A new report by SBM Intelligence has revealed that businesses in Abuja recorded a 33 per cent decline in their business revenues between January 2023 and January 2024 as a result of the rising spate of kidnapping and insecurity in the capital city.
According to the report titled, “Inside Nigeria’s Hostage Capital: Unravelling the economic impact of Abuja’s kidnap Epidemic,” the economic impact of insecurity in the Nation’s capital ranges from increase in the cost of transport and rent in upscale areas, increase in estate security fees, a drop in business revenue and financial loss through ransom payment.
The SBM report showed that about 283 individuals were abducted between 15 January 2023 and 15 January 2024.
The security situation also impacted social and economic activities including night life entertainment in hangout spots and recreational centres, as many operators now opt to close for the day as early as 5pm to 6pm, to avoid falling victim of insecurity.
This contributed to the 33 per cent decline in the revenues of businesses operating in the city.
The report further revealed that the increase in criminal activity, notably kidnapping, had resulted in a decline in property value, particularly in areas such as Bwari and environs. 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 rates have continued to rise, as more people are migrating to the more secure neighbourhoods, the report added.
“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”
The situation is also reported to have led to an increase of 100 to 250 per cent in transportation fares, as the popular public transport service, ‘Along,’ has become a target for ‘One Chance’ criminals, leading residents to choose safer options like Bolt and Uber.
“The residents in the FCT find themselves grappling with increased transportation expenses, particularly for movement within the city centre,” SBM Intelligence pointed out.
It further revealed that residents in the crime hotspots around the city have seen increased cost of security fees of up to 20% per cent in the past year while others have had to purchase more security gadgets like CCTV cameras etc.
