SECURITY MANAGEMENT, BUSINESS PROCESS RE-ENGINEERING, AND ECONOMIC DEVELOPMENT IN NIGERIA: A TIME-SERIES ANALYSIS, 1999–2023

Abstract

This study examined the effect of security management and business process re-engineering on economic development in Nigeria using time-series data covering the period 1999 to 2023. The persistent challenges of insecurity and operational inefficiencies in Nigeria have raised concerns about their implications for sustainable economic growth, necessitating empirical investigation. The study adopted a quantitative research design and employed secondary data sourced from the World Bank, National Bureau of Statistics, and Central Bank of Nigeria. Economic development was measured using GDP growth rate and per capita GDP, while security management was proxied by a composite security management index and business process re-engineering by efficiency and productivity indicators. Inflation rate, foreign direct investment, and government expenditure were included as control variables. Data analysis was conducted using E-Views, applying unit root tests, Johansen cointegration test, Autoregressive Distributed Lag model, and error correction mechanism. The unit root results revealed a mixture of I(0) and I(1) variables, justifying the use of the ARDL approach. The cointegration test confirmed the existence of a long-run relationship among the variables. The long-run results indicated that security management and business process re-engineering exert positive and statistically significant effects on economic development, while inflation had a negative effect. Foreign direct investment and government expenditure were found to positively influence economic growth. The error correction term was negative and significant, indicating a strong adjustment mechanism toward long-run equilibrium. In the short run, improvements in security management and business process efficiency also positively affected economic growth. The study concludes that effective security management and efficient business process re-engineering are critical drivers of economic development in Nigeria. It recommends integrated policy interventions that strengthen security institutions, promote organizational efficiency, and ensure macroeconomic stability to achieve sustainable economic growth.