The Nigerian Association of Chambers of Commerce Industry Mines and Agriculture has expressed concern over rising prices of petroleum products; particularly diesel and aviation fuel.
In a statement made available to TBI Africa signed by the National President of NACCIMA, Ide John Udeagbala, the hike is very possibly an effect of the ongoing conflict in Europe and made worse by a lack of domestic production to meet demand despite the existence of refineries.
According to udeagbala, the implications for the Nigerian economy are far-reaching as the use of these products is entrenched in the production and transportation processes of both the public and private sectors.
“Nevertheless, we do not expect that the shutdown of flights over the scarcity of aviation fuel and the issues of the national grid to bring the economy to a standstill in the short or medium term, rather, with rising prices we expect rising inflation, a further erosion of the purchasing power of the population, and redistribution of wealth that plunges more of the population below the poverty line. This is the likely result of the private sector seeking to adapt and adjust to the new realities.
“We use this opportunity to stress once again our call for incisive policy implementation within the Energy sector to limit our economy’s exposure to global shocks and serve as a springboard for sustained economic growth,” Udeagbala stressed.
