Overview
Unit: USD Millions
|
|
2019 |
2020 |
2021 |
2022 (Estimate) |
|---|---|---|---|---|
|
Total Market size |
20,603 |
19,902.5 |
35,750 |
47,250 |
|
Total local production |
701 |
677.16 |
825 |
1,100 |
|
Total exports |
1,200 |
1,159.2 |
1,315 |
1,475 |
|
Total Imports |
21,102 |
20,384.53 |
36,900 |
42,121 |
|
Imports from the U.S. |
12,098 |
11,686.68 |
32,630 |
38,630 |
|
Exchange rate |
360 |
405 |
410 |
417 |
Total Market Size = (Total Local Production + Total Imports) – (Total Exports)
Data Sources:
Total Local Production: National Defense Academy (NDA)
Total Exports: National Bureau of Statistics Trade Data
Total Imports: Security Practitioners’ Association of Nigeria, Industry practitioners, National Bureau of Statistics
Imports from U.S.: U.S. Census Bureau
Nigeria National Bureau of Statistics
Over the years, Nigeria has experienced an increase in the global terrorism indexes. In the 2022 Global Peace Index produced by the Institute for Economics & Peace, Nigeria ranked 143 among 163 independent nations and territories according to its level of peacefulness.
As of 2021, the terrorism index in Nigeria indicator stood at 8.23. The index measures the direct and indirect impact of terrorism on a scale from 0 (no impact) to 10 (highest impact). Nigeria is said to be one of the countries with the highest terrorism threat levels in the world. Total deaths from terrorism in Nigeria fell to 448 in 2021, the lowest level since 2011.
Several militant groups are active in the country, leading to attacks on both civil and military targets. The Northern region has been hit with waves of insurgency, previously from Boko Haram (BH), and more recently and vigorously from Islamic State of West African Province (ISWAP). States within the South-East South-South corridors in the country experience the presence of vigilante and militia groups. Community clashes are also increasing in areas such as Kaduna (northern Nigeria). According to SBM Intelligence, kidnappings in the country have increased. Between June 2011 and the end of March 2020, at least $18 million was paid to kidnappers as ransom.
Between 2015 and 2019, Nigeria’s rate of unemployment doubled to about 23.5% of the total adult population. The unemployment rate rose from 27% in June 2020 to 33% in December 2020. The Nigerian Economic Summit Group projects an unemployment rate of 37% in 2023.
Recent years have been a challenging for Nigerians regarding security as the country combats several forms of crime and terror – across all its 36 states. The high rate of unemployment is a key driver of insecurity. With insecurity being a major issue, the Nigerian government has taken steps to mitigate the issue. They took possession of 12 Super Tucano A-29 aircraft for the Nigerian Airforce in its fight against insurgency. These aircraft were purchased from the U.S. at a cost of $500 million. The government of Nigeria has also requested to buy twelve (12) AH-1Z Attack Helicopters. Along with related equipment, the helicopter Foreign Military Sale (FMS) is reported at a cost of $997 million. The proposed acquisition will better equip Nigeria to contribute to shared security objectives, promote regional stability and build interoperability with the U.S. and other Western partners.
Shown below are the capital expenditure items across different branches of the country’s security infrastructure.
Army
- Purchase of “A” Vehicles – $6 million (2.45 billion naira)
- Purchase of arms for operation - $7.3 million (3.02 billion naira)
- Purchase of ammunition for operations – $6.3 million (2.60 billion naira)
- Purchase of “B” Vehicles – $2.9 million (1.22 billion naira)
- Operational kitting – $2.8 million (1.16 billion naira)
- General kitting - $4.8 million (1.76 billion naira)
Navy
- Procurement of 32-meter Hydro Survey Landing Ship – $8.6 million (3.53 billion naira)
- Procurement of Landing ship Tank – $15 million (6.15 billion naira)
- Procurement of 3xAW109 Helicopters - $15.3 million (6.39 billion naira)
- Procurement of 4x 17M Inshore Patrol Craft - $367,000 (151 million naira)
- Procurement of Arms, Ammunition, webbing and Equipment – $1.95 million (800 million naira)
Airforce
- Part payment for purchase of 1 X JF -17 Thunder Aircraft and support equipment – $9.8 million (4.04 billion naira)
- Procurement of Targeting POD for JF-17 Thunder Aircraft - $9.1 million (3.76 billion naira)
- Procurement of various aircraft, arms and ammunition - $1.5 million (650 million naira)
- Procurement of various aircraft spares – $1.37 million (566 million naira)
$28.8 billion (12 trillion naira) was budgeted for security in the last seven years (2016-2022). In the 2021 budget, the entire security sector’s allocation was $4.8 billion (1.97 trillion naira), representing a 14% increase from the $4.3 billion (1.78 trillion naira) allocated in 2020. In the 2022 budget, the entire security sector’s allocation was $5.7 billion (2.41 trillion naira) representing 15% of the entire budgetary projections.
Private individuals and organizations are important stakeholders in the security and safety market in Nigeria. An increasing number of homes and offices are fitted with surveillance cameras and closed-circuit cameras (CCTVs). Demand for automated gate systems is also on the rise in upscale areas in Nigeria, as well as car trackers and smart systems such as doorbells.
Cyber security is a growing segment in the Nigerian market, with a particular focus on financial institutions and other related companies. Organizations that also process large data are prospective targets of cyber criminals.
Leading Sub-Sectors
Leading subsectors in the security and safety sector include security equipment and security training.
U.S. companies are the preferred choice of suppliers for high-profile security products purchased by public and private sector stakeholders in Nigeria. Equipment such as military jets, unmanned aerial vehicles, explosive detection equipment, surveillance systems, body scanners, body cameras, and covert cameras are heavily sourced from U.S. manufacturers.
Sale of surveillance equipment to state governments and private organizations are additional opportunities for U.S. companies – including aerial surveillance equipment for the monitoring of state boundaries and forests.
Security and safety training for government officials, private security companies, and organizations provide opportunity U.S. companies. U.S. companies can bid directly or through public tenders. Tender offers are made available to the public via the respective agencies or through the Bureau of Public Procurement (BPP).
Opportunities
U.S. companies have an advantage over other countries for the supply of security equipment to Nigerian entities. Several opportunities exist for U.S. companies to supply security equipment to the Nigerian government through procuring security agencies as listed in the overview section of this report.
Local Trade Shows
Global Security Exchange
September 12 – 14, 2022
Virtual
Securex West Africa
May 9 -11, 2023
Landmark Event Center
For more information, e-mail: Banksharon Nwaneri, U.S. Commercial Service, U.S. Consulate General, Lagos, Nigeria at Banksharon.Nwaneri@trade.gov