EndSARS Impacted Nigeria’s Economic Recovery Path, says Rewane’s FDC

The #EndSARS protest and the attendant chaos is estimated to have cost the nation N1.5tn, according to Financial Derivatives Company Limited (FDC).
FDC says that the development means 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, said in its latest economic bulletin.
In October, a large number of Nigerian youths protested for more about two weeks against the activities of the banned Special Anti-Robbery Squad.

Also Read: #ENDSARS: Nigeria Loses N700bn to Protests, Unrest – LCCI

Led by foremost economist Bismarck Rewane, the FDC said the protests magnified existing output challenges and supply chain disruptions.
“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.
According to the FDC, headline inflation is projected to rise to 14.5 per cent in October from 13.71 per cent in September.
“This means that inflation will be rising for the 14th consecutive month. It would also be the highest level in 33 months.

Also Read: IMF says Nigeria’s Economic Growth to Decline by 4.3% in 2020

“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.”
“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.”