A report by SB Morgen (SBM) Intelligence says the rising cases of kidnappings in the federal capital territory (FCT) are driving up the cost of living in the city.
In recent weeks, the nation’s capital has experienced an uptick in the rate of kidnappings and thefts, including “one chance,” a type of robbery in which unsuspecting passengers are lured into commercial vehicles and dispossessed of their belongings.
In the report, SBM Intelligence, a research organisation that compiles and analyses data about happenings in Nigeria, said the government’s failure to confront the escalating insecurity has “forced residents to take extensive measures to safeguard themselves”.
“Following the deterioration of security in states sharing boundaries with the FCT, such as Kogi, Nasarawa and Niger, bandit groups seeking new territories and wealthier victims set their sights on the capital,” the report said.
“Between 2019 and the lead-up to the end of 2023, kidnap attacks were concentrated on Bwari, as well as other satellite areas such as Kuje, Gwagwalada and Kwali, with the latter two local council areas experiencing other issues such as armed robbery and pastoral conflicts.
“In the past few months, however, the insecurity has become more mainstream, with regular attacks in upscale neighbourhoods housing the Abuja Municipal Council Area elites.
“As a result, many have invested in enhancing their security infrastructure and adopting various precautionary measures such as avoiding public transportation, extreme measures such as refraining from late-night movements and arming themselves with weapons such as pepper sprays and knives.”
SBM said to gather data on the “economic repercussions stemming from the surge in kidnappings in Abuja and its profound impact on the city’s residents”, one-on-one interviews were conducted on residents across various locations in the FCT.
The report said estate security fees have increased by 20 percent, transportation costs have risen by 100 to 250 percent, and rent in upscale areas has gone up by 10 to 15 percent.
The report added that business revenues are down by 33 percent, and there is a decline in rent in satellite areas.
FINANCIAL LOSSES
SBM said in a bid to meet up with the substantial ransom value demanded for the release of their loved ones, families of abducted victims “find themselves grappling with substantial financial losses as they exhaust all available funds to meet ransom demands”.
The research organisation said families of kidnap victims borrow money from friends and relatives, take out loans, or liquidate assets such as homes, businesses and cars to raise ransom.
“Upon the return of victims, a considerable portion of their time is consumed by efforts to repay borrowed funds,” SBM said.
ESCALATION IN SECURITY COST
According to SBM, residents, including individuals and businesses, have taken to “diverting extra resources toward reinforcing security measures”.
“The heightened expenditure on security systems, personnel, and protective measures imposes additional strain on personal and corporate budgets,” the report said.
“For many residents, acquiring supplementary security comes at a considerable expense, especially considering the prevailing economic challenges in the country.
“Unfortunately, there are some residents in the city who, grappling with financial constraints, cannot afford increased security measures and are left to rely solely on fate.”
The report quoted a respondent who lives in an estate in the Idu area of the FCT as saying that the estate management has advised residents to buy and install cameras in their houses as an added security measure.
INCREASED TRANSPORT COST
The research firm said residents in the FCT “find themselves grappling with increased transportation expenses, particularly for movement within the city centre”.
“The widely used public transport service, ‘Along’, has become a hotspot for ‘One Chance’ operatives, prompting residents to opt for more secure alternatives such as Bolt and Uber,” the report adds.
“However, the surge in fuel prices has rendered these ride-hailing services relatively expensive.
“Unfortunately, fraudulent individuals have also targeted these services, posing additional risks, especially for women who rely on them, particularly during nighttime movements.”
BUSINESS DOWNTURN
SBM Intelligence said the current insecurity atmosphere has contributed to a downturn in economic activities, particularly impacting nightlife such as night markets, hangout spots and recreational and entertainment spots.
The report said many employees, who often work late, “now prefer to head straight home instead of engaging in late-night shopping or recreation”.
“The decrease in foot traffic is evident as businesses face reduced patronage, driven by concerns about kidnapping. This economic downturn threatens financial losses for local and small enterprises,” SBM said.
The research firm added that the kidnappings take a psychological toll on residents, and goes beyond mere financial concerns, extending to mental and emotional wellbeing.
In areas such as Bwari and regions along the FCT boundary with Niger state, where residents have experienced increased kidnappings, there is a pervasive and constant fear, it stated.
