Rising Petrol Prices to Drive Up Transport Costs, Inflation, and Harm SMEs – NACCIMA

The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) has raised concerns over the recent surge in petrol prices in Lagos and Abuja. The association warns that the sharp increases, with prices now at N998 and N1,030 per litre, will significantly raise transportation costs, fuel inflation, and heavily strain small and medium-sized enterprises (SMEs).

In a statement, NACCIMA National President, Mr. Dele Oye, highlighted that businesses and households nationwide are feeling the pressure of rising fuel costs. He cautioned that the price hikes would have far-reaching consequences on the economy, particularly affecting the cost of goods, services, and transportation.

“With transportation costs directly linked to fuel prices, this spike will inevitably lead to higher freight charges,” Oye said. “Fuel is a major factor in inflation, and this increase will worsen the already elevated inflation rate in Nigeria.”

He noted that households would not only face higher fuel expenses but also see the cost of everyday goods and services rise, creating a cycle of increasing economic hardship. SMEs, many of which depend on petrol-powered generators, are particularly vulnerable and may see their growth potential diminish, shifting focus to mere survival.

Oye emphasized that the ripple effects would extend beyond individual businesses, limiting job creation and stalling economic progress across communities in Nigeria.

He called on the Nigerian National Petroleum Corporation Ltd. (NNPCL) to support Dangote refinery operations, which he believes could help stabilize local petrol prices, reduce reliance on imports, and boost national self-sufficiency.

He also urged the Central Bank of Nigeria (CBN) to strengthen its monetary policies to stabilize or bolster the Naira, helping to ease economic pressures across the country.

He noted that as importation costs rise due to currency depreciation, domestic fuel prices would likely continue on an upward trajectory.

“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 reassured.