Rising Costs in Nigeria could lead to social unrest, AfDB warns

The African Development Bank (AfDB) has warned that rising prices of fuel and other commodities could lead to social unrest in Nigeria.

The bank also warned that rising cost of living could also lead to social unrest in Ethiopia, Angola and Kenya respectively.

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 per cent recorded in 2023.

According to the bank, it is projected that growth on the continent will rebound to 3.8% in 2024.

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It, however, 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.

“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 has led to social unrest driven by opposition to government policy.”

According to the AfDB, the rise of geopolitical tensions in Eastern Europe and the Middle East in addition with the El Nino phenomenon, may trigger supply chain disruptions, which could aggravate energy and food inflation across the world with Africa more vulnerable to these shocks.

Ripples reports that Nigeria has been faced with rising cost 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.

 

 

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