The Nigerian Economic Summit Group (NESG) has warned that persistent insecurity across the country is undermining investor confidence and holding back economic growth.

The warning adds to concerns about the business environment as Nigeria moves towards the 2027 general elections.

The private sector backed policy group has repeatedly flagged insecurity as one of the biggest threats to the economy. In its outlook for the second half of 2026, it singled out violence in the north central and north west regions as a major risk. It said this could discourage both domestic and foreign investment and weaken growth in sectors outside oil.

It also cautioned that insecurity in key farming areas could disrupt agricultural output and the movement of goods, keeping pressure on food prices.

The concern comes even as business sentiment has improved. The NESG’s latest business confidence report showed activity rising to a record 117.8 points in September. The group noted, however, that firms still struggle with limited access to finance, irregular electricity, weak infrastructure and insecurity, which it said continue to restrict new investment and raise the cost of doing business.

The NESG projects that the economy will grow by about 4.2 per cent in 2026, with growth expected to pick up to 4.5 per cent in the second half of the year. It says those gains could be dented if security challenges are not brought under control.

The issue is expected to feature prominently at the 32nd Nigerian Economic Summit, which holds in Abuja on October 26 and 27. The NESG has named a secure Nigeria as one of the summit’s priorities, describing insecurity as a major constraint on production, investment and the movement of labour. Discussions are expected to focus on protecting critical economic infrastructure, securing production corridors and improving access to farmland, in a bid to rebuild confidence among businesses and investors.