Nigerians paid N2.56bn as ransoms to kidnappers in a year as it thrives as a lucrative business

Nigeria’s kidnap-for-ransom economy has hit record levels, with citizens paying at least N2.56 billion between July 2024 and June 2025 to secure the release of abducted relatives and community members. This marks a sharp 144% year-on-year increase compared to N1.05billion paid in the same period of 2024. According to SBM Intelligence’s latest report on the economics of kidnapping, abductors demanded N48 billion in ransoms during the period, but only 5.35% was actually paid. In total, 4,722 Nigerians were kidnapped in 997 incidents, while 762 people lost their lives in abduction-related violence. The surge in ransom payments shows how Nigeria’s insecurity is directly shaped by macroeconomic instability. In 2024, families paid N1.05 billion, but currency depreciation meant this was valued at only about $655,000. By 2025, ransom payments climbed to N2.56 billion, yet the dollar equivalent rose only slightly to $1.66 million.
This mismatch between naira and dollar values highlights the impact of inflation and exchange rate pressures. Kidnappers now demand higher sums in local currency to protect their earnings from the naira’s weakening value. Families, in turn, are forced to part with larger amounts of money, even as household purchasing power collapses under double-digit inflation.
Negotiations often start with outlandish demands. For example, kidnappers in Delta State asked for N30 billion in exchange for three abducted family members — a single case that represented 62.5% of all ransom demanded nationwide. Payments, however, are usually beaten down, sometimes supplemented with food items or basic goods when cash is scarce. Despite this, the outflow from households continues to rise, leaving communities financially drained. The Northwest remains the country’s kidnapping hotspot, accounting for 62% of victims in the review period. Zamfara recorded 1,203 abductions, Kaduna 629, and Katsina 566. Katsina also suffered the highest civilian fatalities, underscoring the deadly dimension of ransom-seeking in the region. High-profile incidents continue to skew national totals. In Borno, the abduction of Justice Haruna Mshelia resulted in a ransom payout of N766 million almost 30% of the total collected nationwide. Islamist groups such as Boko Haram and its affiliates benefitted significantly, taking roughly one-third of ransom proceeds. This convergence of crime and ideology has made kidnapping not just a security problem but also a financing model for insurgency.
For ordinary Nigerians, the story is different. Many families scrape together smaller sums, but the effect is no less severe. These payments often wipe out life savings, push households into debt, or trigger community crowdfunding, creating an informal system of financial drain that weakens social safety nets.