AN ANALYSIS OF ALARMING RATE OF INSECURITY IN NIGERIA AND ITS EFFECT ON BANKING SECTOR
BACKGROUND OF THE study
Recently, Nigeria has been hit by a firestorm of instability that has claimed the lives of several innocent citizens, foreigners, security personnel, elected politicians, and other government workers. The country's political and economic leaders,
as well as the entire populace, are lamenting the loss of loved ones, investments, and the absence of security throughout the majority of the country as a result of the insecurity problem's epic proportions.
Since 2009, violent crimes such as kidnappings, ritual killings, car jackings, suicide bombings, religious killings, politically motivated killings, terrorism, ethnic confrontations, armed banditry, and other violent crimes have become a more frequent occurrence in Nigeria.
In 2012, Imhonopi and Urim. The government has tried everything, including a “force-for-force” strategy and a carrot-and-stick diplomatic approach, but the issue, like the proverbial phoenix, keeps becoming bigger and worse.
Instead of depending primarily on military solutions to resolve insecurity, Imhonopi & Urim (2013); cited Open Society, 2012; and Ujomu, 2001) called for a multi stakeholder engagement.Omoyibo and Akpomera (2013) assert that the state only exists to give security, which is a concept that predates the state.
According to Thomas Hobbes (1996), the state's primary duty is to ensure security.The protection and welfare of the populace ought to be the first priority of the government.
Unfortunately, contrary to what the Constitution requires, the government has not been able to maintain a stable and healthy environment for people, property, and the conduct of commercial and economic operations.
Nigeria's frightening degree of insecurity has fostered crime and terrorist acts around the world, devastating the economy and progress of the nation. The value of human life has waned to the extent that reports of death, especially on a mass scale, are no longer met with great adoration.
The viability and prosperity of the banking industry are in danger as security is becoming a more pervasive problem.If left unchecked, the banking industry's overall performance, as well as the stability and survival of individual banks, may face grave risks (G. O. Nwankwo, 1991).
The function of banks in deciding and affecting the country's economic development is important to note. Therefore, the degree to which banks successfully and efficiently carry out the intermediation function profoundly determines not only the level of public trust in the banking system but also the performance of the banks themselves as well as the performance of the overall economy.
Banks serve as financial institutions that act as intermediaries between surplus units and deficit units in the economy. Insurgency has the impact of gradually destabilising banking infrastructure. Banks are no longer secure, and the industry's personnel does not work in a secure atmosphere.
STATEMENT OF THE PROBLEM
There is no doubt that the existence of a reliable security network in a region is crucial to the viability and profitability of financial institutions. Dr. Uche Olowu claims that the country's insecurity, which is quickly expanding to other areas, has hurt banking operations and business in some areas.
The lack of security scares away foreign investors, which limits investment opportunities in particular areas of the nation and emphasises how unstable Nigeria is as a whole.Nigeria has been troubled by security issues.
Armed robberies, banditry, kidnappings for ransom, terrorist organisations like Boko Haram, and other violent crimes appear to have proliferated throughout Nigeria.
The value of human life has waned to the extent that reports of death, especially on a wide scale, are no longer met with great devotion.
PURPOSE OF THE STUDY
The following are the main goals.
To research the root causes of security issues in Nigeria.
To examine the impact of Nigeria's security situation on the banking industry.
What is the root of Nigeria's security issues?
How has Nigeria's banking industry been impacted by security issues?
SIGNIFICANCE OF THE STUDY
The government will benefit from this study in that it will inform them of strategies for reducing the nation's difficulties with insecurity. Additionally, it will be crucial for academics and researchers who wish to conduct additional research on the subject.
SCOPE OF THE STUDY
This study's goal is to examine how Nigeria's increasing rate of insecurity is hurting the country's banking industry.
LIMITATIONS TO THE STUDY
During the course of this study, the researcher faced significant problems related to finances, time constraints, and a lack of research.
DEFINITION OF TERMS
INSECURITY: Lack of security or stability; the state of being insecure or unsafe; the potential to give way, become unsafe or dangerous
BANKING SECTOR: The banking sector is an industry and a part of the economy that deals with holding money for other people and using that money to invest in leveraged ways to increase wealth.
(2014) Olabanji, O. E., and Ese, U. Nigeria's socioeconomic development and security.2201-4268 Journal of Sustainable Development Studies
2016 Clementina, K An evaluation of security challenges, bank fraud, and commercial bank performance in Nigeria.Nigerian Journal of Business & Management.
Imhonopi, D., Urim, U.M., and Onifade, C.A. (2013) Addressing Nigeria's Insecurity Challenge: The Need for Virtue Ethics and Moral Principles.Journal of Human Social Science International