The association noted that the hike in fuel prices, which saw costs soar from N600 to N800 per litre at Nigerian National Petroleum Company Limited (NNPC) stations, poses a significant threat to businesses and consumers alike.
The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) has expressed deep concern over the impending rise in the price of Premium Motor Spirit (PMS), warning that a lack of stakeholders’ engagement and proper mitigation strategies could exacerbate economic tensions.
The association noted that the hike in fuel prices, which saw costs soar from N600 to N800 per litre at Nigerian National Petroleum Company Limited (NNPC) stations, poses a significant threat to businesses and consumers alike.
NACCIMA warned that this would likely trigger a surge in inflation, further eroding consumer purchasing power and placing additional strain on businesses already grappling with a challenging economic climate.
In a statement issued on Thursday, NACCIMA National President, Dele Kelvin Oye, condemned the suddenness of the proposed price hike, and criticised the absence of adequate notice or engagement with key stakeholders.
He expressed concern over the government's announcement that PMS prices would be determined by free market forces as mandated by the Petroleum Industry Act (PIA) of 2021.
"The implementation of this policy shift without proper consultation will have far-reaching implications for the Nigerian economy," Oye stated.
He called on the government to adopt measures that would soften the impact of the price adjustment and prevent further economic destabilization.
NACCIMA urged the federal government and the NNPC to prioritize constructive dialogue with businesses and other stakeholders to ensure a smooth transition and prevent further disruptions to the already fragile economic landscape.
He explained that NACCIMA is particularly concerned about the potential impact this decision could have on businesses, consumers, and the overall economic landscape.
The statement read, "The deregulation of PMS prices, coupled with the influence of foreign exchange (forex) illiquidity, is likely to result in significant volatility and unpredictability in fuel prices. This, in turn, will have a cascading effect on the cost of goods and services across all sectors of the economy.”
Oye noted that the possibility of a sharp increase in fuel prices, potentially exceeding the initial increase from N600 to N800 at NNPC station, is a grave concern.
"This will undoubtedly lead to a surge in inflationary pressures, eroding the purchasing power of consumers and putting immense strain on businesses already struggling to navigate the challenging economic environment.
"Furthermore, NACCIMA is deeply concerned about the impact on the labour market. The earlier press release by labour unions, demanding the withdrawal of the previous price increase, is a clear indication of the potential for social unrest and agitation.
"A significant price hike in PMS, without proper stakeholder engagement and mitigation strategies, is likely to further exacerbate tensions and disrupt economic activities," he stated.
NACCIMA called on the Minister of State Petroleum, NNPC Limited and the relevant government authorities to engage with stakeholders, including the business community, labour unions, and consumer advocacy groups, to develop a comprehensive plan to address the potential consequences of this policy change.
He said a more gradual and well-planned approach to PMS pricing is essential to ensure stability, predictability, and sustainable economic growth in Nigeria.
Oye added that NACCIMA stands ready to work with the government and all relevant stakeholders to find a solution that protects the interests of businesses, workers and consumers alike.
"We must ensure that any policy changes in the energy sector are implemented in a manner that promotes the growth and development of the Nigerian economy," he said.