Abuja chamber of commerce warns of looming economic crises over fuel hikeĀ 

The chamber urged the federal government to not impose additional financial burdens on Nigerians but reverse the fuel price hike and reduce living costs.

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The Abuja Chamber of Commerce and Industry (ACCI) has warned that the recent increase in fuel prices in the country can lead to severe economic crisis.

The ACCI President, Emeka Obegolu, said this in an interview in Abuja on Thursday.

Mr Obegolu said the price hike could have widespread repercussions, particularly on the business community, which was already grappling with inflationary pressures and high exchange rates.

According to him, the increase in fuel prices directly exacerbates the cost of operations for businesses across all sectors.

He said: ā€œas fuel is a critical input in production and transportation, the price spike will lead to a corresponding rise in operational expenses.

ā€œThis escalation inevitably will result in higher prices for goods and services, which diminishes consumer purchasing power and reduces demand,ā€ he said.

The ACCI boss emphasised the vulnerability of Small and Medium Enterprises (SMEs), which formed the backbone of the Nigerian economy.

Mr Obegolu said businesses already operating on narrow margins, were especially susceptible to the adverse effects of the rising costs and had limited capacity to absorb such shocks.

ā€œWe also anticipate potential disruptions in the supply chain due to increased transportation costs, which can further exacerbate the challenges businesses are currently facing.

ā€œThe fuel price increase was neither anticipated nor expected, especially as the nation is still reeling from the effects of a previous price hike.

ā€œThe recent unrest, culminating in a 10-day industrial strike tagged #EndBadGovernance saw business activities severely disrupted, with incidents of looting and property destruction adding to the woes of the business community,ā€ he said.

Mr Obegolu called on the federal government to take immediate action by reversing the fuel price hike and reducing living costs rather than imposing additional financial burdens on Nigerians.

He pointed out that businesses struggling to survive may be forced to shut down, while those already closed might find it impossible to recover without government intervention.

Mr Obegolu cited a recent roundtable organised by the ACCI on ā€œImplementing an Effective Price Control System in Nigeriaā€.

He said stakeholders at the meeting, including government officials, policymakers and industry experts, discussed the need for a robust regulatory framework to address the rising cost of goods and services.

He said the discussions reiterated the importance of price control in stabilising the economy and protecting consumers.

The ACCI boss cautioned that the recent fuel price hike could further aggravate Nigeriaā€™s economic situation.

The chamber urged the government to prioritise the construction of modular refineries, which would reduce the nationā€™s reliance on imported refined petroleum products and foster a more sustainable economic environment.

Mr Obegolu then restated ACCIā€™s commitment to continually advocate for policies that could create a conducive business environment and promote long-term economic growth in Nigeria. 

(NAN)