After over three years of resilience, equities may be giving in to rising insecurity as they shed N4.915 trillion last week alone.

As the rising tensions dominate public discussion, investors urged the Federal Government to take urgent steps to curb insecurity across the country, warning that the crisis could undermine confidence and threaten the gains of reforms.

They noted that persistent security challenges could discourage investment inflows, slow economic growth and put additional pressure on the investment.

Although some analysts linked the market downturn largely to profit-taking, other stakeholders noted that the massive decline has raised concerns about the economic impact of insecurity.

Market capitalisation, which stood at N160.508 trillion on May 29, depreciated by N4.915 trillion to close at N155.593 trillion on June 5.

Also, the all-share index (ASI), which measures the performance of listed equities, declined by 7,992 points or 3.2 per cent from 250,385.47 points to 242,593.31 points.

The investors noted that as political activities ahead of future elections begin to gather momentum, rising insecurity could increase tension across the country, discourage investments and undermine the gains recorded in the capital market.

They called for measures to reduce unemployment and engage young people productively.

According to them, the government must strengthen intelligence gathering and community policing to prevent attacks before they occur, while also deploying technology-backed solutions such as drones, surveillance systems and integrated intelligence databases to improve national security.

President of the Independent Shareholders Association of Nigeria (ISAN), Moses Igbrude, said insecurity often creates tension among investors, especially as political activities begin to gather momentum.

He urged the government at all levels to step up efforts to secure lives and property.
However, he noted, while the situation is worrying, it does not suggest that the economy is on the verge of collapse.

“It is a phase and it will pass. The various levels of government must wake up to their responsibilities of securing and providing for the citizens of Nigeria,” he added.

President of the NewDimension Shareholders Association of Nigeria, Patrick Ajudua, said insecurity discourages both local and foreign investments, adding that no investor would willingly commit funds to an unsafe business environment.

“Insecurity does not encourage investment. For us to have a strong market, the government must prioritise the safety and security of investments. No investor will want to invest in an unsafe investment climate,” he said.

Ajudua recalled that the market lost over N4 trillion in three consecutive trading days, stressing the need for urgent action by the authorities.

“The government must improve security, which is deteriorating every day. Security and welfare of citizens remain the primary responsibility of the government. Efforts must be made to address the situation urgently so that the gains achieved through market reforms are not reversed,” he added.

The former president of the Ibadanzone Shareholders Association of Nigeria, Eric Akinduro, said insecurity remains one of the biggest challenges confronting Nigeria, with implications extending beyond humanitarian concerns to economic growth and investment.

According to him, persistent insecurity could weaken foreign investor confidence, as investors generally prefer stable and predictable environments.