#EndSARS: ‘Why impact of protest on investment is unquantifiable’

By Tunde Shorunke

The real impact of the #EndSARS protest as ranges from losses of billion US dollars across sectors along with several implicit costs from curfews arising to restriction of movement and reputational risk.

Experts have highlighted that impacts of the #EndSARS protest on investment is unquantifiable looking from the range of a loss of confidence from investors which will drastically manifest into the drop in real Gross Domestic Product (GDP), drop-in Foreign Direct Investment (FDI), widening fiscal deficit, further borrowings which will worsen debt burden, among others.

Also, businessmen lamented the impact of protest on their business, adding that transparency and accountability from the federal government institutions will enhance the confidence of youths to believe in the current administration.

In an enquiry by The Daily Times, a professor of Capital Market at Nasarawa State University, Prof. Uche Uwaleke acknowledged that the wake of the #EndSARS protest crisis coupled with a curfew in several states will inevitably manifest in fall of real Gross Domestic Product (GDP).

“While it may be relatively easy to quantify the explicit costs to government, groups and individuals of properties destroyed in the wake of the #EndSARS crisis which runs into billions of dollars, the implicit costs from curfews in several states, movement restrictions, reputational risk and impact on investment cannot be quantified.

So also is the loss of precious lives many of whom must be family breadwinners. “Inevitably, the result will manifest in fall in real GDP deepening the projected economic contraction this year, disruptions in supply chain and rising inflation, widening of fiscal deficit as the government is bound to incur extra-budgetary expenditure to fix damaged infrastructure.

This will entail further borrowing and worsening the debt burden.

“Further reduction in foreign investments should be expected which is likely going to affect external reserves and put more pressure in the forex market and the Exchange rate.

“The stock market is likely to witness dampening interest investors’ sentiments. Also, the overall level of poverty and unemployment will likely rise,” he submitted.

Prof. Uwaleke further stated that the federal government should move fast to restore normalcy and confidence in the economy including speedy implementation of socioeconomic reforms in line with the demands of the end SARS protesters.

Also, speaking with our correspondent, the Chairman/Chief Executive Officer of Adejones Global Investment, Pastor Joseph Adekojo has emphasised that the federal government needs to critically intervene to ensure dialogue with the #EndSars protesters.

“Youth empowerment should be the federal, state and local government priority at the moment, the need for their engagement in government decision should also be enlisted to curb further protest.

Transparency and accountability of government institutions should be encouraged for the youths to restore confidence in the current administration.

“I believe the government will be rolling out loans for youth empowerment to enable this youth to have something doing.

It can be recalled that the protest was initially peaceful when it was championed by educated ones but when the said shooting at Lekki Toll gate comes up, the hoodlums come in to change the headline.

“If we can access all the mayhem and violence done by this protest hijackers or hoodlums, an educated man in its right sense wouldn’t have done such, looking especially at several shopping malls looted nationwide, it was said that bookshops were left untouched which brings about the popular quote saying ‘readers don’t loot while looters don’t read’.

All the looted malls and shops cannot be looted by somebody in its right sense. “Also, we businessmen also need to play a huge role in curbing this protest, as it has affected our businesses.

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We need to call on the Youth and enlightening them of the need to engage their self in meaningful business, we could stand as a guarantor for them or loan them money by ourselves.

I believe if they are employed and they can carter for their needs we won’t be experiencing this mayhem.

“In a nation, where over 70 per cent of its population is youth and unemployment, is high, what more should we expect?

The government cannot do it alone but the government have a long way to go,” he added