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Fuel hike: ACCI warns of looming 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. (NAN
President Bola Ahmed Tinubu has officially dissolved the board of the Nigerian National Petroleum Company Limited (NNPCL), which includes the removal of Group Chief Executive Officer (GCEO) Mele Kyari and Chairman Pius Akinyelure, along with all other board members appointed in November 2023.
In an announcement, the President introduced an 11-member restructured board, appointing Engineer Bashir Bayo Ojulari as the new GCEO and Ahmadu Musa Kida as the Non-Executive Chairman. These changes are effective immediately, as stated by Bayo Onanuga, Special Adviser to the President on Information & Strategy.
Emphasizing the need for “enhanced operational efficiency, restored investor confidence, and a more commercially viable NNPC,” President Tinubu exercised his authority under Section 59(2) of the Petroleum Industry Act (PIA) 2021 to implement this significant reorganization.
The newly formed board comprises Adedapo Segun, who continues as Chief Financial Officer (CFO), alongside six non-executive directors representing Nigeria’s geopolitical zones: Bello Rabiu (North West), Yusuf Usman (North East), Babs Omotowa (North Central), Austin Avuru (South-South), David Ige (South West), and Henry Obih (South East). Additionally, Mrs. Lydia Shehu Jafiya, Permanent Secretary of the Federal Ministry of Finance, and Aminu Said Ahmed, representing the Ministry of Petroleum Resources, will serve on the board.
The President has charged the new board with conducting a strategic review of NNPC-operated and Joint Venture assets to optimize value. This includes increasing crude oil production to 2 million barrels per day (bpd) by 2027 and 3 million bpd by 2030, boosting gas production to 8 billion cubic feet daily by 2027 and 10 billion by 2030, and expanding NNPC’s refining capacity to 200,000 bpd by 2027 and 500,000 bpd by 2030. The administration also aims to attract $30 billion in oil investments by 2027 and $60 billion by 2030, building on the $17 billion secured in 2024.
Ahmadu Musa Kida, the new Chairman, is a Borno-born engineer and former Deputy Managing Director of Total Nigeria. He also has a background in basketball, having served as the ex-president of the Nigeria Basketball Federation (NBBF). Bashir Bayo Ojulari, the newly appointed GCEO, hails from Kwara State and was previously the Executive Vice President of Renaissance Africa Energy, where he led a $2.4 billion acquisition of Shell’s Nigerian assets. He brings extensive experience from Elf and Shell, having worked across Europe and the Middle East.
President Tinubu expressed gratitude to the outgoing board for their contributions, particularly their efforts in reviving the Port Harcourt and Warri refineries, which have resumed production after years of dormancy. Analysts view this leadership change as part of Tinubu’s broader reforms in the oil sector, following last year’s removal of fuel subsidies and the promotion of private refinery investments. With the new team established, there are high expectations for enhanced transparency, efficiency, and profitability within Nigeria’s state oil enterprise.
Heineken Lokpobiri, minister of state for petroleum resources, says the federal government plans to commence implementing the drill-or-drop provisions of the Petroleum Industry Act (PIA).
Section 94 of the PIA gives operators a period of three years to begin oil production or relinquish the assets to the federal government.
Speaking during the Cross Industry Group (CIG) meeting held on Tuesday in Florence, Italy, Lokpobiri said it is in the best interest of the country that all inactive wells go to work.
He said the federal government, under the leadership of President Bola Tinubu, has provided every necessary incentive to ensure international oil companies (IOCs) in Nigeria run smoothly and profitably.
“Now, it is imperative for these industry players to match the government’s efforts with increased investment by announcing final investment decisions (FIDs),” he said.
Furthermore, Lokpobiri discussed “the challenges, expectations, and measures to enhance the sector’s contributions towards domestic energy needs and regional expansion across Sub-Saharan Africa”.
He emphasised that while IOCs have highlighted engineering, procurement, and construction (EPC) contractors as a challenge, “EPCs will not come unless they see strong commitments from industry players”.
“The government has done its part to provide the requisite and investment-friendly fiscals, the ball is now in the court of the IOCs and other operators to make strategic investment decisions that will drive increased production and sustainability in the sector,” he said.
“We must also recognise that domestic crude supply is essential to national energy security. The best solution to this challenge lies in increasing production, which will ensure a balance between domestic supply obligations and external commitments.”
The minister further urged industry players to explore collaborative measures, such as shared resources for contiguous assets and the release of underutilised assets to operators ready to invest in production.
The minority caucus in the house of representatives has condemned the killing of 16 Kano-bound hunters in Edo state.
On Thursday, a mob in the Uromi area of Edo killed 16 hunters of northern descent who were travelling from Elele, Rivers state.
The travellers were attacked and lynched after some vigilance group members raised the alarm on suspicion that they were kidnappers.
The Edo state government said 14 suspects arrested in connection with the killing would be transferred to Abuja for further interrogation.
During a visit to some of the families of the victims at Bankure LGA in Kano, Monday Okpebholo, governor of Edo, assured that justice would be served.
In a statement issued on Monday, the minority caucus described the killing of the hunters as “barbaric”.
“We find such brutal killings of innocent Nigerians in any part of the country by lawless mobs very reprehensible, and if allowed to fester without being put in check by responsible organs of the federal government, such actions could threaten the peace and unity of the country,” the statement reads.
The lawmakers asked Nigerians never to resort to jungle attacks on fellow citizens but to always report any concerns to security agencies.
“We are a nation under the rule of laws, and our law enforcement agencies are always available to partner with every Nigerian to assuage their concerns,” the caucus said.
While noting that the incident is “already setting emotions on edge” in parts of the country, the legislators urged President Bola Tinubu to ensure that the security agencies investigate this matter and bring the perpetrators to justice.
“Also, adequate compensation should be paid to the affected families,” the caucus said.
The lawmakers implored Nigerians to remain calm, peaceful, and law-abiding and allow the federal and state governments to investigate the matter and ensure justice is served.
The statement was signed by Kingsley Chinda, minority leader; Ali Isa, minority whip; and Aliyu Madaki, deputy minority leader.