Kidnappings cost Nigeria N6.5bn in ransom in six months

A report on Nigeria’s rising insecurity has revealed that between July 2021 and June 2022, no fewer than 3,420 people were abducted across Nigeria, with 564 others killed in violence associated with abductions.

This was disclosed by socioeconomic research firm, SBM Intelligence in a report titled “The Economics of Nigeria’s Kidnap Industry.”

The report stated that in the same period N6.531 billion was demanded in exchange for the release of captives while N653.7 million was paid as ransom.

The report stated that based on what could be verified, between July 2021 and June 2022, no fewer than 3,420 people were abducted across Nigeria, with 564 others killed in violence associated with abductions.

It added that Kaduna state led in kidnap reports for the period, with 1119 people kidnapped and 149 casualties, followed by Zamfara with 836 cases with 91 casualties.

In the ensuing period, N6.531 billion was demanded in exchange for the release of captives while a fraction of that sum (N653.7 million) was paid as ransom.

As of the exchange rates between the naira and the US dollar on 1 August 2022, these figures translate to $9,806,306.31 and $1,126,126.13 respectively.

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The report does not include the later ransom payments for the Abuja-Kaduna train incident as most of those victims were released in July 2022 as it was reported on 25 July 2022 that eight Nigerian hostages parted with N100 million each, while a Pakistani hostage paid N200 million.

SBM said its report is only up-to-date as of Sunday, 31 July 2022, citing data was collated through desk research using various proprietary tools to fact-check and copy-edit the information gathered.

These abductions, which are also almost evenly distributed across the country, have an impact on the Nigerian economy, as it has limited business and investment in the heaviest-hit areas. This ranges from travel to starting new businesses and attracting investments.

The report also highlighted that the frequency of abduction is a spotlight on the state’s capacity to keep its people safe. The rise of an armed group like Ansaru who promise protection from both the government and other armed groups is a threat not just to the government’s authority, but also on state territory, leading to the influx of ungoverned spaces and other contested territories.