SMEs on high alert: preparing for potential disruptions from August protests

By Busola Bamidele

The #EndSARS protests of October 2020 significantly disrupted Nigeria’s business environment, causing widespread shutdowns, vandalism, and looting, resulting in an estimated loss of over $100 million. Major cities like Lagos and Abuja were brought to a standstill, severely impacting daily operations and supply chains. This unrest led to a temporary dip in investor confidence and economic activity, highlighting the fragility of the business environment during periods of civil unrest.

As Nigeria braces for the upcoming protests on August 1 and 2, 2024, small and medium enterprises (SMEs) face heightened risks. Drawing from past events, these new demonstrations, focused on governance and economic reform, could mirror previous disruptions. SMEs are particularly vulnerable to such unrest, having suffered closures, property damage, and theft during the #EndSARS protests.

In anticipation of these protests, SMEs should prepare for potential interruptions in operations, supply chain disruptions, and increased security measures. To mitigate these risks, SMEs should consider the following strategies:

1. Review and Update Contingency Plans: Ensure your business continuity plan is comprehensive and addresses potential disruptions. This includes identifying critical operations, alternative suppliers, and backup communication channels.
2. Enhance Security Protocols: Invest in both physical and digital security measures to protect assets. This can include securing premises, employing additional security personnel, and enhancing cybersecurity to protect against potential digital threats.
3. Communicate with Stakeholders: Maintain open lines of communication with employees, suppliers, and customers. Keep them informed about your plans and any potential changes in operations. This can help manage expectations and maintain trust during uncertain times.
4. Monitor Developments Closely: Stay informed about the situation by monitoring news reports, social media, and government announcements. This will allow you to respond quickly to any changes in the protest dynamics.

By proactively addressing these potential impacts, SMEs can better navigate the uncertainties surrounding the August protests and safeguard their operations against possible disruptions. The outcomes of these demonstrations will largely depend on their scale and intensity, but staying vigilant and prepared is crucial for maintaining operational resilience.

Supporting Data and Insights

• Financial Impact: The #EndSARS protests resulted in over $100 million in losses. Similar economic disruptions could be anticipated if the August protests escalate.
• Operational Disruptions: During #EndSARS, major cities experienced significant shutdowns. SMEs should prepare for similar interruptions in major urban areas.
• Supply Chain Vulnerabilities: Past protests disrupted supply chains, highlighting the need for SMEs to identify alternative suppliers and logistic routes.
• Security Risks: The #EndSARS protests saw extensive vandalism and theft. Strengthening both physical and digital security is crucial.

By implementing these strategies and staying informed, SMEs can better manage the risks associated with the upcoming protests, ensuring they remain resilient in the face of potential civil unrest.