The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) has voiced significant concerns over the impending rise in the price of Premium Motor Spirit (PMS). The association has warned that a lack of stakeholder engagement and proper mitigation strategies could worsen economic tensions across the country.
Impact of Fuel Price Hike on Economy
NACCIMA highlighted the recent surge in fuel prices, which saw costs escalate from N600 to N800 per litre at Nigerian National Petroleum Company Limited (NNPC) stations. The association warned that this sharp increase threatens both businesses and consumers, likely triggering a surge in inflation, eroding consumer purchasing power, and further straining an already challenging economic environment.
Lack of Stakeholder Engagement
Dele Kelvin Oye, NACCIMA’s National President, condemned the suddenness of the proposed price hike and criticized the lack of adequate notice or consultation with key stakeholders. Oye expressed concern over the government’s decision to allow PMS prices to be determined by free market forces, as mandated by the Petroleum Industry Act (PIA) of 2021. He emphasized that implementing such a policy shift without proper consultation could have far-reaching implications for the Nigerian economy.
Call for Government Action
NACCIMA has urged the federal government and NNPC to prioritize constructive dialogue with businesses and other stakeholders. The association believes that this approach is crucial to ensuring a smooth transition and preventing further disruptions to Nigeria’s already fragile economic landscape.
Concerns Over Economic and Social Stability
The association is particularly worried about the potential volatility and unpredictability in fuel prices, which could result from deregulation and forex illiquidity. NACCIMA warned that these factors might lead to a cascading effect on the cost of goods and services across all sectors, thereby heightening inflationary pressures. This, in turn, could erode consumer purchasing power and place additional strain on businesses.
Potential for Social Unrest
NACCIMA also expressed concern about the potential impact on the labor market. The recent demands by labor unions for the withdrawal of the previous price increase signal the potential for social unrest and agitation. A significant price hike in PMS, without proper stakeholder engagement and mitigation strategies, is likely to exacerbate tensions and disrupt economic activities.
NACCIMA’s Call for a Comprehensive Plan
The association has called on the Minister of State Petroleum, NNPC Limited, and relevant government authorities to engage with stakeholders, including the business community, labor unions, and consumer advocacy groups. NACCIMA advocates for a more gradual and well-planned approach to PMS pricing to ensure stability, predictability, and sustainable economic growth in Nigeria.
Commitment to Collaboration
NACCIMA stands ready to collaborate with the government and all relevant stakeholders to find a solution that protects the interests of businesses, workers, and consumers. The association emphasized that any policy changes in the energy sector should be implemented in a way that promotes the growth and development of the Nigerian economy.
Source: saharareporters.com
