Nigerian economists and business managers have spoken on the dwindling economic impacts of the ongoing #ENDSARS protests witnessed across the country.
Nigerian youths have taken to the streets to demand that the country’s leaders disband the Special Anti-Robbery Squad (SARS) and reform the nation’s police force.
The financial experts disclosed that the businesses in the country lose at least N10 billion daily since the commencement of the #EndSARS protests.
Speaking about the damage caused by the protest in the country, a former Executive Director, Keystone Bank Limited, Richard Obire, explained that the development hit the economy at a time most of the businesses were just trying to get their stands.
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, the 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.
Also speaking about the development, the director-general, Lagos Chamber of Commerce and Industry (LCCI), Dr. Muda Yusuf, stated that the protest is crippling businesses and economy, especially the Small and Medium Enterprises (SMEs).
Dr. Yusuf explained further that the SMEs live by daily income and the continued disruption of their businesses lead to huge loss of income and business growth.
According to him, “For me, the earlier the government engaged the protesters, the better for the economy. The President should dialogue with the protesters for quick resolution.”
Meanwhile, an economist and former president, Chairman of Council, Chartered Institute of Bankers of Nigeria (CIBN), Okechukwu Unegbu, is of the opinion that whatever the economy loses will be temporary and could be gained if the expected reforms are instituted.
Unegbu said: “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.
“In the next three months, we are likely to see a rise in foreign direct investment if the protesters’ demands are resolved.
“Whatever losses the economy and businesses have incurred in recent weeks will be offset by improved business environment and corporate governance practices.”