₦47.12 billion in damages, 2021 most uncertain

We noted how the stern and tone deaf presidential response was the match that lit the ongoing demonstrations, which are anything but peaceful. But with over 59 incidents in 26 states, what’s next for the self-acclaimed giant of Africa? To say nothing of the economic implications of losses incurred by protests running up to billions in damages.  

Serious security breaches across police stations featuring alleged prison breaks, foiled attempts, and burnt patrol cars; 

Government and private properties razed, destroying revenue generation channels;

Reports estimate over ₦47.12 billion in damages from raids;

With a 2021 budget riddled with uncertainty, current events aggravate unfavourable economic conditions for Nigerians in the near future. 

Prior to what we addressed as EndSARS loot, following the discovery of COVID-19 palliatives, demonstrations became a tad more intense. Particularly, correctional centres in Edo and Ondo State felt the bite of the mobs leading to the alleged escape of over 2000 inmates. And according to reports, timely intervention of security personnel foiled similar attempts at Ikoyi, Lagos. 

In the same vein, felons destroyed many police stations, razing vehicles. The magnitude of effect of this destruction on the economy is unfathomable. Likewise, a recent Dataphyte report which noted over 27 razed police stations, with 10 missing AK-rifles, questioned the compounded effect on an already sinking economy, serviced by debt. Not to mention the opportunity cost of repairs which the country would have channelled to other areas of the country. Worse, though, there was also no distinction between government and private property, as raiders plundered indiscriminately.

To this effect, Dataphyte compiled some of these damages outlining property, location and state. 

The Rundown

Police Stations

Station	Location	State
Pako Layeni Police Stations	Amukoko and Ajegunle	Lagos
Nworieubi Police Divisional HQ	Mbaitoli LGA	Imo
Ekeaba and Kpiri Kpiri police divisions	Abakaliki	Ebonui
Ugbekun Police Station	Benin	Edo
Dutse Makaranta police station	Kubwa	Abuja
Dragon Squad unit of the State police command	ABA	ABIA
Iseyin Police Station	Iseyin	Oyo
Central Police Station	Nnewi	Anambra
SARS Office and a Police Division	Akure	Ondo
Police Station	Ijebu-ode	Ogun
Division HQ Police Station and Vehicles	Ikere	Ekiti
Two Police Station	Benin	Edo
Police Station	OrukAnam	Akwa Ibom

Destroyed Properties

Government Property	Location	State
Nigerian Ports Authority	Marina	Lagos
Post office and local market	Osogbo	Osun
FRSC and VIO	Ojodu	Lagos
FRSC	Asaba	Delta
Local Government house	Enugu north	Enugu
Town hall	Aba	Abia
Operational van of the Nigerian Airforce	Benin-agbor road	Benin
Akwa Ibom state broadcasting corporation (AKBC)		Akwa ibom
BRT and police vehicles		Lagos
Vandalized warehouse of COVID-19 palliatives and looted food items	Bukuru	Plateau
Federal High Court	Igbosere	Lagos

Private Property	Locations	State
Cars and tents	Central	Abuja
Trucks		Ekiti
TVC and lekki toll gate		Lagos
Samsung showroom and 18 other personal shops, which includes MTN stores, boutiques down to ShopRite	Bode Thomas, Surulere	Lagos
Oluwarotimi Akeredolu campaign office		Ondo
Oba palace of Lagos		Lagos
Shoprite, banks and ATM	Lekki and Surulere	Lagos
First bank	Aba	Abia
Nations Newspaper		Lagos
Vehicles		Lagos
ATMs	Presidential road	Enugu
First bank, Access bank and 6 ATM machines	Abakpa	Enugu
Otigba Statue	Otigba roundabout	Enugu
Cars	Berger	Abuja
Nollywood actress Uche Elendu’s shop vandalized, looted	Lekki	Lagos
AIT Office	Edo	Benin
Palace of the Soun of Ogbomoso	Ogbomosho	Osun
Vehicles, galaxy shopping mall, the lodge summit and chicken republic		Kano
Fumi Morris	Sapele	Delta
De choice mall, Anchor Insurance, lG showroom, Zenith, FCMB and Access bank	Uyo	Akwa ibom
Shoprite mall, Femkem electronics and phone store, agro mall, Ilorin cargo terminal stores and customs house	Ilorin	Kwara
Senator’s farm, APC secretariat, office of the health insurance scheme campaign office and others		Osun
Senator loses property worth over N200m to vandals in Ibadan	Ibadan	Oyo
Actress Lilian Bach stored vandalized and looted	Surulere	Lagos
Protesters set Ondo APC secretariat ablaze, attack chairman’s house	Akure	Ondo
Lagos Oriental Hotel	Lekki	Lagos
Oil Tankers set ablaze	Warri	Delta

Estimated Losses

Property	Number	Unit Cost	Total Cost
BRT Buses	84	$100,000 & $200,000	N3.9 billion
ATM	15	$20,000 ( N7.6 million)	N114.2 million
Oil Tankers with products	3		N90 million
Police Stations, vans and barracks (Lagos)	25, 20 & 3		N10 billion
Lekki Toll Gate		$85 million ,	N32.5 billion
Senator’s property	–	–	N200 million
Vehicles	57	N1.5 million	N85.5 million
Lekki toll gate revenue	–	–	N234 million
Total			N47.12 billion

Implications on the Economy

Akin to COVID, this new normal shows no signs of dissipating soon.

So far, reports estimate a value of N47.12 billion in damages, excluding inestimable losses. While on a surface level, this creates an obvious economic dent, juxtaposing this reality with the existing pressures of revenue generation in Nigeria tells a sadder tale. 

Already, the 2021 budget was fraught with some discrepancies, adding these new challenges spell an uncertain economic future for Nigeria. Most certain, the huge deficit created in the budget will be widened with some revenue channels destroyed. 

Earlier this year, Nigeria experienced two consecutive negative GDP quarter reports, per the National Bureau of Statistics (NBS). And according to Public Finance Expert, Atiku Samuel, expecting a third was well within reality, given current conditions. 

Likewise, because of the ensuing raids, the flow of goods to markets was affected, halting production activities. Furthermore, given the damage to production activities, expect a slow return for domestic trade, Atiku notes. 

“People that have looted items will not go to the market to buy things; ergo, those in the market cannot sell their goods.”

Speaking of trade, the Economist further highlighted a seller-buyer conundrum created by the ongoing plundering. So what happens? This means that there will be no cash in circulation. But cash is key in such a contractionary economic period. As a result, the government has fewer economic transactions to tax. More so, little or no transactions will cripple small and medium scale businesses, further crippling the economy. 

By and large, 2021 seems uncertain for the Nigerian economy because of security and governance challenges.