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, yesterday, raised fresh concerns over the worsening impact of rising global oil prices on the country’s economy.

They also warned of looming business closures and job losses, noting that businesses and households are facing mounting pressure as energy costs surged.

The business groups spoke yesterday as the price of petrol remained high in Lagos, Abuja and other parts of the country despite the price of crude falling below $100 per barrel.

However, the 31 governors of the All Progressives Congress, APC, rose from a meeting late Sunday night, promising to roll out palliative measures to cushion the effect of the increase in the price of petroleum products caused by the ongoing Middle East crisis.

NECA noted that the spike in crude oil prices, rather than translating into economic gains, is creating a paradox in Nigeria, where increased oil revenues are accompanied by rising production and living costs.

This trend, NECA warned, is eroding purchasing power, squeezing profit margins, and threatening the survival of businesses across key sectors.

Director-General of NECA, Adewale-Smatt Oyerinde, who raised the concern, described the situation as alarming, stressing that the current trajectory could trigger widespread economic hardship if urgent measures are not taken.

“What we are witnessing is Nigeria’s oil paradox. Rising crude oil prices are pushing up domestic energy costs, squeezing businesses and worsening the cost of living for citizens,” he said.

He pointed out that fuel prices had surged sharply in recent days, with petrol selling above N1,300 per litre in some areas, while diesel prices were approaching N1,800 per litre, underscoring the direct impact of global oil market fluctuations on the domestic economy.

Oyerinde emphasised that energy costs remain central to economic activities, noting that any increase in fuel prices has immediate and far-reaching consequences.

“Once fuel prices rise, the effects are immediate and widespread — transport costs increase, food prices rise, and the overall cost of doing business escalates,” he stated.

He further warned that businesses, particularly in manufacturing, agriculture, and logistics, are already under severe strain as operating costs continue to climb.

The NECA boss added: “For many firms that rely on diesel for operations, current price levels are becoming increasingly difficult to sustain. Profit margins are shrinking, and businesses are being forced to either pass on costs or scale down operations.”

He explained that while the Middle East crisis has contributed significantly to the surge in global oil prices, the situation has also exposed long-standing structural weaknesses within Nigeria’s energy sector, including under-investment, poor infrastructure and supply inefficiencies.

“This situation is not only driven by external factors; it is also reflecting ongoing constraints within the energy value chain, including supply inefficiencies and infrastructure limitations,” Oyerinde said.

He cautioned that failure to address these challenges promptly could lead to dire consequences for the economy.

“If this trend continues unchecked, we risk business closures, job losses, and a deeper cost-of-living crisis,” he warned, and called on government to urgently stabilise the downstream sector and provide targeted support for vulnerable industries.

He also stressed the need for long-term reforms, noting that Nigeria’s economic resilience will depend not on oil price movements, but on how effectively the country manages its resources and addresses systemic challenges.

“This is a moment to strengthen institutions, improve transparency, and invest in sustainable energy solutions,” he said.

Soaring fuel prices threaten businesses, jobs, says NLC

Speaking in a similar vein, President of the Nigeria Labour Congress, NLC, Joe Ajaero, said that soaring fuel prices are putting businesses and jobs at risk.

According to him, President Bola Tinubu and the government do not need intervention from organised labour or the employers’ body to understand that the Middle East crisis is having a serious negative impact on businesses, jobs and Nigerians.

He said: “This crisis has brought both gains and losses for the government. The government is making huge revenues from the crisis, which has also doubled the budget benchmark. Clearly, this is more money for the government.

“The government should use part of these funds to cushion the impact on citizens. It is a statement of fact that businesses and jobs are at risk. Even the President does not have to wait for interventions from labour and employers to know that citizens need relief.

‘’The government must know how to manage emergencies. Emergencies are unplanned and unprepared for; that is why they are called emergencies.

“We hear that APC governors are planning to roll out some relief measures. What kind of relief measures are they planning? The wage award announced by government two years ago has still not been paid. Civil servants are still battling over it.”

LCCI, ASBON react

On her part, the Director General of Lagos Chamber of Commerce and Industry, LCCI, Dr. Chinyere Almona, said: “Rising geo-political tensions linked to the Iran conflict in the Middle East has triggered volatility in global energy markets, potentially increasing transportation and logistics costs.

“With the risk of exchange-rate volatility, amid disruptions to global supply chains, renewed pressure in the foreign exchange market could increase the cost of imported raw materials, machinery, pharmaceuticals, and food items, thereby pushing up production and consumer prices.”

Similarly, President of Association of Small Business Owners of Nigeria, ASBON, Dr Femi Egbesola, stated: “The current situation of rising global uncertainty raises genuine concerns.

“Combined with depreciation of the naira, small businesses are facing higher costs for imports, raw materials, energy, and financing, which significantly weakens our ability to survive and grow.

“If appropriate steps are not taken to mitigate effects of the crisis, this could trigger a ripple effect of job losses, and even business closures.”

Consumers groan as petrol hits N1,371/litre in Abuja, Lagos, others

Meanwhile, petrol stations in Abuja again raised the price of petrol yesterday, following a recent increase in the gantry price by Dangote Refinery, with NIPCO selling at N1,371 per litre and AYM Shafa at N1,370 per litre, among the highest rates recorded.

Checks by Vanguard also showed that NNPC Retail increased its pump price to N1,361 per litre, up from N1,261 per litre last week.

Dangote’s partner station, MRS, similarly raised its price to N1,367 per litre from N1,270 per litre previously.

The latest adjustments indicated that petrol prices have risen by about 55 per cent in the past three weeks, following the initial increase by Dangote Refinery.

After the first gantry price hike, retail outlets in Abuja adjusted pump prices on March 3, with NNPC Retail selling at N975 per litre, up from N875, while AYM Shafa increased its price to N960 from N880 per litre.

Three days later, marketers raised prices again, with NNPC selling at N1,068 per litre and AYM Shafa at N1,098 per litre.

A further increase in the gantry price triggered multiple hikes on Monday, March 9. NNPC initially raised its pump price to N1,161 per litre before increasing it again later in the day to N1,267 per litre. AYM Shafa followed a similar pattern, moving from N1,230 per litre in the morning to N1,300 per litre by the close of business.

Prices dipped slightly two days later, with NNPC selling at N1,161 per litre and AYM Shafa at N1,230 per litre. However, the relief was short-lived, as prices climbed again three days later to N1,267 per litre at NNPC Retail and N1,300 per litre at AYM Shafa.

It’s becoming unbearable, consumers react

Speaking to Vanguard at NNPC Retail outlets in Kugbo and an AYM Shafa station in Karu, yesterday, consumers lamented the rising cost of petrol, accusing the Federal Government of failing to take action.

A civil servant, Isa Kabir, said deregulation should not translate into unchecked profiteering, urging government intervention.

“The rate of increase is too high, and the government needs to act. Deregulation does not mean marketers cannot be regulated. What we are seeing now is profiteering and racketeering. Government cannot claim to be unaware.

“From N880 per litre at the beginning of the month to N1,370 in just three weeks is excessive. In other countries affected by the crisis in Iran, price changes are not this extreme.

“In a country without a social safety net, this will push more Nigerians into poverty. Many vehicles are already off the road, and some workers now prefer to work from home because transport costs have become unaffordable,” he added.

Also speaking, a taxi driver, Michael Ade, said N10,000 now buys just a little over seven litres worth of petrol.

“A month ago, that amount would have bought nearly 12 litres. It used to be enough for a trip from Jikwoyi to Wuse Market and back.

“Now, seven litres cannot cover the same distance. Passengers have to pay more, fares have risen to N2,000 from N1,200 just last week,” he said.

Ade appealed to government to act swiftly, saying “they should intervene before things get out of hand. The removal of subsidy should not mean Nigerians are left to suffer,” he added.

In Lagos, checks revealed that petrol is still selling at very high rate, ranging from N1,335 per litre to N1,340, despite the fact that crude price has fallen below $100 per barrel, following US President, Trump’s decision to extend by five days the ultimatum given Iran to open up the Strait of Hormuz, which expired yesterday.

Specifically, Emadeb Energy, NNPC Limited, MRS Oil Nigeria, Bovas Group, Rainoil Limited and Seaman’s are selling at N1,335, N1,325, N1,332, N1,325, N1,340 and N1,320 per litre, respectively.

Reacting in an interview with Vanguard, the Chief Executive Officer of Petroleumprice.ng, Olatide Jeremiah, said: “The drop in oil prices has created panic among operators, as depot traders are rushing to offload products amid the possibility of further price cuts by the Dangote refinery.

“The downstream market is likely to remain unstable in the coming weeks as long as the ongoing US–Iran conflict continues to drive volatility in the global oil market.”

Also speaking, President of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gillis-Harry, said: “As I said recently, crude oil prices will continue to fluctuate, leading to instability in petroleum product prices in Nigeria and other nations but Nigerians should avoid panic buying.”

APC govs to rollout palliatives

Apparently responding to the harsh economic environment the Middle East war has caused, the Progressive Governors Forum, PGF, comprising 31 governors of All Progressives Congress, APC, has pledged to roll out palliative measures to cushion effects of the war on Nigerians.

Rising from a meeting in Lagos on Tuesday night, the governors in a communique signed by chairman of PGF and government of Imo State, Hope Uzodimma, also stated that security remains the top priority of APC governors, even as they pledged to support President Bola Tinubu’s reform initiatives.

The communique read: “Members agreed that macroeconomic correction must steadily mature into lower hardship, wider opportunity, job creation, food affordability, enterprise growth, and improved quality of life.

“The forum further observed that the current conflict in the Gulf could heighten inflationary pressures through disruptions in global energy supply chains, with direct implications for household welfare and production costs.

“The PGF, therefore, resolved to deepen collaboration in food production, MSME support, youth enterprise, and targeted social interventions.

“Members further agreed that states would expand palliative measures and other support programmes for vulnerable citizens in order to cushion the likely effects of inflation while ensuring that economic adjustment is accompanied by social justice and practical hope.”

The communique read further: “National direction and the burden of leadership; the forum undertook a review of the national political, economic, and security environment. Members noted that moments of reform are often difficult because they ask a nation to move beyond old comforts into a more durable future.

“The PGF, therefore, reaffirmed that responsible leadership must be judged not only by its response to present pressures, but also by its courage to lay the foundations of long-term stability, productivity, and inclusion. the PGF reiterated that security remains the first condition of development. The Forum commended Mr. President’s resolve to confront insecurity through stronger national coordination, international collaboration, and institutional reform, and welcomed his commitment to deepen engagement with friendly countries in pursuit of joint solutions to security and other development-related matters.

The forum, therefore, called for sustained investment in intelligence, coordination, technology, border vigilance, and community-based early warning systems.

“Members also emphasized that enduring peace requires not only force of law, but also trust in institutions, opportunity for young people, and a social ethic that rejects violence as a means of grievance.”

On federal-state partnership for national renewal: the forum emphasized that Nigeria’s progress will be accelerated when the Federal and State Governments work in disciplined partnership, guided by constitutional responsibility and a shared development vision.

“In this regard, the governors reaffirmed their support for stronger policy coordination in infrastructure, agriculture, energy, transportation, healthcare, education, and social investment. They resolved to continue aligning state-level initiatives with national priorities while preserving the autonomy of states as laboratories of innovation and delivery.” (Vanguard)

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