Nigerian Businesses and Households Struggle as Petrol Pump Prices Soar
The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) has sounded the alarm over the rising petrol pump prices in Lagos and Abuja, warning of devastating economic consequences for businesses and households. According to NACCIMA’s National President, Mr Dele Oye, the current prices of N998 and N1,030 per litre are putting a significant strain on the economy.
The price hike is expected to lead to higher transportation costs, exacerbate inflation, and severely impact small and medium-sized enterprises (SMEs). Oye emphasized that the decision is influenced by various underlying factors, requiring a careful examination of its potential repercussions on the economy, particularly in the realms of pricing for goods, services, and transportation.
The statement released by NACCIMA highlighted the consequences of the price increase, stating that transportation costs will increase, households will pay more for fuel and everyday goods, and micro and nano businesses will struggle to stay afloat. Oye warned that the economic landscape for SMEs will shift from potential growth to survival, limiting job creation and economic development in communities across Nigeria.
To mitigate the effects, Oye called on the Nigerian National Petroleum Corporation Ltd. to demonstrate goodwill in supporting Dangote refinery operations, which would stabilize local petrol prices, reduce dependence on imported petrol, and contribute to national self-sufficiency. He also urged the Central Bank of Nigeria to implement more effective monetary policies to stabilize or strengthen the Naira, acknowledging that currency depreciation will continue to drive up domestic fuel prices.
The NACCIMA president emphasized the importance of advocating for robust strategies that not only stabilize fuel prices but also bolster domestic production capabilities, enabling the Nigerian economy to navigate these challenging times more effectively. As stakeholders, NACCIMA will continue to engage with government entities to encourage a more conducive climate for growth and sustainability.
The rise in petrol pump prices is a significant concern for businesses and households in Nigeria, and it is crucial that the government and relevant stakeholders take immediate action to address this issue and protect the economy.
