- The 10-day nationwide hunger protest in Nigeria brought losses to the economy
- Amidst reports of looting and vandalism, businesses lost revenue, especially as some states declared curfew to quell violent attacks
- The Nigerian capital market was also affected as investors lost N235 billion on the first day of the protest
The nationwide hunger protest in Nigeria tagged, #EndBadGovernance, which began on Thursday, August 1, has not been without businesses and the economy suffering losses.
On the first day of the protest, businesses, like malls, banks, shops, petrol stations, etc., were shut across cities and states in the country for fear of violence and destruction, causing business and supply chain disruptions.
Following violent actions by some protesters in some states in the northern part of the country, some state governments have declared curfews, further straining the economy as businesses lose revenue.
Prior to the protest, analysts like the Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf, said the nation will suffer economic losses in billions of naira given its already fragile state.
Yusuf, in a statement on Sunday, July 28, said the protest will inflict an estimated daily loss of N400 billion if not properly managed.
“The protests could inflict an estimated daily loss of N400 billion, if not properly managed. There is a high risk of shutdowns and disruptions in major sectors of the economy. These include trade and commerce, manufacturing, entertainment, transportation, logistics, financial services, the hospitality industry, agriculture, aviation, ICT and construction sectors.
“This is in addition to risks to the lives and properties of innocent citizens and corporate bodies. The safety of government assets is also at risk.”
He noted that the protests should not be prolonged as many Nigerians depend on daily income for survival and to avoid the risk of the protest being hijacked by thugs or degenerating into chaos.
“Prolonged protests create opportunities for hoodlums, miscreants, and other criminal elements in the society to build momentum to unleash mayhem and destruction on the country.
“Employees in this space are dependent on daily income and any disruption to their economic activities beyond 24 hours could snowball into major social unrest. This underlines the country’s vulnerability to prolonged protests.”
Economic loss of protests can’t be estimated – Minister
As the 10-day nationwide protests progressed despite President Bola Tinubu calling for its end, the Minister of Economic and Budget Planning, Abubakar Atiku Bagudu, said the economic losses and lives lost to the protests cannot be estimated.
At the sidelines of the African Caucus 2024 meeting in Abuja, Bagudu said the President Tinubu-led administration has taken some economic measures that have short-term pains but long-term gains.
He said, “You can’t even put an estimate because somebody has lost his life. How can you quantify that? That is why sometimes even those who have a noble intention of doing something, I always encouraged them to be hesitant because there are people who do not have such noble intention that can always hide behind the desire for people to express themselves to create havoc, to harm others to even go beyond that and even create greater social disruptions. I don’t have an estimate about the damage, but one life loss is big enough.
“The government took measures that it believed will yield a greater tomorrow. But sometimes those measures come with short term costs and, understandably, some segment of society feels that maybe we should have done things differently, or it has taken too long and we have listened, we are mindful.”
Businesses count losses after protests
The Kano State Chamber of Commerce, Mines and Agriculture (KACCIMA) said businesses in the commercial city lost over N100 billion within the first five days of the protest as businesses were shut down.
A former Deputy President of the chamber, Usman Darma, said, “Seventy per cent in the state are into commerce and business, while 25 per cent of neighbouring African countries trade with Kano. With the current situation, businesses have been shut down.
“Kano State is the worst hit. So, aside from looting and vandalism of properties, the state incurred losses of over N100 billion minimum within the five days.”
Also, the Abuja Chamber of Commerce and Industry (ACCI) said businesses in the Federal Capital Territory (FCT) will have a hard time recovering from the losses suffered due to the protest.
Director-General of ACCI, Agabaidu Jideani, said, “The Federal Capital Territory has experienced significant financial losses due to the recent #EndBadGovernance protests with costs running into hundreds of millions of naira.
“The demonstrations led to the shutdown of major business areas, such as markets and shopping malls in the city and were marred by attacks from hoodlums, resulting in extensive property damage, looting of closed shops and increased security expenses.
“Particularly affected were businesses in Lugbe axis and Mararaba area of Abuja, which reported incidents of vandalism and looting by miscreants.”
Reacting to the protest, President of the Lagos Chamber of Commerce and Industry (LCCI), Gabriel Idahosa, said it could shake confidence in the business climate as investors will shy away from long-term investments.
He said, “Local investors may decide to leave their monies in fixed deposits and watch how things turn out. They may decide to suspend some investments.”
In his assessment of the protest, the CEO of CPPE, Muda Yusuf, said the violent turn of the protest in some states elevated risk to life and property.
“The economies of many states were completely grounded, leading to huge economic losses. The risks to life and properties have become significantly elevated,” he said.
The capital market wasn’t spared
The local bourse also felt the impact of the nationwide protest. On the first day of the protest, the capital market recorded its fourth day of consecutive slump of the week, decreasing by 0.42 per cent and investors losing N235 billion at the close of the day’s trading session.
The day’s trading, which was the first for the month of August, saw the Nigerian Exchange Limited (NGX) All-Share Index decrease to 97,359.76 points from the previous day’s 97,774.22.
The equities market capitalisation, on the other hand, reduced to N55.278 trillion from N55.513 trillion the previous day as a total of 565,116,303 units of shares valued at N8,530,916,819,.09 were traded in 6,821 transactions.
Notably, the shares of Oando Plc lost N2 or eight per cent at the end of the day’s trading from N25 to N23. Also, the shares of Dangote Sugar Refinery lost N2.85 or 7.67 per cent from N37.15 the previous day to N34.30.
Although the market recorded a rebound in its trading sessions, it is without doubt that the losses it suffered impacted the bourse.
Nationwide protests: Banks warn workers to remain vigilant
Meanwhile, TheRadar reported that banks and other financial sector employers in Nigeria advised workers to stay vigilant during their duties following the nationwide protest.
The Association of Senior Staff of Banks, Insurance, and Financial Institutions (ASSBIFI) said it hoped the protest would remain peaceful and not be hijacked by hoodlums. It also urged employers in the financial services sector to sensitise members to be cautious and situationally aware before embarking on any activity.
