BAMIDELE Sunday Mogaji, ACA
Department of Accounting, Federal University of Lafia
talk2sonydelex@gmail.com
08038467212, 09025368399
JOSHUA Funsho Oyekanmi
Federal. University Gashua
oyekanmijoshua9@gmail.com
07065948945
SAMSON Okpanachi Daniel
University of Jos
samsondan38@gmail.com
07065752517, 09154692430
LENGE, Joshua Danladi
University of Jos
jlenge65@gmail.com
07035620754
ABSTRACT
The main goal of the study is to investigate the extent of the effect of insecurity on financial
stability. The research was based on secondary data relating to insecurity (killing, Kidnapping,
sense of terror and invasions of farmlands) and financial stability (GDP). Data were collected from
credible institutions which include the World Bank, Institute for Economics and Peace (IEP),
Nigeria Security Tracker, Nextier SPD Violent Conflict Database13 and an Amnesty International
report. Multiple linear Regressions with the aid of SPSS was used to analyze the data. The study
findings that insecurity has a significant effect on financial stability. Also, the direction of the effect
of insecurity on financial stability is negative for most of the measures of insecurity. Therefore, the
study concludes that insecurity is highly consequential in Nigeria as it reduces national productivity
and causes financial instability. Hence, as a matter of urgency, government should prioritize
national security at the policy and legislation level if the policy objective is to achieve economic
and financial stabilization. Decentralizing national security, improving both human and
technological resources and capabilities, as well as enforcing cooperation and collaboration among
security agencies are the recommended strategies for enhancing national security towards economic
and financial stability.
Keywords: Effect, Security, Insecurity and Financial Stability