Fuel Hike: ACCI warns of looming economic crises

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 crises.

The ACCI President, Emeka Obegolu, said this in an interview with the News Agency of Nigeria (NAN) in Abuja on Thursday.

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: “as fuel is a critical input in production and transportation, the price spike will lead to a corresponding rise in operational expenses.

“This escalation inevitably will result in higher prices for goods and services, which diminishes consumer purchasing power and reduces demand,” he said.

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

Obegolu said that 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.

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

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

“The 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,” he said.

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.

Obegolu cited a recent roundtable organised by the ACCI on “Implementing an Effective Price Control System in Nigeria”.

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 Nigeria’s economic situation.

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

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

The Federal Government, through the Debt Management Office, on Wednesday announced plans to issue N500 million dollars local bond to boost dollar liquidity.

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed this on Thursday in Lagos at an investor meeting for the bond issuance.

Edun assured Nigerians that the economy was on the trajectory of growth, adding that dollar funding was critical for the exchange rate to stabilise.

According to him, in terms of investments and stabilising the economy, it is important to have adequate foreign exchange.

He said that though there had been improvements in the flow of foreign exchange into the economy, the dollar-denominated bond would further boost FX liquidity.

He said that this transaction was aimed at improving the external reserves and supporting the exchange rates, which were critical elements of stabilising the economy and preparing it for investment and growth.

(NAN)

We generated N30.2 bn revenue in three months – Kano NCS Comptroller

The Kano Area command of the Nigeria Customs Service (NCS), says it generated N30.2 billion in revenue between January and March 2024.

The Area Comptroller, Mr Dauda Chana, disclosed this in an interview with the News Agency of Nigeria (NAN) on Thursday in Kano.

NAN reports that the Kano area command covers Kano State and Jigawa.

Chana said there was a significant increase in the revenue generation profile of the command when compared to the same period in 2023 when N9.5 billion was realised within the same period.

The comptroller said already the area command has introduced more sensitive security measures to prevent all forms of smuggling in the area.

“We have already positioned our officers at strategic locations to deal decisively with all those involved in the illegal smuggling of materials.

“The area command has deployed officers at border posts in Maigatari, Gumel Local Government Area, Jigawa, to intensify efforts at mitigating activities of smugglers.

Read Also: Kano NCS generated N6.9bn in November – Comptroller

“The same applied to officers at the Jeke outpost in Babura Local Government Area of Jigawa.

“We are battle-ready to end smuggling through our various strategies to pave the way for arrest and prosecution of those involved in illegal businesses,” he said.

Chana appealed to traditional rulers and stakeholders, especially those in border areas, for their support and sensitisation of their residents on the negative effects of smuggling on the nation’s economy.

“We have also reached out to youths in the border communities, to assist our field officers with required intelligence that will assist in curbing all forms of smuggling activities.

“The command’s area of coverage is a no-go area for smugglers as officers have been stationed at identified illegal smuggling routes to ensure arrests and prosecution of offenders,’’ Chana said.

The area commander, however, solicited the support of stakeholders in encouraging residents to shun smuggling and embrace the export of locally produced goods.

(NAN)