According to the United Nations Children’s Fund (UNICEF), Nigeria has lost $100 billion as a result of the decade-long conflict in the North-East region.
According to a UNICEF report, the capital of Borno State, Nigeria lost money between 2008 and 2021.
The direct effects of the conflict, in terms of death and injury, loss of livelihoods, displacement, and infrastructure damage, are transformed into long-term economic impacts,” according to the report. This is because the effects of conflict reduce the economic growth rate in the country relative to what it might have been had the conflict not occurred.
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The report was released by the UN agency on Wednesday.
This study provides a quantitative estimate of the economic cost that arises from violence and grave violations. The study found that, for the duration of the conflict, cumulative losses (i.e., the losses that build up each year that the economy is damaged) were around US$100 billion. The monetary measures are an indicator of the lost development opportunities suffered as a result of the conflict.
While noting the impacts of conflicts, it said the North-East crisis has implications beyond Nigeria’s shores.
“The impacts of conflict are not confined to the regions that experience these most acutely. Nigeria as a whole, is worse off as a result of the conflict,” the report added.“Given Nigeria’s economic size relative to the rest of the region, slower growth in the country may have broader regional spillover effects. That is, regional growth is likely to be lower than in a counterfactual case in which Nigeria was free of conflict.”
While commenting on the development, UNICEF’s representative in Nigeria, Cristian Munduate, said that even if the conflict’s effect reduces in the coming years, its economic impacts would still be “profound”.
Even if we anticipate a reduction in conflict effects over the next ten years, the Nigerian economy still faces profound cumulative losses, she said.The ‘scarring’ effect of this drawn-out conflict may inhibit the economy from achieving its full potential, putting the nation’s future prosperity in jeopardy.
