Insecurity hurts input sourcing, holds back N200bn investment – LCCI

An estimated N200 billion planned investments in agro-allied industries in Nigeria have been put on hold owing to the poor security situation in the country, according to the Lagos Chamber of Commerce and Industry (LCCI).

Raw material sourcing for agro-allied industries in the country is also facing a heightened risk, according to the chamber.

Speaking at a security dialogue organised by the LCCI on February 6, Babatunde Paul Ruwase, president of the chamber, said many rural farmers were holding back from the current planting season due to possible herdsmen attack.

Ruwase said food security was at risk as agricultural production was threatened by security concerns,

“This has resulted in growing negative impact on investors perception and confidence. The oil and gas sector is facing fresh threats of attacks on oil installations. Attacks by herdsmen on farming communities across the country are not abating, resulting in increasing loss of lives,” he said.

Nigeria is blessed with arid land, over 44 solid minerals and crude oil. The opportunity-laden country is the largest market in Africa, with over 180 million people, half of which are below 25.

However, it is hard hit by kidnapping, Boko Haram insurgency, herdsmen-farmers’ clashes, armed robbery and violent crimes.

Ruwase said the impact of security challenges on business and investors was ‘phenomenal’.

“Not much investment activities are taking place in the north-eastern part of the country. The same is true, perhaps, to a lesser degree, in some parts of the country,” he said, adding that the situation meant ICT/ telecoms operators spent N78 billion in replacing vandalised items.

Tukur Buratai, chief of army staff, assured investors that the military were making efforts to protect their businesses, saying that countries across the globe were forming alliances to curb their individual and collective threats.

Buratai said the Nigerian army was poised to defeat territorial threats and maintain core values of professionalism, including training, welfare, and civil-military cooperation, among others.

ODINAKA ANUDU