According to Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), the potential nationwide demonstrations could result in a daily economic loss of about ₦400 billion. In a statement issued on July 28, he cautioned that if the Protest is not carefully handled, it could have severe consequences for the national economy. He warned that the country and its people would face severe repercussions as a result of the loss. Major sectors of the economy, such as trade, manufacturing, entertainment, transportation, logistics, financial services, hospitality, agriculture, aviation, Information and communications Technology (ICT), and construction, are at a high risk of shutdowns and disruptions.
Not only are the lives and properties of innocent citizens and corporate entities in danger, but government assets are also vulnerable to risks. He praised the Inspector General of the police for recognising the citizens’ right to demonstrate and ensuring protection for those who are genuinely agitating. Yusuf emphasised the importance of collaboration between movement organisers and law enforcement to ensure a peaceful and organised demonstration. He stressed that prioritising a peaceful environment is beneficial for everyone involved. The effectiveness of a rally’s message remains strong even in a peaceful setting.
More extended demonstrations may harm the national economy.
He warned against providing a platform for individuals with malicious intentions who aim to harm innocent citizens, companies, and public property through criminal activities during the movement. According to the Centre for the Promotion of Private Enterprise, the demonstration should be kept short, ideally lasting only one day. Prolonged protests are more likely to become violent and lead to a lack of control. He commented that lengthy demonstrations provide a chance for troublemakers, delinquents, and criminals within the community to gain traction and cause chaos and devastation across the nation.
In his speech, the majority of working Nigerians, over 90%, are part of the informal economy. These workers rely on their daily earnings, so if their economic activities are disrupted for more than 24 hours, it could lead to significant social unrest. This highlights how susceptible the country is to extended periods of movement. The leader of CPPE stressed the importance of quickly putting in place the economic stabilisation plan to lower production expenses and alleviate inflationary issues.
Plan to reduce the duration of the protest was debated for effectiveness.
Additionally, the informal economy, which employs many people in the office, is particularly vulnerable to the disruptions caused by more extended protests. Daily wage earners and small business owners depend on consistent economic activity to meet ends. For instance, street vendors, artisans, and taxi drivers might find their income streams completely stopped during a movement, leaving them unable to afford necessities. The ripple effect of this Disruption can be severe, potentially pushing many families deeper into Poverty and increasing the likelihood of social unrest.
Also, the government has proposed several economic stabilisation plans in response to the potential economic fallout. These include financial assistance programs for affected businesses and individuals, Tax relief measures, and efforts to reduce production costs and tackle inflationary pressures. However, the effectiveness of these measures remains a subject of debate. Some business leaders praise the initiatives as necessary to improve the national economy, while others criticise them for being insufficient or poorly implemented. The government’s ability to execute these plans swiftly and efficiently will be crucial in mitigating the long-term impacts of the protests.
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Lastly, looking back at past protests in the country and other countries with similar economic challenges offers valuable lessons for managing the current situation. Historical examples show longer unrest often leads to economic setbacks and social instability. However, they also highlight the importance of effective dialogue between the government and protest leaders and implementing meaningful policy changes to address the root causes of discontent. By learning from these experiences, the country can better navigate the current crisis, ensuring minimal economic disruption while addressing the protesters’ concerns.