TERRORISM AND NIGERIAN ECONOMY: AN ASSESSMENT OF THE BOKO HARAM INSURGENCY

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TABLE OF CONTENTS
Title page — — — — — i
Declaration — — — — — ii
Certification — — — — — iii
Approval — — — — — iv
Acknowledgment — — — — — v
Dedication — — — — — vi
Contents — — — — — vii
Abstract — — — — — x

CHAPTER ONE
INTRODUCTION
1.0 Background of the Study — — — — 1
1.1 Statement of the Problem — — — — 3
1.2 Objectives of the Study — — — — 4
1.3 Research Questions — — — — 4
1.4 Assumption — — — — — 4
1.5 Significance of the Study — — — — 5
1.6 Research Methodology — — — — 5
1.7 Scope and Limitations of the study — — — 5
1.8 Definition of Terms — — — — 6
1.9 Outline of Chapters — — — — 8

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CHAPTER TWO
LITERATURE REVIEW AND THEORETICAL FRAMEWORK
2.0 Introduction — — — — — 11
2.1 Conceptual Clarification — — — — — 12
2.1.1 Terrorism — — — — — 12
2.1.2 Nigeria’s Economy — — — — — 17
2.2. History of Terrorism — — — — — 20
2.2.1 Causes of Terrorism — — — — — 23
2.2.2 Implication of Terrorism — — — — 25
2.3 Trends and Patterns of Terrorism in Nigeria — — — 26
2.4 Meaning of Boko Haram — — — — 29
2.4.1 Membership of the Boko Haram Sect — — — — 31
2.4.2 Ideology of the Boko Haram Sect — — — — 32
2.4.3 Religious and Ethnic Basis of the Boko Haram — — — 33
2.5 Theoretical Framework — — — — 36

CHAPTER THREE
HISTORICAL BACKGROUND OF BOKO HARAM AND DIMENSIONS OF ITS
OPERATION
3.0 Introduction — — — — — 41
3.1 An Overview of Boko Haram — — — — — 42
3.1.1 Evolution of Boko Haram — — — — 44
3.1.2 Dawah Phase — — — — — 45
3.2 Background of the Boko Haram Terrorists Activities — — — 46
3.3 Dimensions of the Boko Haram Terrorist Activities — — — 50
ix

CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
4.0 Introduction — — — — — 60
4.1 Research Question 1 — — — — 60
4.2 Research Question 2 — — — — 62
4.3 Research Question 3 — — — — 68

CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
5.0 Introduction — — — — — 77
5.1 Summary — — — — — 77
5.2 Conclusion — — — — — 80
5.3 Recommendations– — — — — 81
BIBLIOGRAPHY — — — — — 85

x

ABSTRACT
The impact of the activities of the dreaded Boko Haram has brought physical, psychological and economic damage to Nigeria and has become a threat to the entire nation. It is against this background that the study examined the impact of Boko Haram insurgency on the economy of the affected states in Nigeria. The study was a literature based research and therefore descriptive in structure. Basically secondary data that was used in this research include relevant text books, magazines, archival materials, published and unpublished works, journals, newspapers and internet materials all of which the researcher thoroughly explored for critical examination and analytical insight. The data collected was analysed using a framework of content analysis and simple percentage. Findings from the study indicates that the atrocities of Boko Haram have severe implications on the economy and social lives of the people of the northeast where the activities of the sect is concentrated. The study recommends that anybody that has links with the sect should face the law and government should develop a strong political will to fight the scourge.
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CHAPTER ONE
INTRODUCTION

1.0 Background of the Study
Terrorism and insurgency is globally becoming a household word as there is no nation
that is completely absolved from its effect. This is the reason why Rourke (2008)
observes that war, terrorism and other forms of transnational political violence are in
many ways more threatening today than ever before as civilian casualty has been on
increase. It is however difficult to evolve a single definition for the term “terrorism”.
The difficulty emanates from the lack of consensus or unified perspective among
nations or scholars as to what could be regarded as terrorist act (Oche, 2001).
Hence, terrorism has been described variously as both a tactic and strategy; a
crime and a holy duty; a justified reaction to oppression and inexcusable abomination
since it is a function of whose point of view is being represented (Awake, 2008).
Indeed, the worldwide manifestation of terrorism and insurgency has been evident in
Africa, but also in Nigeria. With particular reference to Nigeria, the phenomenon has
found expression in the emergence of Boko Haram insurgency (2001-date). Since its
advent, the sectarian insurgency has wrecked immense havoc in the country,
especially by “using explosives and firearms with gruesome, fatal” consequences
(Awake, 2008).The alarming level of terrorists attacks in different parts of the country,
leaving unpalatable consequences for the nation’s economy and its growth. To address
the threat to national security and combat the increasing waves of crime, the Nigerian
government since 2013 has budgeted a huge amount of money on security, and the
National Assembly passed the Anti-Terrorism Act in 2011(Ewetan, 2013). Despite
these efforts, the level of terrorism and insecurity in the country is still high, and a
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confirmation of this is the low ranking of Nigeria in the Global Peace Index (GPI,
2012).
In spite of the plethora of security measures taken to address the daunting
challenges of terrorism and insecurity in Nigeria, government efforts have not
completely produced the desired positive result. This has compelled the Nigerian
government in recent time to request for foreign assistance from countries such as
USA, Israel, and EU countries to combat the rising waves of terrorism and insecurity
(Adebayo, 2013). Amidst the deteriorating security situation in the country, Nigeria is
also confronted with daunting developmental challenges which pose serious threat to
socio-economic development. These developmental challenges include endemic rural
and urban poverty, high rate of unemployment, debilitating youth unemployment, low
industrial output, unstable and deteriorating exchange rate, high inflation rate,
inadequate physical and social infrastructure, very large domestic debt, and rising
stock of external debt (Ewetan, 2013).
Some scholars in conceptualizing security placed emphasis on the absence of
threats to peace, stability, national cohesion, political and socio-economic objectives
of a country (Igbuzor, 2011; Oche, 2001; Nwanegbo and Odigbo, 2013). Thus, there is
a general consensus in the contemporary literature that security is vital for national
cohesion, peace and sustainable development. It is therefore apparent that national
security is a desideratum, sine qua non for economic growth and development of any
country (Oladeji and Folorunso, 2007).
In reviewing the concept of Nigeria’s economy, we will be able to establish a
relationship between Terrorism and Nigeria’s economy. Economy is regarded as the
wealth and resources of a country or region especially in terms of population and
consumption of goods and services (Anyenwa and Oaikhenar, 2000). It is an entire
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network of producers, distributors, and consumers of goods and services in a local,
regional or national community e.g. Nigeria’s economy. Meanwhile the Nigerian
economy especially in the Northern part of the country has been under serious attack
due to the activities of the insurgents. Farmers who predominantly engage in
subsistence farming in the Northern part of the country (Borno, Yobe, and Bauchi) no
longer feel safe to go about their farming activities and by implication this has led to
the increased rate of food starvation in that part of the country.
1.1 Statement of the Problem
The emergence of Boko Haram insurgency has introduced a terrorist dimension,
hitherto unknown, into the criminal space in Nigeria. Series of bombings have been
carried out by the sect, as well as taking hostage of innocent citizens. Even the United
Nations Building in Abuja was not spared in the bombing spree. In rich as well as
poor countries, terrorism exerts a heavy toll on national economies. It is inevitable that
the economic impact of terrorism would be more felt in unsophisticated mono-cultural
low-income economies than they would be felt in highly advanced, diversified
industrial economies. Therefore, the continued rise in terrorism activities in the
country, if not checked, may result in greater investor apathy for the country and
resulting in low inflow of Foreign Direct Investment (FDI), and would make
institutional investors look for other stable economies to invest their money. On the
state of the country, when people feel insecure, their appetite to invest, to buy or rent
from the product of investment reduces; and that is why all over the world, any
country that radiates an environment of insecurity naturally repels investment
initiatives from both the international community and its own local investors. Hence,
terrorism is a threat to the economic, political and social security of a nation and a
major factor associated with underdevelopment; because it discourages both local and
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foreign investments, reduces the quality of life, destroys human and social capital,
damages relationship between citizens and the states, thus undermining democracy,
rule of law and the ability of the country to promote development (Adebayo, 2013). It
was on this note that this study seeks to examine the impact of Boko Haram
insurgency on the economy of the affected states in Nigeria.
1.2 Objective of the Study
The general objective of this study is to examine terrorism and Nigerian economy; an
assessment of the Boko Haram insurgence. While the specific objective is outlined as
follows:
i. To assess the correlation between terrorism and economy
ii. To assess ways the Boko Haram crisis poses a threat to Nigeria’s economy
iii. To assess the implications of Boko Haram crisis on Nigerian economy
1.3 Research Question
In this light, the study will be guided by the following research question.
i. What is the correlation between terrorism and economy?
ii. In what ways do Boko Haram constitutes challenges to the Nigerian economy?
iii. What are the impacts of Boko Haram insurgency on Nigeria economy?
1.4 Assumption
In accordance with the research question deduced from the research study, I assume
this:
i. There is correlation between terrorism and economy
ii. If there is high level of Boko Haram crisis, it is likely to pose a threat to
Nigeria’s economy.
iii. If the Boko Haram crisis deepens, it is likely to have an implication on
Nigeria’s economy.
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1.5 Significance of the Study
The significance of this study is that it will act as a guide to the government in their
quest to improve the economy in the affected region and enhances knowledge on the
impact and types of threat it constituted judging from the fact that terrorism is
currently a prevailing cankerworm and it is very spontaneous and typical. This study
will help proffer solutions and theoretically will be useful to writers, scholars,
journalists etc, in order to add to their existing knowledge what they already know
about terrorism and Nigeria’s economy, particularly with regards to the Boko Haram
terrorist activities.
1.6 Research Methodology
The method of data collection used in this study is the secondary source which is also
known as documentation. Due to the spontaneous nature of the issue under
investigation, information is being gathered from magazines, journals, newspapers,
internet materials and textbooks which are relevant to the study. The framework of the
content analysis is what I adopted due to the fact that it will aid me in giving better
appreciable acknowledgement to the study and make us knowledgeably acquainted to
the subject under analysis. In similar vein, data collected will be analysed
descriptively using tables and simple percentage in some cases.
1.7 Scope and Limitations of the Study
This study on terrorism and Nigeria’s economy, an assessment of the Boko Haram
insurgency will cover the activities of the Boko Haram sect in Maiduguri, Adamawa,
Bauchi, Gombe and Yobe states.
Limitations of the Study
Financial constraint: Insufficient fund tends to impede the efficiency of the
researcher in sourcing for the relevant materials, literature or information and in the
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process of data collection (internet, newspapers, magazines, journals etc.). More so,
there is scarcity of relevant materials on the issue (Terrorism and Nigeria’s economy,
an assessment of the Boko haram insurgency) due to its evolving and spontaneous
nature.
Time constraint: The researcher will simultaneously engage in this study with other
academic work. This consequently will cut down on the time devoted for the research
work. However despite these constraint, the researcher was able to overcome these
challenges and made sure that the work was completed successfully.
1.8 Definition of Terms
This entails stating the meaning of various concepts used earlier, so as to give a better
understanding of the meaning and also give a vivid picture of these concepts in the
minds of the readers. According to Janct (2004:107), definition of terms used in a
research is operation. Works are defined as they are used by the researcher. This
means that researcher uses certain words in the way they fit to the study, which may
be different from the ordinary dictionary meaning. For an operational understanding of
the term used within this study, the definitions are as follows:
Terrorism: This is an illegitimate means of attempting to effect political change by
the indiscriminate use of violence. Also it is the use of violence to achieve political
objectives.
Boko Haram: The term Boko Haram is a derivation of Hausa world ―Boko meaning
―Animist western or otherwise non-Islamic education, while Haram is a word with
Arabic origin that figuratively means ―sin but literally, forbidden‘. In order words,
Boko Harm means ―western education is forbidden or is a sin‖ (Wkipedia, Boko
Haram, 29/10/2016:1) Boko Haram is very controversial Nigeria militant Islamic
group that seeks for the imposition of sharia law in the entire northern states of
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Nigeria. The name officially of the group is jama‘atu Alis-sunna Lidda‘awth wal
jihad‖, which in Arabic translated to people committed to the propagation of the
teaching of prophet and jihad‖ literally therefore, the group means ―Association of
sunnis for the propagation of Islam and for Holy war.
Insurgence: This is defined as a political battle waged among a cooperative or
acquiescence populace in order for a group of outsiders to take over (or at least
undermine) the government of a nation.
Menace: Menace means a possible danger, a threat, or an act of threatening. It also
means something that threatens to cause evil, harm, injury etc. This also means the
show of an intention to inflict evil, an indication of a probable evil or catastrophe to
come.
Economy: This refers to the wealth and resources of a country, especially in terms of
production and consumption of goods and service. It is also the state of a country or
region in terms of the production and consumption of goods and services and the
supply of money.
Security: Security can be defined to mean ― the total sum of action and measures,
including legislative and operational procedures, adopted to ensure peace, stability and
the general wellbeing of a nation and its citizens (Shinikaiye, 2004:2).
Sect: Sect can be seen as a body of persons distinguished by pecularities of faith and
practice form other bodies adhering to the same general system. Specially, the
adherents collectively of a particular creed or confession, a domination or older form
of faith or believe (Britanic world language dictionary).
Peace: Peace is generally defined as the absence of war, conflict, anxiety, suffering
and violence and absolute peaceful co-existence. However, peace connotes more than
a mere absence of war hostilities because an absence of conflict is inevitable.
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Therefore, peace could be defined as a political condition that ensure justice and social
stability through formal or informal institutions, practices and norms (Howard, 1987).
Domestic Terrorism: Domestic Terrorism is the commission of terrorist attacks in a
state by forces inside or originating from the state, as opposed to terrorist attacks by
forces external to the state. In other words, domestic terrorism is a terrorist act practice
in one‘s own country against her own people (online dictionary).
Violence: Violence is defined by the World Health Organization (WHO) as the
international use of physical force of power, threatened or actual against oneself,
another person, or against a group or community, that either results in or has a high
likelihood of resulting in injuries, death psychological harm, mal development or
deprivation. (Wikipedia, WHO).
1.9 Outline of Chapters
The study shall be divided into five chapters. The first chapter discusses the
background to the study, statement of the problem, objectives of the study,
assumption, and significance of the study, organisation of various chapters, method of
data collection, scope and limitations of the study and definition of various terms.
The second chapter shall consist of literature review; exhaustively discuss
terrorism causes and its implication in the economy as well as the theoretical
framework of the study, trends and patterns of terrorism in Nigeria, meaning of Boko
Haram, the funding membership and ideology of the Boko Haram sect, and the
religious and ethnic base of the Boko Haram sect.
Chapter three would focus on the Historical Background of Boko Haram and
its evolving dimension which focused on the evolution of Boko Haram, and its
terrorist’s campaign. It also discuss the background of the Boko Haram sect and its
terrorist activities as well. Chapter four focuses on data presentation and analysis, and