By Adewale Sanyaolu, Merit Ibe and Adanna Nnamani, Abuja
Mass lamentation reached a crescendo yesterday as Nigerians woke up to a rude shock to find the petrol pumps of the Nigerian National Petroleum Company Limited (NNPC Ltd) adjusted from N598 to N885/litre.
The increase of N287/litre, poised to drive up food and transportation costs across the nation and adding financial strain on households, came barely 24 hours after the national oil company admitted to owing offshore product suppliers a whopping $6 billion.
Meanwhile, other market players have escalated their prices even further, reaching as high as N1,000 per litre, while the price at the black market oscillates between N1,200-N1,500, depending on the jurisdiction.
From truckers, taxi drivers to commuters and the broader Nigerians, the latest increase remains a death knell.
Many Nigerians who spoke to Daily Sun wondered how they will get by as food prices, transportation costs and other services will be sky-high.
Reacting to the development, the President, Nigeria Labour Congress, Joe Ajaero, described it as grossly insensitive and a severe breach of the agreement reached just weeks ago.
He said the NLC accepted a national minimum wage of N70,000 with the understanding that fuel prices would remain stable, a decision made to spare Nigerians from further economic hardship.
Ajaero said President Tinubu, during wage negotiations, presented two stark options: a minimum wage of N250,000, which would have been accompanied by a staggering increase in fuel prices to between N1,500 and N2,000 per liter, or a wage of N70,000 with the assurance that PMS prices would not rise.
He said the NLC chose the latter, prioritising the well-being of the people.
The NLC President added that the recent hike, coming before the new wage has even been implemented, has left the union and the nation reeling.
Ajaero, while expressing further frustration over the issue, noted that when the workers’ body previously cautioned the government about its flawed approach to the fuel subsidy issue, the warnings were dismissed as lacking economic insight.
He explained that the latest development is consistent with the government’s pattern of reneging on promises, pointing to a similar situation with the 250 per cent electricity tariff hike, where assurances of relief from the National Assembly were never fulfilled.
The NLC also criticised the government’s aggressive market policies, which have exacerbated the hardships faced by Nigerians, triggering widespread protests under the banners of End-Hunger and End Bad Governance.
The NLC stated that instead of addressing the legitimate grievances, the government responded with a crackdown, arresting and detaining both protesters and uninvolved citizens and levelling charges such as criminal conspiracy, treason, and terrorism financing.
The union further accused the government of overstepping its bounds by allowing security agencies to usurp the roles of the Ministry of Labour and Employment in resolving trade disputes and other matters. The NLC described this overreach as part of a broader strategy to intimidate and silence dissent.
The Congress called for reversal of the 250 per cent electricity tariff hike; restoration of the Ministry of Labour and Employment’s role in trade dispute resolutions and implementation of policies that combat hunger and insecurity.
Additionally, it asked for an end to the government’s culture of fear, repression, and deceit.
The NLC said it will convene its appropriate bodies in the coming days to deliberate on further actions and will communicate its decisions to the public.
“When the State and the security forces picked on us in a hybrid war, we had our suspicions. We knew they were up to something sinister and needed to distract/divert our attention or possibly frighten or weaken us before they came out with it so that we would not have a robust response.
“Now that the chickens have come to roost, we were right in our suspicions. However, we want to let Nigerians know that the clandestine/surreptitious increase in the pump price of pms is the first among the equally sinister policies the government has up its sleeve.
“On our part, we stand resolute with the people and will neither be distracted nor intimidated by the government or its security agencies,” NLC declared.
Amidst the surge in petrol pump price, industry watchers have said that the recent rollout of Dangote’s Premium Motor Spirit (PMS) offers a glimmer of hope for consumers, potentially easing the burden and stabilising the market.
Speaking on the fuel hike, Senior Partner, SPM Professionals, Mr. Paul Alaje, said Nigerians must brace up for hard times as the cost of living will skyrocket
He said the hike in petrol price will have a ripple and negative effect on the economy, especially food inflation which he projected to rise above 40 per cent in the weeks ahead.
He worried that the recently increased N70,000 minimum wage would leave more Nigerian workers poorer as they would spend a larger chunk of it on fuelling their cars and generators.
For households and business owners, the SPM boss argued that the purchasing power on most family would take a turn for the worse in the weeks ahead due to increase in the cost of goods and services, especially transportation.
Alaje said the Federal Government through the NNPC Ltd has now transferred the burden of subsidy to Nigerians because it could no longer afford to bear the cost.
For businesses, the economist explained that the demand for products will reduce as Nigerians will only spend on essentials going forward.
This, he said, will have far reaching implications for real Gross Domestic Product (GDP) with commodity prices increasing which would trigger poverty and hunger.
Meanwhile, Aliko Dangote, President of the Dangote Group, on Tuesday, unveiled the first batch of Premium Motor Spirit (PMS) produced by his ultramodern refinery in Lagos. The unveiling took place at the refinery’s facility in the Ibeju-Lekki area, where the 650,000-barrel-per-day refinery completed a successful test run of the product, setting the stage for a transformative shift in the nation’s fuel production and supply dynamics.
The Dangote Refinery, one of the largest in the world, represents a monumental achievement in Nigeria’s quest for self-sufficiency in fuel production. At the unveiling ceremony, Dangote expressed profound gratitude to the Nigerian government for creating an enabling environment that allowed the project to reach this significant milestone. He emphasized that the refinery’s operations would not only meet the domestic fuel demands of Nigeria but also supply the broader sub-Saharan Africa region, making Nigeria a pivotal player in the continent’s energy market.
Dangote highlighted the refinery’s sophisticated technological capabilities, which include advanced systems for monitoring fuel consumption and distribution across the nation. This feature is poised to bring a new level of transparency and efficiency to Nigeria’s fuel supply chain, ensuring that every litre of fuel is accurately tracked from production to consumption. “With our refinery now operational, we can effectively monitor Nigeria’s true fuel consumption,” Dangote stated. “This capability allows us to track every truck and ship transporting fuel, which will drastically reduce wastage, smuggling, and other inefficiencies that have plagued the industry for years.”
Nigeria’s recent decision to increase fuel prices has triggered a wave of concern among manufacturers and industry leaders, with many decrying the move as both insensitive and detrimental to the economy.
Frank Onyebu, a prominent manufacturer and member of the Manufacturers Association of Nigeria (MAN), voiced strong opposition to the policy. “This price increase is insensitive to say the least,” Onyebu stated. “The economy is already stretched to its limits and cannot bear additional pressure. The government’s decision at this time is baffling.”
Onyebu warned that the policy would exacerbate economic hardships, particularly for the nation’s poor. “The purchasing power of most Nigerians is already diminished. Many struggle to afford even basic necessities, with food prices soaring out of reach for many,” he explained. Onyebu emphasized that any rise in fuel prices inevitably triggers a surge in the cost of transportation and other essential goods, worsening the plight of the average Nigerian.
Gertrude Akhimien, the Lagos branch Chairman of the National Association of Small Scale Industrialists (NASSI) and a MAN member, painted a grim picture of the current economic climate. “The country is in crisis. Fuel shortages are rampant, and economic management appears ineffective,” Akhimien said. She expressed deep concerns over the challenges facing manufacturers and micro, small, and medium enterprises (MSMEs), many of which are struggling to remain operational due to soaring production costs. “Many MSMEs have shut down or are on the brink due to the high cost of production. Local production is increasingly difficult, and the increase in fuel prices will only make things worse,” she added. Akhimien called for urgent government intervention to stabilize the manufacturing sector and address the escalating crisis.
Omokhai Ehimigbai, a member of the MAN Export Group (MANEG), echoed similar concerns. He highlighted that the price hike would further escalate production costs and reduce the purchasing power of the public. “Nigerian manufacturers rely heavily on petroleum products for power generation due to insufficient electricity supply,” Ehimigbai noted. “The cost of moving goods and services, which depends on petrol, will rise, further compounding the challenges faced by manufacturers.”
Industry leaders are urging the government to take swift action to mitigate the negative impacts of the fuel price increase and to support the manufacturing sector, which is critical to the country’s economic stability and growth.
