The Lagos Chamber of Commerce and Industry said the #EndSARS crisis may perpetuate Nigeria’s recession into fourth quarter, as the country is already in its worst recession since 33 years.
The Director-General of Lagos based chamber, Muda Yusuf said this in an interview with .
Nigerians took to the streets to protest against the Special Anti-Robbery Squad, a unit of the Nigerian police accused of extortion and extrajudicial killing.
But attacks on peaceful protesters by the Nigerian Army at Lekki Toll Gate resulting to the alleged killings of protestors degenerated to a nationwide looting pree.
The LCCI boss said, “Regrettably, the EndSARS crisis may perpetuate the recession into the fourth quarter. The protests and the destruction that followed was a major setback for our economic recovery prospects.”
The National Bureau of Statistics had on Saturday said Africa’s largest economy fell by 3.62 per cent in the third quarter of this year.
This is coupled with Nigeria’s inflation rate which is at 14.23 per cent.
LCCI head said, “In economic parlance , this condition is characterised as stagflation. The effects of these developments are evident in business and in households.”
The LCCI Chief said the news of the recession did not come as a surprise, adding “With these numbers, we can possibly say that the worst is over as the contraction in the third quarter was much less than what we experienced in the second quarter.”
The D-G said the #EndSARS experience has dampened investors confidence on the country’s internal security conditions.
Yusuf said, “Security presence is becoming less visible especially in the major cities. The psychological effects could adversely affect investment and economic recovery.
“We appreciate the setback suffered by the police as a result of the recent protests and we empathize with them. But we need to give security confidence to citizens and investors.
“Incidents of kidnapping, banditry, herders-farmer clashes have not abated. These also have grave implications for investments.”
The D-G said the economy will grow in the first or second quarter of 2021, “barring any new disruptions to the economy.”
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