Senior economist and head of research and strategy at Greenwich Bank, Mr. Ayodeji Ebu, has said that the unrest and subsequent 24 hours curfew imposed by the Lagos State government to restore peace and order may have cost the state at least N54 billion each day that the curfew lasted.
Ebu who stated this in Lagos said the social unrest would impact negatively on direct investment in the remaining part of the year as well as in the first quarter (Q1) 2021.
“While it may be difficult to estimate the exact loss so far, based on the significant contribution of Lagos State (approximately 30 per cent) to Nigeria’s total Gross Domestic Product (GDP) and as over 50 percent of Nigeria’s non-oil industrial capacity is located in Lagos, the impact of the crisis will be enormous.
“This was further compounded with the 24hours curfew that lasted for about four days. Estimating using the Q2’2020 GDP data and assuming there was a total shut down, each day will cost Lagos alone about N54 billion.
“With Lagos the centre of the civil unrest, which account for 70 percent or $1.1 billion of total capital importation in Q2’2020, we expect this to further impact on direct investment in Q4’2020 and Q1’2021.”
He stated that insurance claims would also spike due to the damages on lives and properties across the country.