Families and operators of businesses in the country have continued to decry the recent hike in petrol prices as they grapple with the escalating cost of living amid widespread discontent in the country. The 50 percent increase in petrol price has rippled through the economy, driving up prices of essential goods and services, and exacerbating financial hardships for many.
The price hike, which came into effect last week, has seen petrol prices soar to record highs of between N850/litre and N1,400 per litre depending on the area, adding to the already mounting pressure on household budgets.
Owing to the hardship being experienced by the citizens, the Catholic Bishop of Sokoto Dioceses, Matthew Kukah, called on President Bola Tinubu and the leaders of the All Progressives Congress (APC) to take measures to ease the sufferings of Nigerians and also reverse the petrol price hike.
Arewa Youth Consultative Forum (AYCF) also condemned the recent increase in the pump price of petrol and warned the federal government not to take Nigerians for granted.
Speaking with our correspondent, a frozen food trader and mother of two, Mrs. Arinola Olusoji, said, “I’m finding it difficult to balance my budget. The increase in petrol prices has added to my transportation costs, and I’m struggling to afford necessities like food and rent.
“We expected so much from this government, but what we are seeing now is the least we expected from Tinubu.
“You can imagine when we are having a queue from the northwest, Gbagada, to Anthony. I left my vehicle in Ikorodu to come here. You cannot imagine how much I paid to get to this place.”
The situation is even more dire for low-income households, who are already struggling to survive on meager earnings.
“I don’t know how I’ll manage to feed my family,” said Johnson Odumakin, a Lagos commercial bus driver. The price hike has taken away what little savings I had, and I’m worried about our future.
“There is no fuel to work. There is even no black market. We bought last fuel at the black market price of N7,500 for five litres.
“Passengers have been complaining that the price of transport is too high, but what choice do we have when we are buying fuel for N1,300 per litre?“From Shonoyi to this place is N400. From Yetunde Brown to Bariga is N500, which is not supposed to be so.
“People are complaining that it is too bad. I’ve never seen this kind of scarcity before since my existence.
”In his remarks, a petty trader, Abdullah Isah, said, “I used to buy fuel of N7,000 per day. Now, I don’t even have N7,000, and it finishes on time. One litre of fuel is N868. I don’t know what to do. I used to enter from my house to this place N500 before, now it’s N1,200.
“You can imagine. It’s very terrible. Before you even see the bus, it’s very scarce. I have six children, how do I cater for them when I am spending that high on transportation and fuel? How much do you make from this business?”
Also speaking, Managing Director/Chief Executive Officer of Treasury Capital and Trust Limited, Tom Achoda, pointed out that the implications of the latest hike in the pump price of petrol and high inflationary pressure for businesses would be very significant and negative.
Achoda, who is also an economist, said that their impacts may further erode the value of Naira and reduce the purchasing power of individual consumers. He projected that businesses were going to shut down and those that would be running would be running at negatives, which would lead to an increase in non-performing loans (NPLs).
According to him, “businesses will not be able to meet up operational costs and at the same time service their existing loans.
“The multiplier effect will be that as businesses are shutting down it will be affecting bank balance sheet because it will increase NPLs.
“All the cash flow analysis that were done by bank before approving existing loans to their customers has been overturned by current realities, especially hike in energy costs.
“Those cash flow projections were based on the realities at the time they took those loans. At that time, the price of fuel was below N500 but is now above N1,000. I flew into Uyo on Wednesday and people were buying fuel in my presence for N1,3000.
“The cost of living has increased and there is no commensurable salary for workers. Even the new minimum wage has been eroded.
”Another impact on businesses, according to Achoda, was that many corporate organisations could lose the services of their skilled workers who could likely emigrate to foreign countries in search of greener pastures.
Speaking in the same vein, the Chief Executive of De-SME Facilitators Limited, Tony Chinwe, said the implications of petrol price hike for businesses would be multifaceted, very harsh and asphyxiating.
Chinwe, who was the former Group Head of SME Banking, Fidelity Bank Plc, said: “Unlike many countries where electricity is supplied from the public grid, over 90 per cent of MSMES use petrol-powered generators as a source of electricity for their machines and equipment.”Commenting on the development, Director General, Institute of Directors Nigeria (IOD Nigeria), Dele Alimi, said the high cost of commodities would erode households’ disposable income, adding that businesses should brace up for a corresponding decrease in profit margin as a result of high running cost. Worried that Nigeria was in dire straits, he suggested as a way out for rulers to strike a balance that would put all on the winning side.
“Unfortunately, we cannot blame oil manufacturers. Like any other business, they also sell at prevailing processing cost. They need to operate profitably to remain in business.
“Unfortunately, the government failed to plan properly for subsidy removal which is why we are here. It is disappointing that one year after fuel subsidy removal, what we see is 20 CNG buses distributed to states when ordinarily we should have mass transit business flood major cities”, he asserted.
On his part, President, the Chartered Institute of Taxation of Nigeria (CITN), Samuel Agbeluyi decried another fuel hike at a time when Nigerians were grappling with inflation, unemployment, and a declining standard of living.
He submitted the decision would exacerbate inflationary pressures.
“Already, transportation costs have surged by approximately 50%. Businesses are struggling to stay afloat, thus the economic strain on citizens would worsen. This situation disproportionately affects low- and middle-income earners, who are already struggling to make ends meet. This, coupled with hike in electricity tariffs compounds this problem, particularly the operational cost of SMEs, which are the backbone of the Nigerian economy”, he expressed.Also speaking, the Registrar/CEO of the Institute of Chartered Secretaries and Administrators of Nigeria (ICSAN), Babatunde Okuneye, said recent hike in fuel price may not be unconnected to the deregulation agenda of the downstream sector of the Nigerian petroleum industry, targeting general good. He said, ”We should expect a reduction in disposable household income which will also impact access to food, healthcare, education, and other household priorities. This will equally exacerbate the plight of the already agonising populace, majority of whom are reeling under the scourge of poverty.”
Kukah to Tinubu, APC: Nigerians Are Hungry, Reduce Fuel Price
Bishop of Sokoto Dioceses, Bishop Matthew Kukah called on Tinubu and the leaders of the APC to reduce the price of petrol to ease the sufferings of Nigerians.Kukah, who spoke at the formal unveiling of the APC Progressive Institute yesterday in Abuja stressed that there was serious hunger in the land.The clergy also urged political leaders to urgently find a way of reducing hunger and suffering of the masses in the land.His words: “I have always said that I am not a politician but I am political. I am not a member of the APC. If Labour party invites me, I will go, if it is the PDP that invites me, I will also go. One thing I will appeal to politicians is to write your biography so that the younger generation will appreciate the mistakes you have made.
“The Institute will help the political leaders to change the rules of engagement. Once they are elected, spiritualists, ritualists will dictate their activities. I want to urge Nigerian politicians to move from marabout to scientific approach to administering the country.
“As I commend the APC for this feat and I am happy that the political leaders are here and I want to say that Nigerians are hungry. You must find a way of reducing the prices of fuel to reduce the suffering in the country.”
AYCF Warns Against Taking Nigerians For Granted
The Arewa Youth Consultative Forum (AYCF) condemned the recent increase in pump price of petrol and warned the federal government not to take Nigerians for granted.
In a statement yesterday, in Kaduna, President General of the forum, Yerima Shettima, said, it was becoming clearer that the present government seemed to have lost touch with the reality of things in the country. He said the current economic situation is pushing Nigerians to the wall.
Shettima, noted that it was unfortunate that the government which had earlier appealed to Nigerians not to embark on protest with the promise to make life better, only to add to their pains by suddenly increasing petrol price.The statement called on the federal government to have a rethink on its policies and the challenges facing the country.
“For me, the federal government should have a rethink on the numerous challenges.
“President Bola Tinubu must allow Nigerians to breath, because with the situation of things now, angry and hungry Nigerians are further being pushed to the wall and the reaction of an hungry and angry person may be unimaginable”, Shettima said. He urged the government to leave up to its responsibilities and let Nigerians feel the positive impact of the renewed agenda by making life better for Nigerians.
The statement added that, “The sudden increase in price of petrol has already created a multiplying effect on prices of not only food stuffs, but in several other areas such as transportation among others.”Shettima asked the federal government to urgently do the needful to avoid revolt from Nigerians by prioritising their welfare.
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