#EndSARS Interruption of protest cost Nigeria’s economy 1.5 trillion NG – FDC

Posted by on Nov 9, 2020, Under: News

#EndSARS Interruption of protest cost Nigeria’s economy 1.5 trillion NG – FDC

According to the Financial Derivatives Company Limited, the economic damage caused by the #EndSARS protest is estimated at $ 1.5 trillion. N.E., About 1.03% of GDP and 11.47% of the 2021 budget.

The FDC, which had expected headline inflation to rise to 14.5% in October from 13.71% in September, said the protests exacerbated existing manufacturing problems and supply chain disruptions.

In its latest economic bulletin, the FDC, led by leading economist Bismarck Rewein, said:

“This suggests that the road to economic recovery may be longer than expected. Massive investments in sectors that are more flexible than operating with minimal control over the pricing mechanism will act as catalysts and ensure sustained take-off.

“This, combined with money saturation, higher logistics costs, CBN exchange rationing and restrictions on finished goods imports, has increased inflationary pressures.

“This means that inflation will rise for the 14th month in a row. This will also be the highest level in 33 months.

“Food inflation will be hit hardest as it is estimated to rise to 17.05 percent. Other sub-indices are expected to move in the same direction. ”

The FDC, in a report that notes that onion, palm oil and tomato prices rose 100%, 30.43% and 16.67%, respectively, also added that commodity prices rose an average of 25%. % last month, when protests exacerbated existing production restrictions and supply chain disruption.

Bulletin added;

“About 1,800 trucks, food, finished goods, other raw materials and logistics enter Lagos every day.

“One obvious trend during our study was that perishable and seasonal items were hit hard.”