The African Development Bank (AfDB) has warned that increasing prices of fuel and other commodities could cause social unrest in Nigeria.
The bank also warned that the rising cost of living could cause social unrest in Ethiopia, Kenya and Angola.
The AfDB issued the warning in its macroeconomic performance and outlook for this year in which it forecasted that the economy of Africa will grow above the 3.2 per cent recorded in 2023.
According to the bank, Africa’s growth will rebound to 3.8% in 2024.
The AfDB however cautioned that an increase in fuel and commodity prices triggered by currency depreciation or subsidy removal in Nigeria, Angola, Kenya and Ethiopia could lead to internal conflicts.
The bank said: “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.”
According to the AfDB, the rise in geopolitical tensions in Eastern Europe and the Middle East coupled with the El Nino phenomenon, may trigger supply chain disruptions, which could worsen energy and food inflation across the world with Africa more pronee to these shocks.
Recall that Nigeria has encountered rising cost of living, which made some Nigerians hit the streets in some states in protest.
The protest over growing hardship commenced in Minna, Niger State on February 5, with many other states staging similar protests after.
