- The increase in petrol price from ₦617 to ₦897 per litre by the Nigerian National Petroleum Company Limited (NNPCL) has sparked a variety of reactions
- Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) criticised the lack of prior notice and clear explanation from the government and NNPC regarding the petrol price surge
- Lagos Chamber of Commerce and Industry, (LCCI) predicted severe consequences for many businesses including inflation and job losses, due to the recent price increase
In reaction to the recent petrol price increase by the Nigerian National Petroleum Company Limited (NNPCL), the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) along with the Organized Private Sector (OPS) have expressed serious concerns about the recent development, noting its potential adverse impact on businesses and consumers countrywide.
The National President of NACCIMA, Dele Kelvin Oye Esq., has issued a statement urging the Federal Government to engage in dialogue with essential stakeholders, including the organised private sector and labour unions, to address the concerns related to the price increase and its anticipated impact on the economy.
NACCIMA criticises lack of transparency in price hike
The statement reads, “The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture, NACCIMA, expresses its concerns over the recent increase in the pump price of petrol to over N800 per litre at NNPC filling stations across the country.
“While we understand the complex factors that can influence fuel prices, such as global oil market dynamics and exchange rate fluctuations, we are troubled by the lack of prior notice and clear explanations provided by the government and the Nigerian National Petroleum Company Limited, NNPC, regarding this development.
“NACCIMA calls on government and NNPC to engage in constructive dialogue with relevant stakeholders, including the organized private sector and labour unions, to address concerns raised about this price increase and its potential effects on the economy.
NACCIMA further requested that the authorities clarify the NNPC’s financial reporting, which has recently shown discrepancies about the company's financial health and obligations.
ASBON, LCCI cite inflation, other severe impact on businesses
Relatedly, the Association of Small Business Owners of Nigeria, ASBON, and Lagos Chamber of Commerce and Industry, (LCCI) have said that the recent surge is likely to devastate many businesses, particularly Micro, Small and Medium Enterprises (MSMEs), contribute to increased inflation, and result in significant job losses.
While LCCI admitted that the petrol subsidy is not sustainable, it pointed out the difficulties associated with removing it and introducing a major fuel price hike. ASBON, on the other hand, emphasised that the government should have first enhanced critical sectors and infrastructure before considering any increase in petrol prices.
Almona warns of job losses, advocates for local refinery expansion
Dr Chinyere Almona, the Director General of the LCCI said, “The impact on businesses will be severe, with fuel prices affecting supply and logistics, power generation, transportation, and factory operations. The cost of doing business will skyrocket, prices of goods will rise, and some firms may shut down due to low demand in the face of weakening consumer purchasing power. Of course, this will be followed by job losses.
“LCCI advocates for a more sustainable approach. Supporting the development of additional local refineries to process our crude for local consumption and potential export across Africa is the way forward. This long-term strategy is crucial for the stability and growth of our economy.”
From Shonekan’s 70 kobo to Tinubu’s N897: See the figures of Nigeria's major fuel hikes
From 1993 to 2024, Nigeria had seen several major fuel price hikes. The most recent increase under Tinubu’s regime has resulted in an uproar as Nigerians expressed their dissatisfaction.
TheRadar reviewed Nigeria's major fuel price hikes from the era of Chief Ernest Shonekan to the current administration.