Effect of Substance Abuse on Nigeria’s Economic Performance

The purpose of this study is to investigate the effect of substance abuse on the real growth rate in Nigeria between 1993 and 2017. Specifically, it examines the period-based impact of substance abuse prevalence and the rehabilitation of individual drug addicts on the actual growth rate of the Nigerian economy. To achieve this, the study employs autoregressive distributed lag (ARDL) and co-integration/bound test techniques to analyze the data obtained from secondary sources, including the National Drug Law Enforcement Agency (NDLEA), National Bureau of Statistics (NBS), and Federal Ministry of Finance. Preliminary tests and correlation analysis were also conducted. The findings reveal that substance abuse has a significant negative impact on economic performance, whereas the rehabilitation of individual drug addicts has a significant positive impact. However, in the long run, there was no significant impact on the Nigerian economy. These results suggest that while immediate efforts to curb substance abuse and rehabilitate addicts can yield positive economic outcomes, long-term strategies need to be reassessed for sustained economic growth. In conclusion, this study underscores the importance of addressing substance abuse not only as a public health issue but also as a critical factor affecting economic performance. The findings provide valuable insights for policymakers, drug control agencies, and economic planners, highlighting the need for comprehensive and integrated approaches to combat substance abuse and support rehabilitation efforts. This work contributes to the limited literature on the economic impact of substance abuse and serves as a reference for future research in health economics and macroeconomic analysis.