The African Development Bank (AfDB) has voiced concern over the potential for social unrest in Nigeria and other African nations due to escalating fuel and commodity prices. The bank highlighted Nigeria, Ethiopia, Angola, and Kenya as countries facing the risk of social upheaval as living costs surge.
In its 2024 macroeconomic performance and outlook report, the AfDB projected a higher economic growth rate for Africa, expecting a rebound to 3.8% from the 3.2% recorded in 2023. However, it cautioned that currency depreciation or subsidy removal could drive up fuel and commodity prices in the aforementioned countries, potentially sparking internal conflicts.
The removal of fuel subsidies in Nigeria, Angola, Ethiopia, and Kenya, coupled with resultant social costs, has already led to protests opposing government policies. The AfDB emphasized the link between rising prices and social unrest, underscoring the importance of currency stability and policy reforms to mitigate such risks.
Furthermore, the bank highlighted external factors such as geopolitical tensions and the El Nino phenomenon, which could disrupt global supply chains and exacerbate energy and food inflation, particularly affecting vulnerable regions like Africa.
AFDB
In Nigeria, recent protests in various states, beginning in Minna, Niger State, on February 5, underscore the growing frustration among citizens over the soaring cost of living. Many blame the federal government’s policies, including petrol subsidy removal and currency depreciation, for exacerbating the crisis.
