigeria, including competition over land and natural resources — particularly between farmers and pastoralists — cattle theft, access to grazing areas, access to rural resources, and weak conflict-regulation mechanisms. Banditry has also seriously affected agriculture, herding and other commercial activities, which in turn affects the wider economy and society.

Oil Bunkering

Oil bunkering refers to the illegal theft, diversion, transportation and sale of petroleum products, particularly associated with the oil-producing areas of the Niger Delta, where the petroleum industry is central to Nigerian development. Illegal oil activities are connected to broader issues such as poverty, unemployment, environmental degradation, corruption and, importantly, grievances over the distribution of oil wealth — all of which reduce government revenue and can damage pipelines and the environment. It also displaces legitimate economic activity and may help finance other forms of banditry. The problem of oil bunkering demonstrates an important feature of the Nigerian economy: despite the enormous wealth generated by petroleum, many communities, including oil-producing areas, have experienced environmental and socio-economic hardship, while weak regulation and corruption have helped enable other illegal activities and pipeline damage affecting local communities.

Fuel Subsidy Removal

The removal of the petrol subsidy — a major reform announced in May 2023 — was intended to reduce government expenditure and redirect resources towards other areas of the economy. However, the policy produced significant short-term economic pressure, as fuel prices increased sharply. The political economy of subsidy removal is closely connected to Nigeria's dependence on petroleum. The rise in fuel prices has pushed up transportation and production costs, contributing to a higher cost of living for low-income households. These effects can deepen economic hardship and increase social tensions. Supporters of subsidy removal argue that it will free up government resources that can be redirected to infrastructure, education, healthcare and social programmes. Critics, however, argue that removing the subsidy without adequate social protection can disproportionately affect poor and vulnerable citizens.

Conclusion

Overall, insecurity in Nigeria — whether expressed through insurgency, banditry, or resource-related criminality — is deeply rooted in economic deprivation, weak governance and unresolved grievances, reinforcing the need for development-focused, not purely security-focused, responses.