The alarming surge in kidnappings within the Federal Capital Territory (FCT) has significantly impacted economic activity and has led to an escalation in the cost of living in the city.

In a special report by SBM Intelligence, an Africa-focused market and security intelligence gathering and strategic consulting firm, they said that despite how brazen these kidnappers are, the government has failed to confront the escalating threat.

“This has forced residents to take extensive measures to safeguard themselves. Following the deterioration of security in states sharing boundaries with the FCT, such as Kogi, Nasarawa, and Niger, bandit groups seeking new territories and wealthier victims set their sights on the capital,” the report reads in part.

“Between 2019 and the lead-up to the end of 2023, kidnap attacks were concentrated on Bwari, as well as other satellite areas such as Kuje, Gwagwalada, and Kwali, with the latter two local council areas experiencing other issues such as armed robbery and pastoral conflicts.

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“In the past few months, however, the insecurity has become more mainstream, with regular attacks in upscale neighbourhoods housing the Abuja Municipal Council Area elites. As a result, many have invested in enhancing their security infrastructure and adopting various precautionary measures such as avoiding public transportation, extreme measures such as refraining from late-night movements, and arming themselves with weapons such as pepper sprays and knives.”

After conducting several interviews with residents to understand the severity of the matter, SBM Intelligence found that one of the obvious effects of the rising kidnapping events on Abuja residents is financial loss through ransom payments.

“In a bid to meet up with the substantial ransom value demanded for the release of their loved ones, families of kidnapped victims find themselves grappling with substantial financial losses as they exhaust all available funds to meet ransom demands. Families borrow from friends and relatives in desperate situations, take out loans, or liquidate assets such as homes, businesses, and cars. Upon the return of victims, a considerable portion of their time is consumed by efforts to repay borrowed funds,” the report reads.

Another noticeable issue is the rise in security costs, which is an extension of the rising cost of living, SBM Intel notes. Residents, including individuals and businesses, have taken to diverting extra resources towards reinforcing security measures.

“The heightened expenditure on security systems, personnel, and protective measures imposes additional strain on personal and corporate budgets. For many residents, acquiring supplementary security comes at a considerable expense, especially considering the prevailing economic challenges in the country. Unfortunately, there are some residents in the city who, grappling with financial constraints, cannot afford increased security measures and are left to rely solely on fate,” SBM Intel said in the report.

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“The current atmosphere of insecurity has contributed to a downturn in economic activities, particularly impacting nightlife such as night markets, hangout spots, and recreational and entertainment spots. Many city workers, who often work late, now prefer to head straight home instead of engaging in late-night shopping or recreation.

“The decrease in foot traffic is evident as businesses face reduced patronage, driven by concerns about kidnapping. This economic downturn threatens financial losses for local and small enterprises.”

To address these issues, SBM suggests immediate government intervention through swift government action against rising kidnappings, enhanced security measures, the provision of public transportation for residents and a redesign of the FCT political security architecture.