PEACE ACCOUNTING PERSPECTIVES AND ECONOMIC DEVELOPMENT: EVIDENCE FROM NIGERIA

Abstract

Over the past two decades, global indicators of peace have declined, highlighting the growing economic burden of insecurity. Peace accounting, which tracks and analyzes the costs of violence and peacekeeping, provides insight into these impacts. This study examines the relationship between peace accounting and economic development in the Federal Republic of Nigeria using an ex-post facto design. Secondary data were sourced from the Central Bank of Nigeria’s Statistical Bulletin and Federal Inland Revenue Service reports, covering 42 years (1982–2023), with GDP and tax revenue representing the economy. Short-run results show that the cost of insecurity negatively and significantly affects economic development, while civil unrest has a positive but insignificant effect. In the long run, insecurity exerts a positive and significant impact, whereas civil unrest negatively and significantly influences growth. The model explains the data well, with an R² of 0.99. Findings suggest that prolonged insecurity has hindered Nigeria’s economic progress, while civil unrest continues to pose challenges. The study recommends that government should implement effective measures to reduce insecurity and address the underlying causes of civil unrest through improved governance, social inclusion, and equitable policies. Strengthening peace accounting practices can support policymakers in mitigating the economic costs of violence and fostering sustainable development.