Impact of Security Spending on Unemployment Rate in Nigeria

This study explores how defense and internal security spendings affect unemployment rates in Nigeria. The time series data analysis covered the period between 2000 to 2023 in this study. The research team used the Least Squares Regression method to assess how government security spending affected unemployment rates. It was revealed from the findings that defense spending (LOG(DEF) has a positive coefficient of 0.0866 which indicates a slight increase in unemployment, when defense expenditure increases. This relationship, however, is insignificant (P-value=0.2804). On the contrary, internal security spending (LOG(INS) exhibited a negative coefficient of -0.0085, implying a minimal reduction in unemployment when internal security allocations are increased, with a P=value of 0.9154 which is equally statistically insignificant. These results indicate that current allocations to the security sectors may not significantly impact unemployment rates. The constant term, however, is statistically significant (p-value = 0.0000), implying that other unaccounted factors significantly influence unemployment trends in Nigeria. The research shows how insufficient accountability and transparency in security operations could lead to greater economic instability while also raising unemployment rates in the nation. Understanding how security spending affects unemployment rates is vital considering Nigeria's current unemployment challenges. The research stresses the importance of strategically managing financial resources to promote an economic-friendly atmosphere based on data analysis. The research indicates that government alignment of security expenditures with broader economic development objectives creates lasting effects for unemployment reduction and national security enhancement.