The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) has raised concerns about the rising petrol pump prices in Lagos and Abuja, warning that this could trigger a cycle of economic hardship across the country.
Mr. Dele Oye, NACCIMA’s National President, highlighted this in a statement released on Wednesday in Lagos.
Oye noted that the prices, which have surged to N998 and N1,030 per litre respectively, are creating pressure on businesses and households nationwide.
He warned that the price hike could drive up transportation costs, worsen inflation, and significantly affect small and medium-sized enterprises.
Oye emphasized the need for a thorough assessment of the economic impacts, especially on pricing for goods, services, and transportation.
He said, “With transportation costs directly tied to fuel prices, this increase will serve as a catalyst for higher freight charges.”
“Given that fuel is a primary driver of inflation, the rise in petrol prices will exacerbate the already high inflation rate in Nigeria.”
“Households will find themselves paying more not only for fuel, but also for everyday goods and services, prompting a vicious cycle of rising costs and economic hardship.”
“The recent fuel price increase will have a profound impact on micro and nano businesses, many of which rely heavily on petrol generators to power their operations,”
Impact of petrol price increase on MSMEs
He emphasized that the economic outlook for SMEs could shift from potential growth to mere survival. This, he explained, would not only affect individual businesses but also hinder job creation and economic progress in communities across Nigeria.
The NACCIMA president urged the Nigerian National Petroleum Corporation Ltd. (NNPCL) to show the necessary goodwill in supporting the operations of the Dangote refinery. Such support, he suggested, could help stabilise local petrol prices, reduce Nigeria’s reliance on imported fuel, and promote national self-sufficiency.
Oye also called on the Central Bank of Nigeria to enhance its efforts in implementing monetary policies that stabilize or strengthen the Naira. He warned that rising importation costs, driven by currency depreciation, could further push up domestic fuel prices.
Backstory
Nairametrics reported yesterday that petrol prices at Nigerian National Petroleum Corporation (NNPC) Limited retail stations, which previously sold for N897 per litre in Abuja, have now risen to N1,030.
- At NNPC stations in Gwagwalada, Wuse, and Lugbe, Abuja, motorists lined up, waiting for attendants to begin fuel sales. In Lagos, prices have increased from N885 per litre to N998, with long queues forming at the stations.
- The adjustment follows reports of a possible price hike due to NNPCL’s withdrawal as an intermediary in the Dangote Refinery purchase deal, marking the second price increase by NNPC between September and October.