Kidnapping Crisis in Nigeria: $1.66m Paid in Ransoms as Insecurity Threatens Investment and Business Growth
Between July 2024 and June 2025, Nigeria’s kidnap-for-ransom crisis transformed into a structured, profit-driven industry that now rivals legitimate business operations in scale.
A new report by SBM Intelligence reveals that at least 4,722 people were abducted in 997 incidents, with kidnappers demanding nearly ₦48 billion and receiving verified ransom payments of ₦2.57 billion ($1.66 million) within the one-year period.
The growing “ransom economy” is not only draining household wealth but also eroding business confidence, discouraging investment, and fueling insecurity nationwide.
Currency Depreciation Fuels Rising Ransom Demands
Despite record ransom figures, naira depreciation has weakened kidnappers’ dollar earnings. For example, the ₦653.7 million collected in 2022 equaled $1.13 million, while the higher ₦2.57 billion collected this year translates to just $1.66 million.
Criminal groups now inflate ransom demands in naira to offset currency losses, mirroring inflation-driven corporate pricing strategies.
Northwest: Epicenter of Mass Abductions
The Northwest region remains the most dangerous, recording 42.6% of incidents and 62.2% of victims, with Zamfara, Kaduna, and Katsina topping the list.
Mass abductions—incidents involving more than five victims—accounted for nearly 25% of all cases, with villagers increasingly forced into slave labor on farms and mining sites run by armed groups.
Regional Trends: High-Value Targets in Oil and Conflict Zones
- South-South (Delta State): One gang demanded ₦30 billion in ransom, targeting oil-linked wealth.
- Northeast: Boko Haram-linked factions dominated ransom collections, including ₦766 million (30% of the national total) for the release of Justice Haruna Mshelia.
- Religious Leaders: At least 17 Catholic priests were abducted, with ₦460 million demanded and ₦70 million paid.
Impact on Businesses and Economy
Kidnapping is crippling Nigeria’s economy by:
- Driving food inflation as farmers abandon fields.
- Forcing SMEs to shut down due to security costs.
- Raising insurance premiums and relocation costs for large corporations.
- Discouraging foreign investment, as insecurity now competes with formal business activity.
Eroding Public Trust and Rise of Vigilantes
With 68% of Nigerians rating security performance poorly, vigilante groups have filled the gap—often providing short-term relief but also engaging in extortion and creating further instability.
Outlook: Kidnapping as a Parallel Economy
Experts warn that unless Nigeria disrupts ransom flows, strengthens rural governance, and stabilizes the economy, kidnapping risks becoming permanently institutionalized.
For businesses, this means higher operational costs and reduced expansion opportunities. For households, it means disposable income continues to be diverted into survival. For investors, the persistence of the “ransom economy” signals a major obstacle to Nigeria’s economic growth.
