Assessing the Challenged and Implications of Terrorism to Nigeria Economic Growth: Boko Haram Insurgency

Boko Haram is a notorious extremist Islamist group in Nigeria that aims to enforce Religion in the 19 northern state of Nigerian. The development of terrorist organizations like Boko Haram has been connected to Nigeria's persistently weak economic situation. This research would examine the economic implication of Boko Haram terrorism in Nigeria, to determine the relationship between terrorism and gross domestic product in Nigeria and to investigate the causes and effect of Boko Haram insurgency. The study used time series annually from 1990 to 2019. The study shows that Boko Haram incident has detrimental impact on the country’s economy, particularly in the north east, which is bordered by three countries: Chad, Niger, and Cameroon, where investors are no longer coming to invest. The study used unit root test that is (ADF and PP), lag length criteria, ARDL model that is bounds test, ECM error correction model, residuals diagnostics and diagnostics test. The result revealed that in unit root test ADF that is RGDP, unemployment, poverty and corruption are stationary at level one while life expectancy at birth is the only one is stationary at level. PP result revealed that RGDP, unemployment, poverty, corruption and life expectancy at birth are all stationary at level one. Following the bounds test the F-statistic is greater than the upper and lower bounds test that is we have cointegration and we cannot reject the null hypothesis. The ECM result revealed that the previous year’s error will be corrected in the current year at a speed of adjustment of 76.01%.