Nigeria’s kidnapping business was fiercer between July 2024 and June 2025, morphing into a structured, profit-driven industry that now rivals legitimate business activities in scale.
According to SBM Intelligence, at least 4,722 people were abducted in 997 incidents across the country within the period, with kidnappers demanding nearly N48 billion and receiving verified payments of N2.57 billion ($1.66 million).
The report warned that ransom payments are not only draining household wealth but also weakening business confidence and stunting investment.
Criminal groups are now inflating ransom demands in naira to offset currency erosion, essentially mirroring corporate behavior in a high-inflation economy.
The North-West remains the most dangerous region for both residents and businesses, accounting for 42.6 percent of incidents and 62.2 percent of victims.
Zamfara alone recorded over 1,200 victims, followed by Kaduna and Katsina. The region’s combination of ungoverned rural territory and entrenched bandit syndicates allows for industrial-scale abductions. By contrast, the South-West saw just 5.3 percent of incidents and 3 percent of victims, offering a relative safe haven for investors though the perception of national risk still weighs heavily on corporate decision-making.
Mass abductions defined as incidents with more than five victims made up nearly a quarter of all cases, overwhelmingly concentrated in the North. Villagers are increasingly forced into labour on bandit-controlled farms and mining sites, suggesting that kidnapping has expanded beyond ransom into broader economic exploitation.
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Regional variations in ransom dynamics highlight the financial sophistication of kidnappers. In the South-South, one gang in Delta State demanded a staggering N30 billion, reflecting the oil-rich region’s exposure to high-value targets. In the North-East, ransom payments reached their peak, largely because N766 million, almost 30 percent of the national total, was reportedly paid for the release of Justice Haruna Mshelia, kidnapped by a Boko Haram-linked faction.
Islamist insurgents are increasingly treating kidnapping as a revenue stream, with ransom proceeds funneled into logistics and arms procurement.
Religious leaders remain frequent targets. At least 17 Catholic priests were abducted during the period, with N460 million demanded and N70 million paid. Although quick settlements may have reduced clergy fatalities, intermediaries face growing risks; some have been killed or kidnapped during ransom exchanges.
The broader economic consequences are far-reaching. Kidnapping exacerbates food inflation by disrupting agricultural output in rural areas, where farmers abandon fields or pay ‘taxes’ to armed groups. Businesses in affected regions face higher costs from relocation, insurance, and security outlays. For small enterprises, the burden of hiring private guards or making informal payments often forces closure. Larger firms curtail expansion, particularly in high-risk industries like mining, logistics, and agribusiness.
For foreign investors, the data confirms long-standing fears: Nigeria’s insecurity problem is not only persistent but increasingly commercialised. The ‘ransom economy’ competes directly with formal economic activity, redirecting billions of naira from household consumption and corporate investment into criminal networks. SBM Intelligence argued that this diverts liquidity away from the real economy while financing terrorism, further damaging Nigeria’s sovereign risk profile.
Public confidence in security forces continues to deteriorate. Roughly 68 percent of Nigerians surveyed rated security performance poorly, noting that the situation had led to the proliferation of vigilante groups. While these groups provide localised relief, they complicate the security architecture and, in some cases, engage in their own extortion practices, creating further uncertainty for businesses.
The outlook is bleak without coordinated reforms. Unless the government disrupts ransom payment flows, strengthens rural governance, and stabilises the macroeconomy, kidnapping risks becoming permanently institutionalised. Already, the line between organized crime and insurgency is blurring, with bandits and militants leveraging abduction proceeds to fund arms, recruit fighters, and control territory, the report noted.
