Banking
Rising commodity prices in Nigeria could fuel social unrest – AfDB
The African Development Bank (AfDB) has expressed concern that rising prices of fuel and other commodities could lead to social unrest in Nigeria.
The rising cost of living could also lead to social unrest in Ethiopia, Angola, and Kenya, respectively, the bank said.
The AfDB issued the warning in its macroeconomic performance and outlook for 2024, in which it projected Africa’s economy to grow higher than the 3.2 percent recorded in 2023.
The AfDB projected that growth on the continent would rebound to 3.8% in 2024.
However, the bank cautioned that an increase in fuel and commodity prices occasioned by currency depreciation or subsidy removal in Nigeria, Angola, Kenya, and Ethiopia could trigger internal conflicts.
It stated, “Internal conflicts and violence could also result from rising prices for fuel and other commodities due to weaker domestic currencies and reforms.
“For instance, the removal of fuel subsidies in Angola, Ethiopia, Kenya, and Nigeria and the resulting social costs have led to social unrest driven by opposition to government policy.”
The AfDB also said the rise of geopolitical tensions in Eastern Europe and the Middle East, in addition to the El Nino phenomenon, may trigger supply chain disruptions, which could aggravate energy and food inflation across the world, making Africa more vulnerable to these shocks.
Recall that Nigeria has been faced with rising costs of living, which has led to some Nigerians hitting the streets in some states in recent times in protest.
The protest over increasing hardship started in Minna, Niger State, on February 5, with many other states holding similar protests after.
Citizens have blamed the cost of living crisis on the federal government’s policies of removing petrol subsidy and floating the naira.
Meanwhile, the Nigeria Labour Congress (NLC) has also scheduled a two-day nationwide protest over the hardship being experienced by Nigerians as well as the deteriorating security situation in the country.
Joe Ajaero, President, Nigerian Labour Congress
Speaking in a press conference after an emergency meeting of the National Executive Council (NEC) of the union on Friday, the NLC President, Joe Ajaero, said the protest will begin a week after the expiration of the 14-day ultimatum it issued to the Federal Government, which will expire on February 23.
The planned days for the nationwide protest are February 27 and 28.
