Counting the development costs of the conflict in North-Eastern Nigeria: the economic impact of the Boko Haram-led insurgency

Abstract

Nigeria presents an important case for examining the interaction between economic emergence and (in)security on account of the Boko Haram-led insurgency. This paper interrogates long-standing theoretical assumptions about the economic consequences of violent conflict in such a complex space. It analyses the cost of North-East Nigeria’s conflict on development by considering its impact on the economy at the national and subnational levels. Generalised assumptions about the ways through which conflict affects development appear to hold in some regards but not in others. Evidence suggests some disruption in fiscal adjustments at the macro level, trade and investment as well as agricultural production and commerce within the North-East but less so with regard to economic growth and foreign direct investment flows at the national level. The paper finds evidence of a dichotomy in terms of the impact of the conflict on the national and subnational economy. There is a high degree of containment of the repercussions of the conflict at the subnational level. However, there remains a degree of interconnectedness across these strata that are influenced by both domestic and international political economy dynamics.