Business Owners Concerned Protests Will Impact Productivity

Entrepreneurs are worried that the August 1 protest could impact productivity and result in an estimated N400 billion loss for the economy. Industry stakeholders are concerned about the potential effects of the demonstrations on businesses and properties.

Segun Kuti-George, National Vice President of the Nigerian Association of Small-Scale Industrialists, expressed that the fear of arson from the EndSARS protests still lingers among Nigerian business owners who narrowly avoided losing their factories.

“Our factories were nearly destroyed, and we would have been left without businesses,” Kuti-George told NIGERIA NEWS 247, reflecting on the experiences of business owners during the EndSARS protests.

The August 1 protests, also known as the Hunger Protest, are primarily organized through social media platforms like X (formerly Twitter).

Both Nigerian political figures and security agencies have urged for peaceful demonstrations, while business stakeholders hope for a non-disruptive event.

Kuti-George noted that many Nigerians are likely to limit their movements during the protests, leading to decreased foot traffic and slower business activity. “People will be cautious and may choose to stay home, which could result in a drop in business,” he said. Some employers might even instruct their staff to work remotely.

Development economist Rotimi Oyelere highlighted that protests can lead to a loss of output and income when they disrupt workers’ activities. “Nationwide protests can have a micro impact on immediate income loss for households and businesses, and a macro impact on overall economic output,” he explained.

Oyelere warned that prolonged protests could result in further indirect losses if there is damage to property. He recommended improving transparency between the public and the government to help alleviate social unrest.

An earlier analysis by the Centre for the Promotion of Private Enterprise (CPPE) suggested that poorly managed protests could pose “grave dangers to an already fragile economy,” potentially resulting in a daily loss of N400 billion.

Dr. Muda Yusuf, CEO of CPPE, advised that protesters should consider that over 90% of employed Nigerians work in the informal sector, where daily income is crucial. “Any disruption beyond 24 hours could lead to significant social unrest,” Yusuf noted. He also suggested limiting the protests to one day to reduce the risk of chaos.