The Lagos Chamber of Commerce and Industry (LCCI) has called on the Federal Government to develop a credible plan to progressively, sustainably, and transparently bring down petrol prices in Nigeria. This call was made by the LCCI's Director General, Dr. Chinyere Almona, in a statement reacting to the government's recent plans to moderate price volatility. The chamber commended the government's proposed petrol price-stabilization mechanism, noting that it had become imperative due to rising energy and transportation costs.
The LCCI noted that the government's proposal to establish a ceiling of ₦1,350 per litre on the ex-gantry or landing cost of petrol was a step in the right direction, as it acknowledged the significant consequences of excessive volatility in energy prices for the wider economy. However, the chamber emphasized that the next phase should be for the government to have a concrete plan to bring down the price of petrol. The LCCI stated that while price stability was desirable, achieving it at an excessively high price would not restore business competitiveness.
The chamber expressed concerns that the proposed arrangement, in its present form, may cushion businesses against sudden increases without necessarily bringing down the already elevated cost of energy. Nigerian businesses are contending with high electricity tariffs, substantial expenditure on alternative power generation, rising logistics costs, expensive financing, and other structural constraints. Petrol price increases compound these pressures, affecting distribution, transportation, production, and the cost of delivering goods and services.
The LCCI emphasized that Nigerian businesses need sustained price reductions to restore competitiveness and protect jobs. The chamber stated that it wanted to see the ultimate impact of these policy interventions bring about Nigerian businesses spending less on petrol, transportation, and distribution costs moderating, and consumers experiencing meaningful relief. The LCCI's call for a six-month petrol price reduction programme aims to reduce pump prices and the costs of doing business in the country.
The chamber's statement comes as businesses in Nigeria have demonstrated considerable resilience in the face of high operating costs over the past few years. However, the LCCI noted that resilience alone would not sustain competitiveness indefinitely. The chamber urged the government to take concrete steps to address the issue of high petrol prices, which have been a major challenge for businesses and households in Nigeria.
The LCCI's Director General, Dr. Chinyere Almona, stated that the chamber was concerned about the impact of high petrol prices on the economy. The chamber's proposal for a six-month petrol price reduction programme is aimed at reducing the costs of doing business and providing relief to consumers. The programme would also help to moderate price volatility and create a more stable business environment.
The Federal Government's proposed petrol price-stabilization mechanism is a step in the right direction, but the LCCI's call for a credible plan to bring down petrol prices is a reminder that more needs to be done to address the issue. The government will need to work with stakeholders to develop a comprehensive plan to reduce petrol prices and the costs of doing business in Nigeria.
Key points
- The LCCI has called on the FG to develop a six-month plan to bring down petrol price and reduce the costs of doing business in Nigeria.
