#EndSARS Protests May Trigger Inflation, Policy Analyst Warns

It’s been almost two weeks of several demonstrations by Nigerian youths to end police brutality. Experts and analysts are calling on the government to speed up and meet the demands of protesters in order to mitigate the effects on Africa’s most populous economy.

CEO of Cowry Asset Management, Johnson Chukwu, said one of the negative impacts of the protests is a disruption in supply chains which will result in a spike in the prices of food items thereby causing inflation to rise even further.

The policy analyst also said he expects the economy to contract further in the fourth quarter of this year and if the protests are prolonged, he sees more bearish runs in the Nigerian stock markets.

During periods of political instability and social unrest, the industrial goods sector tend to fall because people move away from capital investment and invest more in the consumer goods.

Meanwhile, Arise Business Analyst Chika Mbonu said security is very vital to attract local and foreign investors. He said “(If) an economy that does not have security, investors will stay away from it. Already our foreign direct investment has been falling…”

Mbonu further pointed out that the big picture is that in order for the economy to be secure, Nigeria needs a well-motivated and professional police system.

He called on the government to be transparent and sincere in the process of setting up judiciary panels and ensure the welfare of the police is improved so that they can work more efficiently and attract potential foreign investors.

Lillian Jijingi

Follow us on:

AriseNews

Recent Posts

Court Dismisses Case Against Protesters Charged Over Protests, Releases Minors Charged With Treason

An Abuja court has struck out the case against #EndBadGovernance protesters as the AGF discontinued…

50 mins ago

Britain Detects Two Additional Cases Of New Mpox Variant, Total Reaches Three

The UK has confirmed two more cases of the new mpox variant, clade Ib

1 hour ago

Ekiti Chief Judge Oyewole Adeyeye Passes Away From Injuries Sustained In Court Building Collapse

Ekiti mourns as Chief Judge Justice Adeyeye dies, succumbing to injuries from a court building…

2 hours ago

Boeing Workers End Seven-Week Strike After Accepting 38% Pay Increase

Boeing workers have accepted a new contract with a 38% raise, ending a seven-week strike…

2 hours ago

Trial Underway for Eight People Accused of Inciting Murder of Teacher Samuel Paty

Eight individuals are on trial in Paris, accused of inciting the murder of teacher Samuel…

2 hours ago

Indonesian Government To Evacuate 16,000 Residents After Mount Lewotobi Eruption

Indonesia is evacuating 16,000 residents after Mount Lewotobi erupted, resulting in nine deaths and significant…

2 hours ago