Nigeria’s ransom economy generated at least N7.8 billion for kidnappers and armed groups within one year, according to a new security report that documented 7,825 abductions across the country.
The report by SBM Intelligence, titled The Capture of the Kidnap Economy, found that the victims were abducted in 1,713 kidnapping and kidnap-related incidents between July 2025 and June 2026. At least 1,142 people were also reported killed during the period.
The figures paint a disturbing picture of the Nigeria ransom economy, with kidnapping increasingly functioning as a profitable criminal enterprise and a potential source of funding for armed groups.
Security experts have warned that the billions paid to secure the freedom of victims could be helping kidnappers acquire weapons, expand their networks and finance further attacks.
Nigeria Ransom Economy Earns N7.8bn Despite Lower Demands
One of the most striking findings in the SBM Intelligence report was the difference between the amount demanded by kidnappers and the amount ultimately collected.
Total ransom demands reportedly declined from N48 billion to N22.9 billion. However, the actual amount paid rose sharply from N2.56 billion to N7.78 billion.
The report said this increased the collection rate from 5.35 per cent to about 34 per cent.
The trend suggests that although kidnappers demanded less money overall, they became significantly more successful at collecting ransom from victims’ families and communities.
SBM Intelligence attributed about 90 per cent of the total ransom collected to the Jama’atu Ahlis Sunna Lidda’awati Wal-Jihad faction of Boko Haram.
The group reportedly received around N7 billion from only eight kidnapping incidents.
The concentration of such a large amount of money among a small number of incidents has intensified concerns about kidnapping becoming an important funding mechanism for armed organisations.
Nigeria Ransom Economy Boosted by Major Mass Abductions
The report showed that two major kidnapping incidents accounted for nearly all the N7 billion attributed to the Boko Haram faction.
According to SBM Intelligence, N5 billion was reportedly paid following the abduction of 416 people from Ngoshe in Borno State.
Another N2 billion was reportedly paid in connection with the abduction of 315 pupils and staff of St Mary’s School in Papiri, Niger State.
The report said mass abduction had become one of the most common methods used by kidnappers.
This approach allows criminal groups to capture large numbers of people in a single operation, potentially increasing their bargaining power and the amount of money they can demand.
Zamfara State recorded 92 mass abductions during the period, while Sokoto recorded 76, according to the report.
The impact of these attacks extends beyond the immediate victims.
SBM Intelligence warned that the return of school abductions has serious implications for education, agriculture and public confidence, particularly in communities already affected by insecurity.
Nigeria Ransom Economy Leaves Victims at Continued Risk
The payment of ransom does not always guarantee the release or survival of abducted victims, the report warned.
SBM Intelligence recorded at least six cases in which hostages were reportedly killed after ransom had already been paid.
The finding highlights the uncertainty faced by families who are forced to decide whether to negotiate with kidnappers while waiting for security agencies to rescue their relatives.
The report called for action against the financial structures sustaining armed groups and criminal organisations.
It also urged authorities to address the economic conditions that make recruitment into kidnapping and other violent activities possible.
SBM Intelligence warned that Nigeria could face a more deeply entrenched crisis if authorities failed to confront both the profitability of kidnapping and its underlying causes.
Without a coordinated response, the report said, kidnapping could become firmly established not only as a criminal industry but also as a funding source for groups threatening national stability.
Nigeria Ransom Economy Draws Sharp Security Warnings
Security expert Jackson Ojo described the situation as evidence of a worsening security environment.
He blamed what he called the inadequate response of some government officials for allowing kidnappers, terrorists and bandits to develop kidnapping into a major revenue-generating activity.
Ojo expressed concern about the increasing boldness of criminal groups and referred to reports of bandits giving advance notices to communities and making specific demands.
He also raised alarm over the losses suffered by Nigeria’s security forces during operations against terrorists and bandits, including the deaths of senior military officers.
According to Ojo, the government has a fundamental responsibility to provide effective protection for citizens and prevent criminal organisations from operating freely.
Nigeria Ransom Economy Strengthens Criminal Networks, Expert Says
Former Federal Capital Territory Commissioner of Police and security consultant Lawrence Alobi said ransom payments could strengthen kidnappers and encourage further criminal activity.
Alobi warned that money collected by armed groups could be used to obtain additional weapons and reinforce their operational capacity.
He described kidnapping as increasingly lucrative because of the large sums involved and advocated measures aimed at stopping ransom payments.
However, he recognised the difficult reality confronting families of abducted victims.
Families often make payments because their relatives are in immediate danger and they believe they have few alternatives.
That creates a difficult policy challenge for authorities seeking to weaken kidnappers financially while families remain desperate to secure the release of loved ones.
The latest SBM Intelligence findings show the scale of the challenge confronting Nigeria as kidnappers continue to target communities, schools and large groups of civilians.
With thousands of people abducted within 12 months and billions of naira reportedly paid to secure releases, the Nigeria ransom economy has become a major security and social concern.
Experts say the response must go beyond reacting to individual kidnappings. They argue that authorities need to disrupt financial networks, strengthen intelligence, protect vulnerable communities and address the conditions that allow armed criminal groups to recruit and operate.
Unless those measures are implemented effectively, the growing Nigeria ransom economy could continue to fuel insecurity and make mass abduction an increasingly profitable enterprise.
