Revenues of businesses in Abuja recorded a 33% decline occasioned by the rising spate of kidnapping and insecurity in the city between January 2023 and January 2024.
This is according to a report published by SBM Intelligence titled, “Inside Nigeria’s Hostage Capital: Unravelling the economic impact of Abuja’s kidnap Epidemic”.
According to the report, the economic impact of insecurity in the Nation’s capital ranges from an increase in the cost of transport and rent in upscale areas, an increase in estate security fees, a drop in business revenue and financial loss through ransom payment.
Impact on businesses
Businesses in the city saw a decline in revenue as a result of the downturn in economic activities like nightlife entertainment in hangout spots and recreational centres. The report noted that many individuals and businesses now opt to close for the day as early as 5 pm to 6 pm to avoid being victims of insecurity.
This contributed to the 33% decline in the revenues of businesses operating in the city.
Impact of security on housing cost
Also, the report explained that the increase in criminal activity, notably kidnappings, is causing property values to decrease, particularly in areas such as Bwari and its vicinity. It has been observed that landlords are facing the consequences as many people are moving away from these areas.
On the other hand, in the affluent and more secure areas of the city, rents were inching upwards as more people migrated from the places where kidnapping and abductions were common.
It stated,
- “Prices are inching upwards in the upscale parts of the city, which are perceived to be safe, while they are inching downward in the outlying areas”
Effect of insecurity on transport
It was clarified that transportation fares have risen by 100% to 250% due to the ongoing crisis. Additionally, the popular public transport service, ‘Along,’ has become a target for ‘One Chance’ criminals, leading residents to choose safer options like Bolt and Uber.
It stated,
- “The residents in the FCT find themselves grappling with increased transportation expenses, particularly for movement within the city centre,”
Furthermore, the SBM report revealed that residents in the crime hotspots around the city have seen increased cost of security fees of up to 20% in the past year while others have had to purchase more security gadgets like CCTV cameras etc.
The SBM report showed that about 283 individuals were abducted between 15 January 2023 and 15 January 2024.
