It caused rising unemployment, rising food prices and an economy in decline.
The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) has raised concerns over the recent increase of the ex-depot price of Premium Motor Spirit (also known as petrol).
The Director-General, Ambassador Ayo Olukanni, who raised this concern in a press statement, said the recent increase of the ex-depot price of PMS by the Petroleum Products Marketing Company, from N147.67 per litre to N155.17 per litre is worrisome.
The DG said, “When viewed in isolation, this could be considered as a move to ensure that prices of petroleum products reflect market realities. However, considering the rising unemployment (over 21million people unemployed as at Q2, 2020), rising food prices, (16.7 percent on a year-on-year basis, as at September), and an economy in decline (GDP growth rate of negative 6.1 percent as at Q2, 2020) further exacerbated by the closure of land borders and an increase in electricity tariffs; it is clear that an increase in pump prices of petrol (a major source of energy needs of the population) will increase the cost of production for the real sector which will be passed to the consumers who have seen their purchasing power of eroded.
“To stave off the looming economic recession, and accelerate economic recovery, we counsel the Federal Government to accelerate the effective and prompt implementation of all stimulus packages and intervention funds designed to support the production processes of the real sector, while considering the implementation of measures to reduce energy costs.”