While discussing the implications of the protest against police brutality, Toki Mabogunje, the President of Lagos Chamber for Commerce and Industry (LCCI), said the nationwide demonstration has negatively impacted the Nigerian economy.

The LCCI boss noted that the industry appreciates the participation of citizen in the protest and the demands for accountability, but the negative impact it’s having on the economy is alarming.

Her words: “These are in consonance with the democratic norms. They also form vital ingredients for good governance;

“LCCI is however concerned about the negative impact that the protracted nature of the ENDSARS protest has on business activities across the country;

“Over the past 12 days, economic activities have been crippled in most part of the country and have been particularly profound in the urban areas;

“The Nigeria economy has suffered an estimated 700billlion loss in the past 12 days.”

She further suggested that in order to protect the livelihood of Nigerians, including the business community, the #EndSARS protesters need to progress to the next stage of civic engagement, which is dialogue.

“This is necessary to reduce the massive disruptions, blockades and barricades around our major cities and interstate highways. These actions have been at great cost to the economy and the welfare of Nigeria citizen. It should be noted that our economy is still reeling from the shock of the COVID-19 pandemic and struggling to recover from its devastating effects.”

Toki also urged President Muhammadu Buhari to urgently grant audience to the #EndSARS agitators.

“That the government should commit to rapid improvement in governance quality and accountability by effecting necessary institutional policy and regulatory reforms not only for the police but the entire public sector economic system;

“The leadership of the protest should occupy the seats provided to participate in the reforms to be implemented by the government in response to their demands,” she added.

It is almost three weeks since the protest against police brutality across the country began. However, in order to make their agitation effect, the #EndSARS protesters have since taken over major money-making spots like the Lekki tollgate. Not only that, workers have also not been allowed to commute to their various workplaces.

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Speaking during LCCI’s Annual General Meeting (AGM), Toki Mabogunje, the professional body’s president, stated that the country’s debt is fast becoming unsustainable.

According to her, in the light of the dwindling oil prices and production, Nigeria’s debt profile is likely to hit N34 trillion by the end of this year (2020).

Making reference to the Debt Management Office (DMO), Mabogunje explained that increase in Nigeria’s public debt was because of the fresh domestic and external borrowing, which she noted were meant to connect the wide fiscal deficit in the revised 2020 budget given the economic impact of COVID-19 and recent exchange rate devaluation.

She said: “The public debt stock grew by 8 percent to a whooping N31tn at the end of the second quarter which is equivalent to 21 percent of the GDP.

 “At the peak of the pandemic in the second quarter, the Federal Government received financial support worth $3.4bn and $288.5m from the International Monetary Fund and the African Development Bank respectively, while negotiations are also on-going for a cumulative $1.8bn credit support from the World Bank, AFDB and Islamic Development Bank.”

The LCCI president further made mention of underperforming sectors, which she said has contributed to the country’s unstable economy due to their weak performances.

Mabogunje revealed that 19 sectors have contracted, 14 are in a recession, 11 sectors expanded, and two sectors had moderation in growth.

“While we commend policymakers for the interventions in reflating the economy and supporting business. We urge that special attention be given to sectors severely impacted by the pandemic. The federal government need to expeditiously redirect attention to these sectors including aviation, hospitality, entertainment and manufacturing. This has become necessary to protect jobs, preserve investments and provide the much needed liquidity required to revive the sector,” she added.

Nigeria’s debt portfolio

Recall that some weeks ago, DMO released the country’s debt report.

In the report, Unmask NG learnt that Nigeria’s total debt stock, which comprises foreign and local arrears, as at June 2020 stood at N31.01 trillion, which represents 8.31% increase when compared to her N28.63 trillion debt profile as at March 2020 (three months prior).

Out of the N31.01 trillion debt profile, external debt stood at N11.36 trillion, representing 36.65% of the total debt stock. On the other hand, domestic debt at N19.65 trillion, representing 63.35% of the total debt.

The DMO report also disclosed that N1.21 trillion was spent to service the loans during the period under review. While domestic debt servicing gulped N921.9 billion, the government spent N288.6 billion to service its foreign debts.

Here’s what we know

In spite of concerns from economy experts, industry players and stakeholders, and international bodies, the President Muhammadu Buhari-led government has channeled its focus on borrowings and adding to Nigeria’s alarming debt stock.

From recent comments by officers in Buhari’s cabinet, it is pretty much obvious that loans seem to be the only way the incumbent administration can secure funds to keep the economy running.

But the reality is, should the government continue on this trend, the increasing debt would not stop to disrupt large investments on infrastructures, which are meant to stimulate productivity and improve the standard of living of the people.

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