The Economics of Nigeria’s Kidnap Industry: Follow the money

Nigeria faces security crises across its six geopolitical zones, including Boko Haram, bandits, criminal youth gangs, sea piracy and armed separatist agitation. All the groups, as well as others, take part in kidnapping. Ransom payments have become the dominant motivation for kidnapping due to Nigeria’s struggling economy, rising inflation and high unemployment rates. Between July 2022 and June 2023, 3,620 people were abducted in 582 kidnap-related incidents in the country, with a reported ransom demand of at least ₦5 billion and actual ransom payments of ₦302 million. However, this figure could be higher due to underreporting.

Kidnap dynamics differ between individual and community cases, with less secrecy in larger-scale abductions. In some instances, kidnappers opt for non-monetary ransom, like foodstuff. Notably, the Northwest and Northcentral regions exhibit higher in-kind cases of ransom demands, correlating with Nigeria’s widespread poverty. Additionally, these regions have seen a surge in demands for motorcycles as part of ransom payments.

Catholic priests, previously targeted for their ransom value, encountered 21 abductions during this period. Kaduna was the most dangerous state for priests, who were often kidnapped during services. Abductors demanded around ₦50 million in the past, but the Church now refrains from disclosing ransom negotiations possibly to avoid encouraging further attacks. Statewise, Edo kidnappers sought high ransoms but received little. On the other hand, Taraba paid the most, primarily due to a single case.

The Northcentral saw higher ransom amounts demanded, notably in Nasarawa, where targeted abductions yielded maximum ransom with minimal resistance. The South-South’s low ransom payments may indicate efficient police intervention or victim silence. The past year showed a higher likelihood of being kidnapped in Kaduna, Niger or Zamfara, the three states recording the highest per capita abduction rates and deaths during kidnap attempts. Civilians bore the brunt of kidnap attempts around the country, with 430 casualties, while security agents and kidnappers accounted for 19 and 121 deaths, respectively.

These figures reflect Nigeria’s security agencies’ struggle to contain kidnap for ransom as the number of kidnappers killed has not served as a credible deterrent for would-be kidnappers. The industry’s profitability outweighs the perceived threat of state intervention and police rescues. The current economic difficulties, such as high inflation and a weak currency, would lead to more desperation and a hike in ransom demands, leaving impoverished families struggling to save their loved ones. Efforts to combat kidnapping must be comprehensive, addressing the root causes and consequences alike. Strengthening law enforcement, improving socioeconomic conditions, and fostering education are essential to eradicating the economic incentives for kidnappers. International cooperation, intelligence-sharing, and stringent legal frameworks can also help to curb cross-border kidnapping networks. Kidnapping is a serious crime that has a significant economic impact. The cost of ransom payments, lost wages, and security measures to prevent kidnapping can be staggering. In addition, the psychological and emotional toll on victims and their families can be devastating. The economics of kidnapping are complex, and there is no easy solution to this problem. However, governments, organisations, and communities can work collaboratively to develop holistic solutions and effective strategies to prevent and combat this crime by understanding its economic costs.

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