The Indigenous People of Biafra’s (IPOB) sit-at-home order has significantly disrupted economic activities in southeastern Nigeria, leading to a sharp decline in bank patronage and a surge in reliance on Point-of-Sale (POS) agents for financial transactions.
According to a report by SBM Intelligence, commercial banks across the region have suffered from reduced customer engagement as individuals opt for safer transaction alternatives in response to security concerns.
Implemented since August 2021, the sit-at-home directive compels residents to remain indoors and mandates businesses to shut down every Monday.
Evolving into a forceful demonstration
Originally introduced as a symbolic act of civil disobedience, the movement quickly evolved into a forceful demonstration with lasting consequences.
Compliance was initially widespread, largely fueled by fear and sympathy, but recent surveys indicate that only 29% of residents actively support the directive.
Many continue to abide by it primarily for security reasons rather than ideological alignment.
SBM Intelligence’s findings highlight both the economic drawbacks and shifts in consumer behavior caused by the sit-at-home order.
While traders experienced significant losses in the early days of enforcement, many have since adapted to the challenging circumstances.
Banks become less accessible, POS to the rescue
However, the report points out that POS agents have emerged as key beneficiaries, seeing an influx of customers as banks become less accessible.
The analysis notes that the restrictions have triggered income declines ranging between 50% and 70%, forcing individuals to seek alternative financial solutions.
“The sit-at-home protests caused a 50-70% income drop for most, though POS agents gained customers,” the report says.
The report also sheds light on the broader financial implications, stating that savings capacity among southeastern residents has diminished due to reduced earnings.
Inflation has compounded these difficulties, leading to economic stagnation or minimal growth. As businesses struggle to remain viable, consumers face dwindling financial prospects, exacerbating concerns over long-term financial stability in the region.
Beyond the financial sector, the sit-at-home directive has transformed into an enduring security and economic crisis, claiming at least 776 lives and dealing devastating blows to trade, education, and transportation.
The ongoing enforcement has disrupted supply chains, hindered academic activities, and stifled commercial operations, raising urgent concerns about the sustainability of such measures.
What you should know
- The sit-at-home protests enforced by the Indigenous People of Biafra (IPOB) since August 2021 have inflicted devastating economic and security damage across Southeast Nigeria, resulting in N7.6 trillion in economic losses.
- This was disclosed in a new report by SBM Intelligence assessing the toll of the weekly shutdowns, originally intended to demand the release of IPOB leader, Nnamdi Kanu.
- According to SBM Intelligence, the economic disruption caused by the weekly lockdowns has severely impacted commercial cities like Onitsha and Aba.