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Sahel Analyst: ISSN 1117-4668 Page 96 IMPLICATIONS OF BOKO HARAM INSURGENCY ON SMALL AND MEDIUM ENTERPRISES IN BORNO STATE, NIGERIA: A REVIEW Ali,Yakubu Mbasua 1 E-mail: [email protected] : [email protected] Musa, Babangida Muhammad Ph.D 1 Fada, Kodun Abia 1 Abstract Small and Medium Enterprises are the forces that enhance the development of every society, as such, any threats to its operations will impact negatively on the society. The paper reviewed the implications of Boko Haram (BH) insurgency on Small and Medium Enterprises in Borno State. The study specifically reviewed seventeen available existing literature on the Boko Haram insurgency activities. The study discovered that the major implication of Boko-Haram insurgency includes; the destruction of Small and Medium Enterprises and will result in another crisis in the society. Small and Medium Enterprises by implication lost its international trade network because co- traders as it is in the case of Maiduguri the Borno State capital has lost it all customers abroad, especially from the neighbouring countries they share a border with. The study recommended that security is everybody’s business; however, Nigerians, government, the international community and other related organisations should do more to end the crises by providing adequate security. Hence, Small and Medium Enterprise operators/entrepreneurs need to step up in strategising security threats to avert losing the entire enterprises to the hand of the terrorist. By implication, losing the company will lead to frustration to all employees of the enterprises. In conclusion, Boko-Haram is a deadly terror group that destroys anything on their way including SMEs in Borno State this brings the economic activities to a standstill. Keywords: Boko Haram, Small, and Medium Enterprises, Borno State and Terrorism. 1 Department of Business Administration, PMB 127, Gombe State University, Nigeria.

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Sahel Analyst: ISSN 1117-4668 Page 96

IMPLICATIONS OF BOKO HARAM INSURGENCY ON

SMALL AND MEDIUM ENTERPRISES IN BORNO STATE,

NIGERIA: A REVIEW

Ali,Yakubu Mbasua1

E-mail: [email protected] : [email protected]

Musa, Babangida Muhammad Ph.D1

Fada, Kodun Abia1

Abstract

Small and Medium Enterprises are the forces that enhance the

development of every society, as such, any threats to its operations will impact

negatively on the society. The paper reviewed the implications of Boko Haram

(BH) insurgency on Small and Medium Enterprises in Borno State. The study

specifically reviewed seventeen available existing literature on the Boko

Haram insurgency activities. The study discovered that the major implication

of Boko-Haram insurgency includes; the destruction of Small and Medium

Enterprises and will result in another crisis in the society. Small and Medium

Enterprises by implication lost its international trade network because co-

traders as it is in the case of Maiduguri the Borno State capital has lost it all

customers abroad, especially from the neighbouring countries they share a

border with. The study recommended that security is everybody’s business;

however, Nigerians, government, the international community and other

related organisations should do more to end the crises by providing adequate

security. Hence, Small and Medium Enterprise operators/entrepreneurs need

to step up in strategising security threats to avert losing the entire enterprises

to the hand of the terrorist. By implication, losing the company will lead to

frustration to all employees of the enterprises. In conclusion, Boko-Haram is

a deadly terror group that destroys anything on their way including SMEs in

Borno State this brings the economic activities to a standstill.

Keywords: Boko Haram, Small, and Medium Enterprises, Borno State and

Terrorism.

1 Department of Business Administration, PMB 127, Gombe State University, Nigeria.

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Sahel Analyst: Journal of Management Sciences (Vol.14, No.1, 2016), University of Maiduguri

Sahel Analyst: ISSN 1117-4668 Page 97

Introduction

Nigeria has all it takes to be great in terms of human and natural

resources and wants to be one of the developed economies of the world and a

leading nation in Africa by the year 2020. In order to actualise its dream, it

sets the process, for exploitation of resources and the attraction of indigenous

and foreign investors. In spite of this laudable goal and an arrangement put in

place, Nigeria has nothing substantially to show to that effect. It is in the news

now that, most of its citizenry (victims of Boko-Haram) wallow in poverty

and do not have access to the modern health care delivery system, pipe-borne

water, quality education and job opportunity and cannot afford three

square meals daily. This unpleasant development or condition/situation is as a

result of devastating attacks by the Boko-Haram insurgency on the people in

the area.

The poor development status of Nigeria no doubt breeds an

atmosphere of frustrated expectations and foster widespread indignation on

the part of those that are trapped in the vortex circle of abject poverty. The

condition of hopelessness is further aggravated by impotent poverty

eradication programmes and conspiratorial neglect by the Nigerian state. In

the face of this predicament, individuals and groups respond differently

depending on situational factor and capacity. These responses are crystallised

and find expression in various shades of antisocial behaviours not only

insurgency but might result to others like; armed robbery, and kidnapping

among others.

In the midst of all these, Nigeria is confronted with daunting security

challenges that needed a quick response from both government and the

community leaders. The most disquieting insecurity/insurgency issue ever

witnessed in Nigeria is the terror unleashed by Jama’atul Alhul Sunnah

WalJama’a Lidda’ Wati, Wal Jihad - a dreaded militant popularly known as

Boko Haram (BH). The mass media present to the public a multi-varied image

of dramatic acts of bombings with impunity and horrific portrayal killing,

maimed, property and businesses destroyed by Boko Haram. Thus,

everybody, especially in the hotbed of terrorism (Borno State), lives in

constant fear.

However, one begins to wonder how the people who live in the North-

east region go about their socio-economic activities talk more of people in

Borno state. This no doubt portends grave implications for the economic

sector and by extension growth and development of Small and Medium

Enterprises (SMEs) in the area, as all activities will inevitably grind to a halt.

Against this background, this paper is focused on the implications of Boko

Haram activities in SMEs in Borno State - Nigeria.

Borno state has been known as a peaceful and crises free state and was

popularly known as a “Home of Peace” because businesses were booming at it

pick. However, since the emergence of Boko-Haram (BH) terrorist group,

peace has no longer available. The state has been vulnerable to security threats

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Implications of Boko Haram Insurgency on Small and Medium Enterprises in Borno State,

Nigeria: A Review

Sahel Analyst: ISSN 1117-4668 Page 98

forcing the closure of major enterprises across the state and its environment

and many people especially non-indigenes and non-Muslims residing in the

state has no option than to relocate for safety.

The Boko Haram Terrorists

Terrorism is a global phenomenon; it has become a major issue that

threatens the existence of any nation that found itself in their midst. BH

insurgency in Nigeria has been a serious threat to the security of the nation.

Their attack is now a major and common issue in Nigeria, just as it usually

occurs in many countries across the globe, leading to socio-economic

consequences. SMEs are known as the major tool that provides socio-

economic amenities. The inhuman activities of the terrorist have caused many

people their lives, properties and forcing thousands of others to leave their

land. BH terrorist group has been a threat to the economic development of

Borno state in particular and Nigeria at large. SME as a tool for economic

growth can significantly play a vital role in rehabilitating and reviving the

area. A pilot study has shown that most of the areas have been recaptured

from the insurgent by the Nigerian army only a few areas such as Bayan Dutse

in Gwoza Local Government, Bita and Izge.

The current BH insurgence in the North-eastern part of Nigeria that

initially took the form of sectarian religious violence has escalated into

terrorist activities with an international connection which has been difficult for

Nigerian government to penetrate (Awortu, 2015). It is over five years now,

all businesses in Borno state have been on their knees.

Insurgence is a threat not only to the operation of SMEs but to the

development of any nation found its self in this dilemma. The group, Boko

Haram in the northern part of Nigeria has become a national threat. Their

activities in the country have attracted global attention, thereby making the

country as one of the terrorist strongholds. US declared two leaders of dreaded

BH as terrorist and placed a bounty of cash on them for anybody with valid

information about them.

BH manifested in 2009 when the then Governor of Borno State, Sen.

Ali Modu Sheriff declare a war on the members of Yusifiya, for the

breakdown of law and order in the city of Maiduguri, the state capital. It was

headed by Mohammed Yusuf who was killed in the police custody in 2009.It

all started when the members of Yusufiya, were on their way to the cemetery

to bury their dead member and unfortunately they had clashed with security

personnel on duty for not wearing helmet leading to another death of some of

their members. Since then, peace has not been seen in Borno state.

Boko-Haram terrorist group has brought about the decay of Small and

Medium Enterprises in Maiduguri, Borno state and northern Nigeria as a

whole. For instance, Borno state is sharing a border with about three

countries; Cameroon, Niger, and Chad. All these countries are coming to

Nigeria through Borno state mainly to do businesses, but since the emergence

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Sahel Analyst: Journal of Management Sciences (Vol.14, No.1, 2016), University of Maiduguri

Sahel Analyst: ISSN 1117-4668 Page 99

of Boko Haram terrorist in 2009, traders from those countries are no longer

coming and as such, all the Enterprises that are producing those goods that are

exported to those countries cannot longer do it.

However, Businesses regardless of its size cannot operate in a volatile

area, the environment needs to be conducive to all stakeholders involve in the

operation. Small and Medium Enterprises in Borno state have been standstill

since 2009 as a result of the atrocities committed by Boko Haram.

Entrepreneurs scan (social, political, legal, and economical) any given

environment for successful operation of their businesses, Borno was popularly

called a “Home of Peace” has now become a home of pieces.

It appears that, on few medium enterprises that currently exist in

Borno state, this is a result of inhuman activities of the Boko Haram

insurgency. Most of the entrepreneurs/owners of the medium ventures were

forced to shut down their businesses while some were relocated to the more

peaceful environment. Perhaps, small enterprises operating in Maiduguri have

not been easy for them. Chukurah, Eme and Ogbeje (2015), observed that

north-east has witnessed one hundred and fifteen (115) attacks by the

suspected Boko Haram terrorist insurgent, making the environment so

hazardous thereby forcing the people especially investors/entrepreneurs to

alternate to a terrorist-free zone. Though, it is obvious that, in Borno state

alone, a number of attacks claimed by the Boko Haram insurgent from2009 to

2015 are more than a thousand (1000).

The major problem that affects the operation of any business

regardless of its size is the existence of relative peace in the environment

where it operates. Many scholars have attributed the implications of terrorism

on the operation of the business and its owners are; hardship,

underdevelopment, backwardness, and above all poverty. Studies have shown

that even the recent terrorist (Boko Haram) activities in northern Nigeria were

caused by poverty and illiteracy.

To be specific, it appears that, some businesses cannot thrive or

survive in the same environment with terrorist, they are always at the parallel

axis, because, they are a group of people that are ready to destroy, kill and

steal innocent citizens belongings. Boko Haram was the recent terrorist group

that nearly disintegrates the nation. At first, they were killing only non-

Muslims and non-indigenes in the zone, while some were of the opinion that,

they are just political thugs working for their masters for political gain, but of

the truth, Boko Haram group has gone beyond common imagination. Apart

from human and material destructions, the group has equally destroyed many

businesses in the zone especially, the operational activities of SMEs in

Maiduguri, the state capital. This menace is long observed to have been

impairing the foresight of growth and economic development of the region

and making Nigeria at large uneasy business environment (Nafiu, Okpanachi

& Nurudeen, 2014).

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Implications of Boko Haram Insurgency on Small and Medium Enterprises in Borno State,

Nigeria: A Review

Sahel Analyst: ISSN 1117-4668 Page 100

There are many other groups that are operating in the same manner in

which Boko-Haram operate. Recently, an Islamic group called Shiite

popularly called Islamic Movement in Nigeria (IMN) in Zaria, Kaduna state,

Nigeria led by Ibrahim El-Zakzaky as their leader, has metamorphosed into a

terrorist group. On 12th

and 14th

December 2015 clashed with the convoy of

Nigeria chief of Army staff, they blocked the road and stop Army boss

refusing him the road to pass. This has caused many both potential and

existing entrepreneurs a great loss, and many people were said to have died in

the area during the clash, both the perpetrators and innocent citizens. Mahadi

(2016) said that El-Zakzaky the leader of Shiite in Nigeria laid the foundation

for Boko Haram, he further observes that he contributed in one way or the

other to the creation of religious strife in Nigeria. By implication, the current

terrorist activities in the north might have affected the operation Small and

Medium Enterprises in the region especially in Borno state where the deadly

terrorist manifested.

Literature Review

An insurgency is a systematic approach used by a group of people to

kill, destroy, and violently intimidate innocent citizens for their selfish interest

(Ifeoma, Purity & Anaggogu, 2015). The insurgency has been a global

menace which affects the economic, political and social status of the country

experiencing it. The recent insurgency that surfaced from the northern part of

the country popularly known as “Boko Haram” has been a serious challenge

to the country, since their inception in 2009, in the far north of Borno State;

they have destroyed, killed and displaced millions of people which attracted

international or global attention. This has not been well with business

operators in the zone to thrive or survive, especially, SMEs’ owners, however,

this has forced many of them on hold while others were forced to relocate to

the zones that are free of the insurgent.

Despite early attention by both government and researchers in the

field, yet Small and Medium Enterprises has not been given universal

acceptable definition and also, the widely acceptable position that SMEs

remain the formidable engine of growth and development of any country.

According to SMEDAN (2009), a business is defined as small in the

manufacturing sector if it employs fewer than 100 employees. While there is

no official definition of what constitutes a medium-sized enterprise,

businesses with between 100 and 199 employees are generally considered

medium-sized (McMahon, 2001). Thus, SMEs in the manufacturing sector

may be considered as organisations employing less than 200 workers.

Over the past decade, the northern region of Nigeria has experienced a

surge in terrorist violence instigated by the sectarian group known as Boko

Haram. Several analysts have advanced the view that poverty, longstanding

economic disparities within Nigeria, and structural violence, are key factors

underlying the crisis. However, the complex nature of the situation in Nigeria

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Sahel Analyst: Journal of Management Sciences (Vol.14, No.1, 2016), University of Maiduguri

Sahel Analyst: ISSN 1117-4668 Page 101

has at the same time caused some observers to characterise Boko Haram’s

aggression as violent extremism beyond a domestic agenda (Olojo, 2013).

Boko haram has become a threat to the national security. Their

activities have crippled the socioeconomic life of the entire citizenry. Owolabi

(2013) stated that the activities of Boko Haram sect have rubbished the image

of Nigeria and have hampered the quest for achieving millennium

Development Goals (MDG’S) as well as vision 2020. Since the advent of a

new dimension to terrorism in Nigeria, it is clear that the fabric of Nigeria

economic foundation has really been shaken. The impact of the activities

of the dreaded Boko Haram has brought physical, psychological and

economic damage to the Nigeria’s fragile economy. There is a sharp drop in

the commercial activities in the North as foreign investors are gradually

diverting from Nigeria due to the increasing security crisis. Amadu (2013)

noted that with the increased intensity of bombing in the North, there is a

strategic mass movement of individuals from the most attacked northern states

especially in early 2012. The men mostly businessmen stay behind to defend

their livelihood. This sudden movement directly affects school attendance

among children. Some were forced to change location and school. With the

massive killing of youth coppers serving in the Northern Nigeria in 2010,

most Corpers especially southerners reject postings to the north thereby

affecting the manpower needs of the people.

According to Agomuo (2011), it all started in 2006 in the far

Maiduguri, the state capital of Borno State, Nigeria as a child’s play has

become a national disgrace and now a global concern. However, the concern

is the activities now are its implication on the operation of small and medium

enterprises in the area.

A number of researches were conducted on terrorism or insurgency in

the northern part of the country, but little has been done to examine the role of

Small and Medium Enterprises in rehabilitating north-east part of the country

that have been hampered by the insurgent. Ifeoma, Purity and Anaggogu

(2015) carried out a study on the Security Challenges and the Implication for

Business Activities in Nigeria, a critical review. The study was centred on the

general challenges of insecurity on SMEs in the country and secondary data

was used to arrive at the recommendation and conclusion, this shows a clear

gap that this study needs to focus.

Nafiu, Okpanachi and Nurudeen (2014) examined the Impact of

Terrorism on Small and Medium Scale Enterprises Mortality Rates and

Standard of Living in the Northern Region of Nigeria, the study was centred

on the rate of SMEs mortality in the region thereby neglecting the role of the

SMEs in reviving the region. The study reveals that insurgency leads to high

rate of SMEs mortality. The study was narrowed to the rate of mortality of

SMEs and completely avoided how to empower the entrepreneurs and the

entire zone, this would have been the point of concern and knowing how and

when to do so. SMEs were said to be the engine of economic growth, and it is

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Implications of Boko Haram Insurgency on Small and Medium Enterprises in Borno State,

Nigeria: A Review

Sahel Analyst: ISSN 1117-4668 Page 102

obvious that its plays a great role in developing the society, which north-east

cannot be the exception, hence, the need for its role. Been checked and

identified the implication of Boko Haram on northern Nigeria, the key

amongst them is the crippled business operation which SMEs contribute

significantly, therefore, there is a need to examine or assess the role of SMEs

in rehabilitating north-eastern part of Nigeria.

Chukurah, Eme and Ogbeje (2015) conducted a research on the

“Implication of Boko Haram Terrorism on Northern Nigeria”, the study

reveals that Boko Haram terrorist insurgency invigorates as a result of

pronouncement of Goodluck Jonathan as President of the Federal Republic of

Nigeria. The fact that, the study took the holistic implications of Boko Haram

in northern Nigeria, unlike this study, that is narrowed down to specifically

look at the implications of Boko Haram on Small Scale and Medium

Enterprises in Borno State. Since their inception in 2009, Boko-Haram has

been disrupting and destabilising government activities mainly in north-

eastern part of the country. According to the study, it reveals that north-east

has witnessed one hundred and fifteen (115) attacks by the suspected Boko-

Haram terrorist insurgent, making the environment so hazardous thereby

forcing the people especially investors/entrepreneurs to alternate to a terrorist-

free zone. Their activities by implication have crippled all economic activities

in the zone, therefore, this study on completion, will recommend and reveal

the implications of Boko Haram group on the operation SMEs in Borno state.

Nnamdi, Sebastine, Junior and Anyanwu (2015), carried out an

investigation on “Boko Haram Crisis and Implications for the Development of

Northern Nigeria”. The study opined that deadly activities of the Islamic sect,

Boko Haram, are killing the economy of the North is an understatement. This

is to say, business enterprises especially Small and Medium Enterprises will

suffer first because this has to do with the people direct interaction to meet up

their demand. In Maiduguri the state capital, the devastating implications of

serial killings, destruction, and bombings has affected the operational

activities of SMEs in the area, with thousands of entrepreneurs relocating to a

safer place, bringing down completely the activities of SMEs in the state.

Stakeholders have castigated Boko-Haram terrorist for making life

hard and unbearable for the people in Borno state by turning the state into a

base for carrying out terrible and horrendous activities, which have crippled

their businesses and the economy at large (Nnamdi, Sebastine, Junior &

Anyanwu, 2015). This has made the area so vulnerable to criminals and

political thugs to dehumanise the environment. Despite all the assistance from

other developed countries, the Boko Haram is more than just another terrorist

attack. It was a big crack in the wall of our national integrity and a Licensed

under Creative Common.

The year 2011 shows that Boko Haram catastrophic terrorism has

continued to pose a clear threat to the Nigerian economic, social and political

sectors. The Nigerian economies are critically dependent on foreign

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investment and natural resources. Renewable natural resources exploration in

agriculture and foreign investment sectors contributes more to the Gross

Domestic Product of many Northern states’ economies than manufacturing

including Borno State. Bamidele 2012 observed that foreign investment is the

fastest growing sector in many of these states and this is based on the

encouragement given to it. In addition to the significant contributions to

national economies, foreign investments sustain rural livelihoods through the

provisions of a wide range of products and services.

Small and Medium Enterprises and Boko Haram Activities

The incessant attacks by Boko Haram insurgents no doubt impact

negatively on the socio-economic lives of the people. Though, there is the

dearth of quantitative evaluation of the catastrophic attacks, available statistics

has it that between July 25 and February 2011, Human Rights Watch (2012)

reported a total death toll of 935 persons in 164 attacks. It is also reported that

an estimate of 550 people was killed in the bombing and other means; 550

persons were killed in 135 attacks in 2011 alone. While in 2011, at least 500

people were killed in Boko Haram attacks (Amnesty International, 2012).

Apart from the loss of lives, there is also the wanton destruction of property

and businesses worth several billions of naira through attacks and bombing

(Oluwaseun, 2012).

The above scenario has dire consequences for sustainable development

in the regions of attack in particular and Nigeria in general. In the regions

where the bombings are pervasive and the property destroyed potentially and

in real terms drag their economic fortune back by several steps. Besides the

property destroyed, economic life in those regions is automatically grounded

to a halt.

People are no longer free to go about their economic activities for fear

of being killed. This is made worse as several thousands of people have

migrated swiftly to another part of the country or beyond. The overall

implication for sustainable development is that the economy is fast

deteriorating (Ogege, 2013). The murderous campaigns and vicious

onslaughts on individuals and institutions provide a highly unfavourable

business environment for internal and foreign investors. Foreign investment is

a major factor in the achievement of sustainable development.

Existing Small Scale and Medium enterprises is said to be any

business venture that is functioning but not large venture. Any business

enterprise that does not fall under large enterprises and is operating is

described as existing business. Evidently, all medium enterprises are no more

in existence in Maiduguri the state capital of Borno state; this is one of the

major implications of Terrorism.

According to Nafiu, Okpanachi, and Nurudeen (2014), Terrorism

refers to those violent acts that are intended to create fear (terror); are

perpetrated for a religious, political, or ideological goal; and deliberately

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Sahel Analyst: ISSN 1117-4668 Page 104

target or disregard the safety of non-combatants. Based on the above

meaning of terrorism, is obvious that entrepreneurs are non-combatants,

defenseless businessmen and the society at large. There is no business that can

operate in the violent area and there are no enterprises that can thrive and

make profit amidst terrorist.

Terrorism is the unlawful use of force or violence against persons or

property to intimidate or coerce a government or its citizens to further certain

political or social objective. In the Nigerian context, terrorism is violence

against humanity, properties, and businesses as result of some ideologies

which may be political, social and religious in nature. Accordingly, when a

young man is poor, illiterate and unemployed, he becomes a clean slate for

any kind of brainwashing which, according to Marx is more potent when it

comes from religion and aided by culture

Entrepreneurs and Boko - Haram Attacks in Borno State

Historically, Borno State was known as a “Home of Peace”. It was

placed where both indigene and non-indigenes enjoined peaceful coexistence

through successful trade exchange and all were living in harmony irrespective

of the religious and ethnic affiliate. But today, that trust has disappeared with

little or no respect for each other. All this has culminated as a result of the

dread Boko-Haram terrorist group.

There are major businesses that are occupied by non-indigenes in the

state. Some of the businesses include among others are; spare parts business,

electronic and electrical businesses, Bakery industry, and wood industry.

Some of these businesses especially spare parts business are dominated and

controlled by eastern people of the country while essential commodities are

been dominated by indigenes which are mostly Kanuri by the tribe. However,

the recent emergence of Boko-Haram terrorist in the state has distracted the

entire business activities in the environment.

The major Markets in the state, which popularly called Monday

Market and the second largest market called Tashan Baga market both, have

been seriously affected as hundreds of shop owners, especially Southerners

are said to have closed their businesses and left the troubled city. About half

of the 10, 000 shops and stalls in the market were said to have been

abandoned by traders who have fled the city (Alechenu, 2013). Banks and

their customers are also said to be operating under the difficult situation and

have reduced their business hours to guard against being attacked by the

insurgents.

In conclusion, the studies reviewed earlier have shown the significant

importance of entrepreneurial activities in developing the society, which

attracted researchers to the field. Its recommendations will go far with the

current relative peace in the region, recently, to be precise, 12th

, April 2016,

the federal government, through its Minister of Interior Lt-Gen Abdurrahman

Danbazau, said Government is interested in getting the people (IDPs from

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North-East) back to their communities to start fresh life after they were forced

to relocate from their domains by Boko Haram insurgents. It is obvious that

the role of SMEs cannot be ignored; Kilby (1965) suggests that SMEs are the

springboard to inventions, adaptation, and general technological development.

It is against this background that, this research work is centred on reviewing

the impact of insurgency on the people of North-Eastern zone and examining

the role of SMEs in their rehabilitation.

Conclusions

Insurgency is never a good thing. Hence, the need to ensure that, it

been cleared from the society for the conducive atmosphere to enable business

activities successful. This study concludes that security is every body’s

responsibility and should not be left with security officials or its agencies.

Insurgency erupted as a result of many issues as they claim, but the known

fact is that corruption, marginalisation, and bad leadership also are the factors

that contributed. The anti-corruption war should be intensified by enacting

a law that will make it possible for any person caught in a corrupt

transaction to go to jail and forfeit all that he or she has worked for in life.

Leaders should ensure good leadership regardless of where you come from

and as well carry every region/side along.

The insurgency of any kind, nature or structure is affecting all business

operations, especially Small and Medium Enterprises, and international trade.

The Boko Haram has been terrorising Nigeria’s territory as well as the

neighbouring countries like Chad, Cameroon, and Niger that are sharing

borders with Borno state for almost seven years, making businesses in the area

to collapsing level. Empirical evidence has proven but not limited to the

following observations: That, all SMEs in Borno state are no more or left with

near absent operations. It is obvious that non-indigene entrepreneurs are no

longer there due to a devastating increase of Boko-Haram activities in the

state, this has make the environment critical to SMEs and entrepreneurs.

Awortu (2015) testify to that effect, that entire North-eastern zone of the

country have been pulled down by Boko-Haram terrorist and the major

affected ones are SMEs. Many SMEs were destroyed by the insurgents which

led to the loss of job by several people in Borno State. A large number of

SMEs’ owners and/or operators were displaced some relocated to another part

of the country. Based on the reviewed articles even if peace is restored in the

state SMEs’ owners may not be able to continue due to the level of

destructions to their investments.

Recommendations

Based on the above assertion, the study arrives at the following

recommendations:

The study recommends that the Government at all levels (federal, state

and local Governments) should provide a conducive and enabling

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Sahel Analyst: ISSN 1117-4668 Page 106

environment to all SMEs owners/entrepreneurs in the society so that, they will

not fall victim of any sort of terrorist group. Therefore, the first implication of

terrorism on SMEs is that the enterprises may likely seize to operate in the

violent environment; it is evident that Boko-Haram has put down all

businesses in Borno State completely, as a result, Government has lost

financially through revenue paid by the affected enterprises. Secondly, many

people have lost their jobs in the environment, worst heat is indigenes that

have no other place to go.

i. It is evident that, in Borno state, especially in Maiduguri the state

capital, all economic activities have collapsed, the majority of the

people in the area are living in abject poverty, while some still in

Internally Displaced Persons Camps within and outside the state.

The Nigerian state should build strong viable institutions that can

proactively respond to the challenges of security.

ii. The study recommended that BH insurgency has created

unemployment among citizens and economic doom through the

destruction of SMEs in the state. Boko-Haram was successfully

recruiting unemployed youth to its fold by giving them a stipend,

therefore, government and related agencies should as matter of

urgency to do something to avert future occurrence.

iii. The study also recommends that security is everybody business,

hence, SMEs operators/entrepreneurs need to step up in

strategising security threats to avert losing the entire enterprises to

the hand of a terrorist. By implication, losing the company will

lead to frustration to all employees of the entire company.

iv. SMEs by implication will lose all international trade, because co-

traders as it is in the case of Maiduguri in Borno State, has lost it

all customers abroad, especially the neighbouring countries they

share a border.

v. Any long-term solution to the problem must involve a

developmental effort that reduces the inequality experienced by the

youth of the north, and thus also their sense of alienation. Such an

effort does not need to make people wealthy, but it must make it

possible for them to believe that social progress within the

framework of the Nigerian state is possible.

vi. There should be reprioritisation of government expenditure in

favour of poverty alleviation measures including the creation of

job opportunities and other welfare packages.

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