The prolonged #EndSARS protest is taking a huge toll on the economy and businesses as the activity continue to paralyze productive activities.
According to the economists, who put the daily loss in the economy at a minimum N10 billion, lamented at the weekend about the youths across the country who have been on the streets for 12 days in Lagos, Abuja, Kaduna, Owerri, Awka, Aba, Abeokuta, Osogbo, Port Harcourt, Benin and other big cities, demanding an end to police brutality.
In the new #7for7 list, the protesters are demanding institutional reforms, reduction in cost of governance, constitutional amendment, education reforms, health reforms, youth affairs and public office reforms.
Economists and business managers say business decisions, meetings, events, investment conferences and boardroom decisions have been put on hold as the protest spreads.
Former Executive Director, Keystone Bank Limited, Richard Obire, said the protest hit the economy at a time most of the businesses were just adjusting to the impact of the COVID-19 pandemic. He said it is affecting people and goods’ mobility.
According to him, blockage of critical roads to major cities has negative impacts on the economy whose extent of damage has run into billions of naira so far.
Obire said: “The other side is that if the protests lead to a more positive response by the government and good governance, it will be a major enabler of economic activity.
“The benefits or continued impact of the protests will depend on how the government handles its response. For now, the protests have been peaceful and have not degenerated. Foreign investors are happy when the rule of law prevails. They want predictability of policy, sanctity of contract and reduced crime environment. So, if at the end of the protests these things are achieved, foreign capital inflows will be guaranteed.
Director-General, Lagos Chamber of Commerce and Industry (LCCI), Dr. Muda Yusuf, said the protest is crippling businesses and economy, especially the Small and Medium Enterprises (SMEs).
According to him, the SMEs live by daily income and the continued disruption of their businesses lead to huge loss of income and business growth.
“For me, the earlier the government engaged the protesters, the better for the economy. The President should dialogue with the protesters for quick resolution,” Yusuf advised.
An economist and former President, Chairman of Council, Chartered Institute of Bankers of Nigeria (CIBN), Okechukwu Unegbu, said whatever the economy loses will be temporary and could be gained if the expected reforms are instituted.
Unegbu said the protests would make the economy better.
“Look at the economy even before the protests, the interest rates were rising, loan default in banks kept worsening as businesses find it difficult to repay loans, inflation has been rising, making it difficult for people to meet their needs and naira has lost a large part of its value in recent months. The protests will help government and agencies of government to critically look at how to reposition the economy.”
