Opposition against the hike in petrol price by the Nigerian National Petroleum Corporation Limited, NNPCL, yesterday, swelled as the Nigerian Association of Chambers of Commerce Industry Mines and Agriculture, NACCIMA, the Peoples’ Democratic Party, PDP, former Vice President Abubakar Atiku, civil society organizations, CSOs, among others, insisted on the immediate reversal of the price increase to the old regime.
Recall that Nigeria Employers Consultative Association, NECA, Nigeria Labour Congress, NLC, Baptist Conference, and Association of Senior Staff of Banks, Insurance and Financial Institutions, ASSBIFI, among others, had earlier demanded for the immediate reversal of the hike.
This came as Chairman, Alliance on Surviving COVID-19 and Beyond, ASCAB, Femi Falana, SAN, contended that the NNPCL’s decision to fix prices of petrol was illegal, a nullity and void, saying it contravenes Section 205 of the Petroleum Industry Act.
Reacting to the increase, President of NACCIMA, Dele Oye, said it will worsen the plight of businesses and households in Nigeria.
Appraising economic implications of the hike, Oye noted that it will lead to increase in transportation costs which will serve as catalyst for higher freight charges, exacerbate the already high inflation rate in the country, and further strain the already meagre resources of micro, small and medium enterprises, MSMEs, that rely heavily on petrol generators to power their operations.
He said: “Many SMEs rely on affordable logistics to maintain competitiveness in the market, however, as freight charges rise, they may face tough choices: either pass the increased costs onto consumers or absorb the expenses, which could erode their profitability. This situation can lead to reduced investment in growth or innovation, causing stagnation in the sector.
“The overall economic landscape for SMEs could thus shift from one of potential growth to one of survival, which would not only impact individual enterprises but also limit job creation and economic development in communities across Nigeria.
“The NNPC-led increase in petrol price poses significant challenges for Nigerians. Households will grapple with inflated costs of living, while businesses will face increased operational costs that may lead to reduced profit margins and, ultimately, job cuts.”
The Peoples Democratic Party, PDP, also asked the President Bola Tinubu-led All Progressives Congress, APC, administration, to immediately reverse its anti-people policies to reduce the worsening economic condition of Nigerians.
In a communique at the end of its 78th meeting in Abuja, yesterday, Chairman of the PDP’s Board of Trustees, BoT, Senator Adolphus Wabara, who read the communiqué said: “The BoT demands that the APC administration immediately review its policies and take immediate steps to ensure reduction in the price of fuel, make key investments towards food production, revamp our manufacturing sector to stimulate employment opportunities and mitigate the suffering of Nigerians.”