LAGOS — Fresh concerns have emerged across Nigeria’s economic landscape as major business and labour groups warn that soaring fuel prices are pushing companies to the brink, threatening widespread job losses and deepening the country’s cost-of-living crisis.
Key stakeholders, including the Nigeria Employers’ Consultative Association (NECA), Nigeria Labour Congress (NLC), Lagos Chamber of Commerce and Industry (LCCI), and the Association of Small Business Owners of Nigeria (ASBON), raised alarm on Monday over what they described as a worsening “economic paradox” — where rising global oil prices translate into hardship rather than gains for Africa’s largest oil producer.
Their concerns come as petrol prices continue to climb across major cities such as Lagos and Abuja, reaching as high as ₦1,370 per litre in some areas, despite crude oil prices slipping below $100 per barrel.
An Oil-Rich Nation Under Pressure
The Director-General of NECA, Adewale-Smatt Oyerinde, described the situation as alarming, noting that Nigeria’s dependence on expensive fuel is eroding business sustainability.
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“What we are witnessing is Nigeria’s oil paradox,” he said. “Rising crude prices are pushing up domestic energy costs, squeezing businesses and worsening the cost of living.”
According to him, the ripple effects of rising fuel prices are immediate and far-reaching — from increased transportation costs to higher food prices and escalating operational expenses for businesses.
He warned that industries such as manufacturing, agriculture, and logistics are already under severe strain, particularly those reliant on diesel, which is nearing ₦1,800 per litre.
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“For many firms, current energy costs are no longer sustainable. Profit margins are shrinking, and businesses are being forced to either pass on costs or scale down operations,” Oyerinde added.
Labour Raises Alarm Over Jobs
Echoing similar concerns, the President of the NLC, Joe Ajaero, warned that rising fuel prices are placing both jobs and livelihoods at serious risk.
He noted that while the Federal Government may be earning increased revenue due to global oil market dynamics, Nigerians are bearing the brunt of the crisis.
“The government is making more money, but citizens are suffering,” Ajaero said. “Part of these funds should be used to cushion the impact on Nigerians. Businesses and jobs are clearly at risk.”
He also questioned the effectiveness of proposed relief measures, pointing out that previously announced wage awards are yet to be implemented.
Small Businesses Struggle to Survive
The Director-General of LCCI, Dr. Chinyere Almona, highlighted the broader economic implications, linking the crisis to geopolitical tensions in the Middle East, particularly involving Iran.
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She warned that disruptions in global supply chains and exchange rate volatility could further drive up the cost of imports, including raw materials, machinery, and essential goods.
Similarly, ASBON President Dr. Femi Egbesola said small businesses are facing a perfect storm of rising costs — from energy and imports to financing — worsened by the depreciation of the naira.
“If urgent steps are not taken, we could see a ripple effect of job losses and business closures across the country,” he cautioned.
Consumers Feel the Heat
Across Abuja and Lagos, consumers are already grappling with the reality of higher fuel costs.
A civil servant, Isa Kabir, described the situation as unbearable, noting that the rapid increase in petrol prices within weeks is unprecedented.
“From ₦880 to over ₦1,300 per litre in just three weeks is excessive,” he said. “In a country without a social safety net, this will push more people into poverty.”
A commercial driver, Michael Ade, lamented that ₦10,000 now buys barely seven litres of petrol — a sharp drop from about 12 litres just a month ago — forcing transport fares to nearly double.
Market Instability Persists
Industry analysts say the instability is partly driven by panic among depot operators following recent price adjustments by local refiners, including the Dangote refinery.
The Chief Executive Officer of Petroleumprice.ng, Olatide Jeremiah, noted that uncertainty in global oil markets is likely to keep prices volatile in the coming weeks.
Meanwhile, the President of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gillis-Harry, urged Nigerians to avoid panic buying, warning that crude oil price fluctuations will continue to affect domestic fuel prices.
Government Promises Relief
In response, governors elected on the platform of the All Progressives Congress have pledged to roll out palliative measures to cushion the impact on citizens.
The Chairman of the Progressive Governors Forum and Governor of Imo State, Hope Uzodimma, said the measures would focus on food security, support for small businesses, and targeted social interventions.
The governors acknowledged that the ongoing global crisis could heighten inflationary pressures and pledged closer collaboration to mitigate its impact.
A Growing Economic Storm
Despite these assurances, many stakeholders remain skeptical, warning that without urgent structural reforms — including improvements in the energy sector and reduced reliance on fuel imports — Nigeria risks sliding into deeper economic distress.
For now, businesses and households alike continue to grapple with rising costs, shrinking incomes, and an uncertain economic future, as the nation’s fuel crisis shows no immediate signs of easing.
