The African Development Bank (AfDB) has raised concerns over the escalating prices of fuel and other essential commodities in Nigeria, suggesting that this could potentially lead to social unrest in the country.
In its macroeconomic performance and outlook report for 2024, the AfDB highlighted the possibility of similar unrest in Ethiopia, Angola, and Kenya due to the increasing cost of living. The bank projected a higher economic growth rate for Africa in 2024, estimating a rebound to 3.8% from the 3.2% recorded in 2023.
However, the AfDB cautioned that a surge in fuel and commodity prices, driven by currency depreciation or subsidy removal, could exacerbate internal conflicts in Nigeria, Angola, Kenya, and Ethiopia.
The report stated, “Internal conflicts and violence may arise from the rising prices of fuel and other essential commodities, stemming from weakened domestic currencies and policy reforms. For instance, the removal of fuel subsidies in Angola, Ethiopia, Kenya, and Nigeria, and the resulting social costs, have sparked unrest due to opposition to government policies.”
Additionally, the AfDB highlighted the potential impact of geopolitical tensions in Eastern Europe and the Middle East, along with the El Nino phenomenon, which could disrupt supply chains and further escalate energy and food inflation globally, with Africa particularly susceptible to these shocks.
Recent protests in various Nigerian states, triggered by the escalating cost of living, reflect citizens’ discontent with the federal government’s policies, particularly the removal of petrol subsidies and the depreciation of the naira. The Nigeria Labour Congress (NLC) has announced plans for a nationwide protest to address the hardships faced by Nigerians and the deteriorating security situation in the country.
Following an emergency meeting of the National Executive Council (NEC) on Friday, NLC President Joe Ajaero stated that the protest would commence a week after the expiration of the 14-day ultimatum issued to the Federal Government, scheduled to end on February 23. The nationwide protest is planned for February 27 and 28.