NACCIMA raises concerns over petrol price hike, says it’ll worsen inflation

The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) has expressed concerns over the increase in petrol pump prices.

Dele Oye, national president, NACCIMA, spoke in a statement on Wednesday in Lagos.

Oye said the prices, which were increased to N998 and N1,030 per litre in Lagos and Abuja, respectively, were placing a strain on businesses and households across the country.

He said the increase could lead to higher transportation costs, exacerbate inflation and severely impact small and medium-sized businesses.

Oye said the decision, influenced by several underlying factors, warranted careful examination of its potential repercussions on the economy, particularly in the realms of pricing for goods, services and transportation.

“With transportation costs directly tied to fuel prices, this increase will serve as a catalyst for higher freight charges,” Oye said.

“Given that petrol 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.”

According to Oye, the overall economic landscape for small and medium enterprises (SMEs) can shift from potential growth to survival.

He said it would not only impact individual enterprises but also limit job creation and economic development in communities across Nigeria.

The NACCIMA president called on the Nigerian National Petroleum Company (NNPC) Limited to demonstrate the necessary goodwill to support Dangote Petroleum Refinery operations.

Oye said it would ideally stabilise local petrol prices, reduce Nigeria’s dependence on imported petrol and contribute to national self-sufficiency.

He also called on the Central Bank of Nigeria (CBN) to be more effective in implementing monetary policies that stabilise or strengthen the naira.

“It is imperative that we advocate for robust strategies that not only stabilise fuel prices but also bolster domestic production capabilities, ensuring that the Nigerian economy can navigate these turbulent times more effectively,” he said.

“As stakeholders, NACCIMA will continue to engage with government entities to encourage a more conducive climate for growth and sustainability.”

Oye also said as importation costs rise due to currency depreciation, domestic petrol prices would likely continue on an upward trajectory.