The previous year 2020 was unusual. The Coronavirus pandemic was a major headwind, and its effect would linger in many developing countries like Nigeria. Governments are not certain to see significant improvement throughout the year 2021 despite the intervention programs. In Nigeria, the EndSARS campaign in the last quarter of 2020 caused a gaping fissure to the foundations of national politics. As a result, varying levels of tensions have been experienced through 2021. Open incidences of robbery, kidnapping, terrorism, political and ethnic suspicion are a few.
Politics affect economics. Over the last 15 years, security crises in the Southsouth and Northeast have thwarted growth and prosperity in Nigeria. As the polity quakes, businesses struggle. The declining output and rising unemployment combine to limit the alternatives available to households even as inflation erodes the value of their savings. The political economy is unstable. Therefore, it is important to analyze the outlook for the rest of the year and examine the implications for businesses and investors looking to make decisions.