EFFECTS OF SECURITY CHALLENGES ON BUSINESS SUSTAINABILITY OF SMEs IN NIGERIA

Ogochukwu Sheila Asogwa, Njideka Phina Onyekwelu, Ngozi Ukamaka Azubike

Abstract


The continued security challenges in Nigeria had drown aattention to scholars, practitioners, international communities.The Federal government of Nigeria had attempted to proffer solutions to forestall the growing incidence of insurgency, yet the spate of killings, bombings, kidnapping ,armed robbery operations are on the increase which undermines the operations of SMEs in Nigeria. The study was an attempt to ascertain the implications of security challenges on the performance of SMEs. A qquantitative research design was employed and annual secondary data were obtained from the Global Terrorism Index (GTI) and Nigeria Bureau of Statistics on Boko Haram attacks, Kidnapping, and Armed robbery operations.A Preliminary diagnostic was conducted in an attempt to establish the validity of the model using The Augmented Dickey-Fuller Unit Root Test and co-integration test showed a long tern relationship between security challenges and SMEs performance in Nigeria. Multiple regression models via Ordinary Least Square (OLS) formed the basis for estimation. The results showed that insecurity challenges have a negative and significant effect on the performance of SMEs in Nigeria and recommended that the Federal Government should take effective measures in addressing issues relating to Boko Haram activities, Kidnapping, armed robbery attacks considering its negative effects on the Socio-economic development of the country. This could be achieved through the creation of a National Guard Intelligent Personnel and a Special Forces Unit in the Nigerian military trained in counter-terrorism strategies, tactics, asymmetric warfare, and desert warfare that can combat insurgency and other related crimes decisively.

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