How the Nigerian Civil War and the £20 Compensation Policy Affected Southeast Nigeria’s Economy

The Nigerian Civil War, also called the Biafran War, lasted from 1967 to 1970. It was one of the darkest times in Nigeria’s history, and the Southeast region where Biafra was declared  suffered the most. Beyond the human lives lost, the war also deeply affected the economy of the region.

In this article, we look at how the war damaged trade, businesses, and infrastructure in Southeast Nigeria, and how those effects are still being felt more than 50 years later

Life in Southeast Nigeria Before the War

Before the war, the Southeast was a region full of business and energy. People were known for trade, manufacturing, and creativity. Cities like Onitsha, Aba, and Enugu were booming. Onitsha had one of the biggest markets in West Africa. People traveled from far places to buy and sell goods there. Aba was famous for small industries. People produced shoes, clothes, bags, and household items. Enugu was a growing city with industries and coal mining activities.

There were good roads and railway lines connecting towns. Electricity wasn’t perfect, but it was better than in many other regions. Many families ran their own businesses and lived comfortably.

During the War (1967–1970)

When the war broke out in July 1967, everything changed overnight. Trade came to a halt. The Nigerian government placed a blockade around Biafra, cutting off food, medicine, and goods. Businesses collapsed. Shops closed, factories stopped working, and raw materials couldn’t come in. Infrastructure were also destroyed, roads, bridges, schools, and markets were bombed or abandoned.

Families lost their homes and income. People were hungry and sick. Some fathers, mothers, and even children were forced to join the Biafran army. Many never came back. The war left the southeast region in ruins.

After the War (From 1970)

When the war ended in January 1970, the Nigerian government said there would be “no victor, no vanquished.” This was meant to promote peace and unity, but for many people in the Southeast, recovery was extremely difficult.

The £20 Policy

After the war, the federal government gave each person only £20 in compensation, regardless of how much money they had before or during the conflict. This policy left many Igbo families nearly broke, forcing them to rebuild their lives from almost nothing. Despite this huge setback, many families did not give up. Through hard work, determination, and resilience, some went on to rebuild businesses, grow wealth, and become successful entrepreneurs. Over time, several of these families rose from the ashes of the war to become billionaires and influential business leaders, proving the strength and spirit of the Southeast people.

Lack of Support for Infrastructure

After the war, many public buildings, roads, and schools in the Southeast remained broken or untouched. While other regions moved forward with development, the Southeast struggled with poor infrastructure and very little help from the government.

Even today, many communities still don’t have good roads, steady electricity, or running water.

Long-Term Effects Still Felt Today

More than 50 years after the war, the economic scars can still be seen.

Lost Business Leadership: Before the war, the Southeast led in trade and small-scale manufacturing. But many businesses didn’t recover, and the region lost its top spot.

Low Federal Investment: For decades, the region has received less funding for roads, hospitals, and education than some other parts of Nigeria.

Migration: Because of fewer job opportunities at home, many Igbo people have moved to Lagos, Abuja, and even abroad to seek better lives.

Distrust in Government: Many people from the region still feel left out or treated unfairly, especially when it comes to government appointments and development projects.

50+ Years Later! What Has Changed?

In spite of the challenges, the people of Southeast Nigeria have continued to push forward. Their strength, business spirit, and hard work have helped the region rise again in many ways.

Nnewi has grown into a strong industrial town, producing car parts, motorcycles, and machinery.

Aba is back as a center of creativity and production with shoes, bags, clothes, and even tech solutions.

Igbo entrepreneurs have built successful businesses across Nigeria and around the world in markets, real estate, hospitality, manufacturing, and more.

Rising From £20 to Billions

After the war, many families faced huge challenges rebuilding their lives with very little help. The government’s £20 policy meant people had to start over almost from scratch.

However, through hard work, determination, and smart business sense, many from the Southeast slowly rebuilt their lives and communities. Over time, this spirit of resilience led to the rise of successful business leaders and entrepreneurs. Some of the most well-known figures, like Cletus Ibeto of Ibeto Group and Innocent Chukwuma of Innoson Motors, started their businesses years after the war. Their success stories show how the Southeast’s hardworking people turned difficult beginnings into great achievements.

What Still Needs to Be Done?

Even with all the progress, the Southeast still lags behind in some key areas:

Roads and infrastructure are still poor in many places.

Electricity is unreliable, making it hard for industries to grow.

Federal projects in the region are limited or abandoned.

Youth unemployment remains high, and many young people still have to leave the region to find work.

There is still a big need for government support, better policies, and equal opportunities.

Conclusion

The Nigerian Civil War left a heavy mark on Southeast Nigeria, a region that was once full of life and trade. The damage to infrastructure, the unfair £20 policy, and years of poor investment have slowed the region’s growth. But the people of the Southeast have refused to give up. They have used their talents, businesses, and education to rebuild what was lost and even go beyond what anyone thought was possible.

With better support from the government and fair treatment, the Southeast can do even more. The story of how the Igbo people rose from war, hunger, and £20 to create billion-naira businesses is proof that the region has what it takes to succeed.