The Lagos Chamber of Commerce and Industry (LCCI) has raised alarm over the recent spike in petrol prices, with the Nigerian National Petroleum Company Limited (NNPCL) raising the pump price from N855 to N1,030 per litre.
The Chamber warned that the increase would further strain businesses already grappling with a tough operating environment.
In a statement signed by LCCI President Gabriel Idahosa, the Chamber expressed concern about the broader impact of this price surge.
“While we understand that the government’s plan to deregulate the oil and gas sector and eliminate fuel subsidies may be driving these price adjustments, the resulting uncertainties are severely disrupting business operations,” Idahosa stated.
The Chamber also highlighted confusion surrounding policy directions from the Ministry of Petroleum Resources, NNPCL, and other regulators.
It pointed to growing uncertainty about the relationship between NNPCL and the Dangote Refinery, noting that unclear communication has compounded the business environment’s challenges.
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Rising operational costs from logistics, power supply, and foreign exchange scarcity, combined with inflated third-party services, have left businesses struggling.
The LCCI noted that since the start of President Bola Tinubu’s administration, petrol prices have surged by 430%, exacerbating inflationary pressures and reducing consumer spending power.
LCCI called for clear policy direction and transparency, urging the government to clarify whether fuel subsidies have been fully removed and to provide more information on domestic fuel consumption.
It also recommended that crude oil supplied to local refineries be pegged in naira at an exchange rate of N1,000 to $1, to ease logistics and transportation costs, which could reduce food inflation.
The Chamber further emphasized the need for the full implementation of the Petroleum Industry Act (PIA) to deregulate the sector and attract foreign investment.
It urged the government to invest subsidy savings in infrastructure development to mitigate the economic impact of rising fuel costs.
LCCI concluded by urging the government to address Nigeria’s ongoing insecurity, which is affecting economic activity, and called for clearer communication to restore confidence in the market.
(Edited by Oludare Mayowa; omayowa@globalfinancialdigest.com; Newsroom: +234 8033 964 138)
