Economy

Nigerian economy loses N1.5trn to #EndSARS protests- FDC

The economic cost of the #EndSARS protest  is estimated at N1.5tn, approximately 1.03 per cent of the GDP and 11.47 per cent of the 2021 budget.

The estimation was made by  Financial Derivatives Company Limited in its latest economic bulletin.

“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.

According to FDC via its economic bulletin, .the EndSARS protests magnified existing output challenges and supply chain disruptions.

The bulletin also says headline inflation is projected to rise to 14.5 per cent in October from 13.71 per cent in September.

“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,” it said.

“This means that inflation will be rising for the 14th 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.”

It further proved that commodity prices increased by an average of 25 per cent last month as the protests escalated beyond control.

It said, “About 1,800 trucks of commodities, food supply, finished goods, other raw materials and logistics enter Lagos on a daily basis.

“A noticeable trend during our survey was that highly perishable and seasonal commodities were severely impacted.”

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