Journal of Economics and Sustainable Development www.iiste.org ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online) Vol.6, No.16, 2015 94 The Effect of Insurgency on Borno State Economy (2008 – Oct. 2014) Mohammed Danladi Tukur Ahmed Funmilola Fausat * Department of Economics, University of Maiduguri, Borno State, Nigeria Abstract Borno State is the only State in Nigeria that is bordered by three countries. These include Cameroon, Niger and Tchad Republic. There exist a healthy trade relationship between the State and her international neighbors. Hundreds of thousands tonnes of grains, livestock and other consumables flow between Borno and her bordering trading partners. Despite this advantage, the State depends on monthly allocation from the centre to keep it running. The scenario is further compounded by insurgency. This Study analyzed the effect of insurgency on the trade relationship between Borno State and her immediate neighbors. The study utilized both primary and secondary data. The primary data were generated through the administration well structured questionnaire and oral interview. conducted on 300 respondents from each of each of the State Local Government Areas (LGAs). The respondents were purposively selected. Interview was also conducted on traders in the two major grain markets in Maiduguri Metropolitan Council and Jere Local Government Area. Secondary data was obtained from various write ups with similar inclination. Simple descriptive method was used in the analysis of data. Study revealed that so far, the insurgency has claimed 28,209 lives. The number of people either abducted or missing stood at 2,751. It also revealed that prior to the insurgency, annual grain flow between Borno and her trade partners was 294,940 tonnes however, the flow of grain decreased to 94,500 tonnes by second quarter of 2014. The magnitude of the decrease in the flow of grain as well as number of death recorded showed that religious insurgency affected all spectrum of the Borno State economy. Specifically all international trade routes were no more accessible. Agricultural activities grounded as farmlands, rivers and fish ponds were abandoned. The study also revealed that the major cause of the insurgency aside of corruption and arrogant display of affluence by the elitist class was unrealized political will. Study recommended that genuine development and appropriate integrative program should form basis for governance. Keywords: Insurgency, Boko haram, Grain market, Trade, Economy, Borno State 1. Introduction Borno State, on the international front is bordered by three countries namely: Niger, Tchad and Cameroon. These countries constitute major trading partner to the State in particular and Nigeria in general. Substantial amount of the Sstate’s livestock requirement comes from Tchad and Cameroon. Borno State also provides ready market for her neighboring countries in terms of agricultural produce. Thus, there is a buoyant cross-border trade between the State and her international neighbors. On the local front, the state is bordered by three states namely, Adamawa, Gombe and Yobe. Internally, the State is composed of 27 local government areas and each of these Local Government Areas (LGA) has peculiar market day’s arrangement with distinct traded products. The relationship between the people of Borno and those of her foreign neighbours pre-date Nigeria independence. It is pertinent to note that prior to the 1961 United Nation (UN) plebiscite, Borno State was part of Cameroon. The boundaries that separate the two countries are blurred due to the fact that families from both sides of the frontier interact as if there were no international demarcation (Balami 2006). From the Cameroon side there is Fotokol, Kolofata, Amchide and Achigachia that can easily be accessed through Ngala LGA. From Bama (Nigeria), traders/households can easily access Banki. There is Banki town in both side popularly known as Banki Nigeria and Banki Cameroon. So the movement of people is unhindered, which is a favorable condition for international trade. International trade allows for free movement of factors across border. This is also enhanced by ECOWAS protocol which permits free flow of goods and services within and between member nations. The compositions of items of trade between countries in the sub-region are basically agricultural products. These include millet, maize, sorghum, rice and livestock, in addition to great potentials in tourism and mineral resources. Thus, trade activities have been on the increase for quite some time between Borno, Niger, Tchad, and Cameroon. However, insurgency in the north eastern part of Nigeria may have altered the course of trade between these neighboring countries. Over the years, Nigeria has had her fare share of socio-economic disruption; Boko Haram in the North- East; Kidnappings and Oil Pipelines Vandalism in the East and South/South; the Medical terrorism “EBOLA” in the West. Each and every one of these anti-social vices has disrupted economic activities in Nigeria. Of the aforementioned anti-social variables, religion induced crises seem to pose greater challenges in the study area. The major religious insurgency in the North Eastern part of Nigeria is the one championed by Boko Haram Sect. Prior to the advent of the religious sect, Borno State is noted for its boisterous international trade.