The economic cost of the # EndSARS protest disruption is estimated at N1 . 5 tn , approximately 1 . 03 per cent of the GDP and 11 . 47 per cent of the 2021 budget , Financial Derivatives Company Limited has said .
“ This suggests that the economic recovery path could be longer than anticipated . Massive investment in job – elastic sectors with minimal control on the pricing mechanism will serve as catalysts and would ensure a sustained ‘ take – off ’ , ” the FDC , led by foremost economist Bismarck Rewane, said in its latest economic bulletin .
Last month , a large number of Nigerians, mostly youths , protested for more than 10 days against the activities of the now -dissolved Special Anti – Robbery Squad , which had long been accused of unlawful arrests, torture and extrajudicial killings .
The FDC said the protests magnified existing output challenges and supply chain disruptions.
“ This coupled with money supply saturation , higher logistics costs , CBN ’ s forex rationing as well as forex restriction for imported finished goods have heightened inflationary pressures , ” it said .
According to the FDC analysts , headline inflation is projected to rise to 14 . 5 per cent in October from 13 .71 per cent in September.
They said , “ This means that inflation will be rising for the 14 th consecutive month . It would also be the highest level in 33 months.
“ Food inflation will be the most affected as it is estimated to climb to 17 .05 per cent . Other sub – indices are also expected to move in the same direction . ”