The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) has raised concerns over the recent surge in petrol pump prices, which have risen to N998 per litre in Lagos and N1,030 in Abuja. The association’s National President, Mr. Dele Oye, expressed his worries in a statement on Wednesday, highlighting the strain the price hike is placing on both businesses and households nationwide.
Oye warned that the sharp increase in fuel prices could significantly raise transportation costs, which in turn would exacerbate inflation and negatively impact small and medium-sized enterprises (SMEs). He emphasized that the price hike requires careful evaluation due to its potential ripple effects on various sectors of the economy, particularly in the pricing of 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 fuel is a primary driver of inflation, the rise in petrol prices will exacerbate the already high inflation rate in Nigeria.”
He also pointed out that households would feel the brunt of the price rise, not only in fuel costs but in everyday goods and services, leading to a vicious cycle of rising costs and economic hardship.
The NACCIMA president further noted that the increase in fuel prices would have a severe impact on micro and nano businesses, many of which rely on petrol generators to power their operations. For these businesses, which are already struggling with rising costs, the petrol price hike could lead to additional financial challenges.
