Protests: Nigeria’s Economy Declines Significantly Amid Widespread Curfews

The past five days have been extremely challenging for Nigeria and its economy amid widespread hunger protests.

Security Concerns Escalate

Security alerts have intensified across various states, particularly in the North West of Nigeria. Reports from police and government authorities indicate a surge in property destruction and shop looting in Kaduna, Plateau, and Bauchi, as hooligans exploit the protests to cause chaos. Similar incidents have occurred in Kano State, where police arrested a tailor responsible for mass-producing Russian flags, which some rioters carried. The Russian Embassy in Nigeria denied any involvement in these activities.

Government and Military Response

The Chief of Defence Staff, General Christopher Musa, has labeled the display of Russian flags in Nigeria as treasonous, pledging to crack down on those responsible. This comes amid ongoing violence on Day 5 of the #endbadgovernance protests, prompting Bauchi, Kaduna, and Plateau states to impose 24-hour curfews. Earlier, states such as Borno, Kano, Katsina, Jigawa, and Zamfara had also declared curfews to prevent further anarchy.

Economic Impact

The economic repercussions have been severe. The Association of Small Business Owners of Nigeria (ASBON) estimates that N600 billion has been lost over the past five days. The Centre for the Promotion of Private Enterprise (CPPE) warns that the country could lose N400 billion daily due to the protests. Investor confidence has been shaken, with losses amounting to N92 billion on the Nigeria Exchange Limited at the close of Monday’s trading session. The Eurobond market also saw a significant sell-off amid the unrest.

Government’s Call for Peace

President Bola Ahmed Tinubu, in a Sunday broadcast, appealed for the suspension of protests to allow for dialogue. Despite this, major businesses in Abuja have seen low patronage, and fuel queues persist in Abuja, Niger, and Nasarawa due to disruptions caused by the protests.

Financial Experts’ Opinions

Financial Analyst Gbolade Idakolo emphasized the need for the government to create a forum to address protesters’ demands genuinely. He criticized the government’s failure to alleviate citizens’ suffering despite significant allocations and urged that any promises made should be reflected in tangible improvements, such as reduced food prices.

Calls for Protest Suspension

Muda Yusuf, Director of the CPPE, stressed that the longer the protests continue, the greater the risk to Nigeria’s economy. He called for the protests to be called off to prevent further economic decline, urging the media to avoid creating panic. Similarly, Dr. Uju Ogunbunka, President of the Bank Customers’ Association of Nigeria, highlighted the severe impact of the protests on private businesses and core economic activities.

In conclusion, the ongoing protests have not only led to significant economic losses but have also raised serious security concerns. Both government officials and financial experts call for an urgent resolution through dialogue and concrete actions to address the root causes of the unrest.