NACCIMA Reacts As NNPC Increases Fuel Price In Abuja, Lagos

The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) has decried the recent increase in the price of Premium Motor Spirit (PMS), better known as fuel or petrol.

Naija News reported earlier that the Nigerian National Petroleum Company Limited (NNPCL) announced a 14.8% hike in the price of petrol in Abuja, raising it to ₦1,030 per litre from ₦897.

This marks the second petrol price increase within the past month, following a previous rise in September when the price surged from ₦615 to ₦897 per litre.

Journalists who visited the NNPC Retail mega station in Abuja observed that many motorists expressed their shock and frustration over the latest price adjustment, highlighting the ongoing economic difficulties facing the nation.

The pump price of petrol was also increased in Lagos.

Reacting, in a statement issued on Wednesday, the National President of NACCIMA, Dele Oye, observed that the per litre prices, which had reached ₦998 and ₦1,030 per litre respectively, were placing a strain on businesses and households across the country.

Oye noted the possible financial effects of raising prices, cautioning that such a move might result in increased costs for moving goods, worsen inflation, and significantly affect small and medium-sized enterprises.

He mentioned that the choice, shaped by various fundamental elements, required a thorough review of its possible economic impacts, especially concerning the costs of products, 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.”

The NACCIMA president further mentioned that the general economic environment for small and medium-sized businesses could transition from promising expansion to merely staying afloat.

He elaborated that this change would affect not just individual businesses but also hinder the creation of new jobs and the growth of the economy in various communities throughout Nigeria.

The president of NACCIMA urged the Nigerian National Petroleum Corporation Ltd. to show the required positive attitude to back the operations of Dangote’s refinery.

He believed that doing so would likely lead to more stable prices for local gasoline, lessen Nigeria’s reliance on foreign fuel, and help the country achieve greater independence.

Oye also requested that the Central Bank of Nigeria improve its efforts in executing monetary strategies that either stabilize or fortify the Naira.

He pointed out that as the costs of importing goods increase due to the weakening of the currency, the prices of local fuel are expected to keep going up.

“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.

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