As economic austerity in Nigeria reaches unbearable levels, the African Development Bank (AfDB) has expressed worries that rising prices of fuel, food and other essential commodities could precipitate social unrest.
According to the regional bank, rising cost of living could also lead to social unrest in Ethiopia, Angola and Kenya respectively who are also buffeted by lingering economic hostilities.
The AfDB issued the warning in its macroeconomic performance and outlook for 2024 released at the weekend.
Despite the lingering economic crises in most countries on the continent, the bank projected Africa’s economy to grow higher than the 3.2 per cent recorded in 2023.
The AfDB projected that growth on the continent will rebound to 3.8% 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.
“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 has 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, may trigger supply chain disruptions, which could aggravate energy and food inflation across the world with Africa more vulnerable to these shocks.
Nigeria has been faced with rising cost of living, which has led to some Nigerians hitting the streets in some states in recent times in protest.
The protest over increasing hardship started 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, without commensurate palliatives to absorb the concomitant shocks.