Monday 9 November 2020

“#EndSARS protest disruption costs economy N1.5tn”


According to the Financial Derivatives Company Limited, the recent #EndSARS protest cost the Nigerian economy an estimated N1.5tn.

In the month of October, Nigerians took to the street in numbers to protest against police brutality and other human right abuses by the law enforcement agency.

According to the Financial Derivatives Company Limited, the protest led to a massive disruption on the economy.

“This suggests that the economic recovery path could be longer than anticipated . Massive investment in job


elastic sectors with minimal control on the pricing mechanism will serve as catalysts and would ensure a sustained ‘ take – off ’ , ” the FDC , led by foremost economist Bismarck Rewane, said in its latest economic bulletin.

“ This coupled with money supply saturation , higher logistics costs , CBN ’ s forex rationing as well as forex restriction for imported finished goods have heightened inflationary pressures , ”

According to the FDC analysts, headline inflation is projected to rise to 14 .5 per cent in October from 13.71 per cent in September.

They said,

“This means that inflation will be rising for the 14 th consecutive month . It would also be the highest level in 33 months.

“Food inflation will be the most affected as it is estimated to climb to 17 .05 per cent . Other sub – indices are also expected to move in the same direction.”

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