ACCI warns of looming economic crises amid fuel hike
The Abuja Chamber of Commerce and Industry (ACCI) has issued a grave warning regarding the recent surge in fuel prices, highlighting its potential to precipitate severe economic turmoil.
ACCI President Emeka Obegolu expressed concerns that this increase could have extensive repercussions, particularly affecting the business sector, which is already contending with high inflation and exchange rates.
Obegolu pointed out that the rise in fuel prices directly inflates operational costs for businesses across various industries. He elaborated that, since fuel is essential for production and transportation, the recent price spike will inevitably lead to increased operational expenses. This, in turn, will cause a rise in the costs of goods and services, eroding consumer purchasing power and dampening demand.
He underscored the heightened vulnerability of Small and Medium Enterprises (SMEs), which are crucial to the Nigerian economy. These businesses, operating on tight margins, are particularly susceptible to the negative impacts of rising costs and have limited capacity to absorb such financial strains.
Obegolu also anticipated possible disruptions in the supply chain due to escalated transportation costs, which could further intensify the challenges faced by businesses. He noted that the recent fuel price hike was unforeseen, especially as the country is still grappling with the repercussions of a previous increase.
The recent turmoil, marked by a 10-day industrial strike known as #EndBadGovernance, had already severely disrupted business operations, including incidents of looting and property damage that compounded the difficulties faced by the business community.
Obegolu urged the Federal Government to promptly reverse the fuel price increase and focus on reducing living costs rather than imposing additional financial strains on Nigerians. He warned that many struggling businesses might be forced to shut down, and those already closed could face insurmountable challenges without governmental support.
In addition, Obegolu referred to a recent ACCI-organized roundtable on “Implementing an Effective Price Control System in Nigeria,” where stakeholders, including government representatives, policymakers, and industry experts, deliberated on the necessity of a strong regulatory framework to tackle rising costs.
He emphasized that the discussions highlighted the critical role of price control in stabilizing the economy and safeguarding consumers. Obegolu cautioned that the recent fuel price hike could exacerbate Nigeria’s economic difficulties and urged the government to prioritize the development of modular refineries. Such measures would reduce the nation’s dependence on imported refined petroleum products and support a more sustainable economic environment.
Obegolu reaffirmed the ACCI’s commitment to advocating for policies that foster a favorable business climate and promote sustained economic growth in Nigeria.
