Rising cost of living in Nigeria could lead to social unrest, AfDB warns
The African Development Bank (AfDB) has warned that rising prices of fuel, food and other commodities in Nigeria could lead to social unrest.
It also said rising cost of living could cause social unrest in Ethiopia, Angola and Kenya.
The AfDB stated this in its macroeconomic performance and outlook for 2024.
It however projected Africa’s economy to grow higher than the 3.2 per cent recorded in 2023.
The AfDB projected that growth on the continent would rebound to 3.8 per cent in 2024.
However, the bank 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.
It stated, “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 have led to social unrest driven by opposition to government policy.”
The AfDB also said the rise of geopolitical tensions in Eastern Europe and the Middle East in addition with the El Nino phenomenon could trigger supply chain disruptions.
This, it said, could aggravate energy and food inflation across the world with Africa more vulnerable to these shocks.
Already, there have been protests in some parts of the country over rising cost of living.
Street protests were recorded in Minna, Niger State on February 5, with many other states holding similar protests after.
Citizens have blamed the cost of living crisis on the Federal Government’s policies of the petrol subsidy removal and floating of the naira.
The Nigeria Labour Congress (NLC) has also announced a two-day nationwide protest over the hardship being experienced by Nigerians as well as the deteriorating security situation in the country.
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