Rising Fuel Prices Trigger Fears of Job Losses, Business Shutdowns — NECA, NLC Raise Alarm

Concerns are mounting over the economic fallout of rising global oil prices, as NECA, NLC, LCCI, and ASBON warn of potential business closures and job losses across Nigeria.

The groups said increasing energy costs are placing immense strain on businesses and households, even as petrol prices remain high nationwide despite a drop in global crude prices.

In response, governors under the APC have promised to roll out palliative measures to cushion the impact of the Middle East crisis on Nigerians.

NECA highlighted what it described as Nigeria’s “oil paradox,” where rising crude prices are driving higher domestic costs instead of economic benefits.

Director-General Adewale-Smatt Oyerinde described the situation as alarming:

“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 noted that petrol prices have climbed above N1,300 per litre, with diesel approaching N1,800.

“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 said.

Oyerinde warned that industries dependent on fuel are struggling to survive:

“Profit margins are shrinking, and businesses are being forced to either pass on costs or scale down operations.”

He added that Nigeria’s energy sector challenges, including infrastructure gaps and inefficiencies, are worsening the situation.

“If this trend continues unchecked, we risk business closures, job losses, and a deeper cost-of-living crisis.”

NLC President Joe Ajaero also stressed that businesses and jobs are under threat, urging the government to channel increased oil revenues into relief measures.

“It is a statement of fact that businesses and jobs are at risk… citizens need relief,” he said.

LCCI warned of rising logistics costs and supply chain disruptions, while ASBON noted that small businesses are facing higher costs for imports, energy, and financing.

“If appropriate steps are not taken… this could trigger a ripple effect of job losses, and even business closures,” ASBON said.

Petrol prices have continued to rise sharply, hitting as high as N1,371 per litre in Abuja, while Lagos prices hover between N1,320 and N1,340.

Consumers have decried the situation. Isa Kabir said:

“The rate of increase is too high… this will push more Nigerians into poverty.”

Taxi driver Michael Ade added:

“Seven litres cannot cover the same distance anymore… fares have risen significantly.”

Experts say instability in the downstream sector is likely to continue as global oil market volatility persists amid geopolitical tensions.

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