Business Day

Nigeria counts cost of postponed poll

- Agency Staff Lagos

Nigerians who were surprised when the country’s presidenti­al election was postponed on Saturday might suffer a second shock when they learn the cost.

Nigerians who were surprised when the country’s presidenti­al election was postponed on Saturday might suffer a second shock when they learn the cost.

“The cost to the economy of the postponeme­nt of the election is horrendous,” said Muda Yusuf, general director of the Lagos Chamber of Commerce and Industry who advanced an estimate of $1.5bn.

“The economy was on partial shutdown the day before, and total shutdown on Saturday for the elections” that did not take place, he explained.

The streets of Lagos were empty early on Sunday as the sprawling economic capital of 20-million people recovered from the disappoint­ment and anger provoked by a lastminute, one-week delay blamed on logistical issues.

The Independen­t Electoral Commission announced the delay just hours before polls to elect the head of Africa’s most populous nation and members of parliament were to open.

The commission cited problems in the distributi­on of ballot papers and results sheets, as well as sabotage, after three fires at its offices in two weeks.

The leading candidates, President Muhammadu Buhari and challenger Abubakar Atiku, both called for calm, but a population of 190-million people facing unemployme­nt and extreme poverty took a financial hit from the decision.

For many, the cost of leaving cities where they work to go home and vote in their native regions is substantia­l.

Meanwhile, social media was used to organise collection­s for street vendors who had bought perishable items to sell to voters that often wait in long lines.

The amount ultimately raised was unlikely to make much difference to tens of millions of people who live on less than $1.90 a day, but it did highlight solidarity not always widespread in the country.

Many businesses, including the critical port of Lagos, had shut down Friday so staff could leave cities before an electionre­lated curfew took effect on Saturday from 8am to 6pm. Airports and border crossing points had stopped operating as well.

For economist Bismark Rewane, however, “the most important cost ... is the reputation­al cost. “Investors’ confidence will be eroded” and in the long term, when indirect costs are taken into account, the delay might cost the equivalent of two percentage points of national output, he said.

In currency terms, Rewane estimated the possible cost at “$9bn to $10bn”.

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