Peoples Democratic Party (PDP), pan-Yoruba socio-cultural and political organisation, Afenifere, Nigeria Labour Congress (NLC), Trade Union Congress (TUC), and some civil society organisations (CSOs), yesterday, expressed outrage at the recent hike in petrol prices, lamenting that the federal government is inflicting further hardship on Nigerians.
PDP rejected what it described as the punishing increase in the pump price of premium motor spirit (PMS) to over N1,000 per litre in various parts of the country. The leading opposition party stressed that it was a brutal assault on the sensibility and well-being of Nigerians “by the insensitive and arrogant All Progressives Congress (APC) administration”.
Afenifere called on the federal government to immediately order the Nigerian National Petroleum Company Limited (NNPCL) to reverse the price increase.
NLC maintained, in a statement yesterday, that the federal government had undertaken, during the N70,000 minimum wage deal with organised labour, not to approve further hike in the price of petrol. It called the recent price hike a betrayal by the government.
But the presidency denied making any undertaking not to increase fuel prices.
Similarly, TUC asked the federal government to rescind the decision on the recent increases in the pump price of petrol and electricity tariff.
ActionAid Nigeria and the Network Against Corruption and Trafficking (NACAT) condemned the latest hike in pump price of PMS, and demanded immediate action from the government on economic reform.
Lagos Chamber of Commerce and Industry (LCCI); Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA); the organised private sector (OPS); and Nigerian Gas Association (NGA) all frowned on the increment.
PDP, in a statement by its National Publicity Secretary, Debo Ologunagba, said, “The thoughtless increase in fuel price, especially at this time, is a huge recipe for crisis, as Nigerians cannot bear its worsening effect on the suffocating economic hardship, which they currently face under the President Bola Ahmed Tinubu-led APC administration.
“The secretive and corrupt administration of the petroleum sector and persistent increase in fuel price under the Tinubu-administration, without due regard to the wellbeing of the people, is akin to pushing Nigerians to the wall and daring them to do their worse.”
Ologunagba argued that the APC administration had consistently shown itself “to be anti-people, unconcerned and deaf to the agonies of millions of Nigerians who can no longer afford their daily meals, medications and basic support for families due to the catastrophic high cost of living occasioned by the insensitive and reckless policies of the Tinubu administration”.
According to the PDP spokesman, “Today, under the Tinubu-led APC administration, over 150 million Nigerians have sunk below poverty line, businesses are collapsing daily, as the naira now exchanges for over N1,600 to a dollar, with over 34 per cent inflation rate and over 40 per cent unemployment rate, which are expected to rise further with the latest draconian increase in the price of fuel.
“There is practically no hope in sight under the current APC government policies, as major multi-national companies continue to exit our country in droves in the face of ill-conceived and ill-implemented macro-economic policies.
“The admission by the APC-led federal government that it has handed the fate of Nigerians to oil racketeers in the name of a free market economy further validates the position of the PDP that the Tinubu-led administration has abdicated the primary purpose of government; which is to provide for the welfare and security of the citizens.”
Ologunagba addd, “President Tinubu is the Minister of Petroleum Resources and cannot exonerate his government and officials from the secretive and fraudulent management of the petroleum sector, which is fast pushing our nation’s economy to the precipice.”
The PDP spokesman stated, “it is inexplicable that the APC administration continues to increase fuel price despite the scandalous revelation in the public domain that it is secretly paying a whopping N5.4 trillion as fuel subsidy for 2024.
“The APC government has now become an enabler of a cabal of corrupt APC rent-seekers who derive pleasure in inflicting pains on Nigerians while hugely benefiting from the proceeds of incessant increase in fuel price to satisfy and fund their luxury appetite and consumption.
“With the hopeless state of affairs of our nation today, our party wonders what President Tinubu, during his numerous trips abroad, says to his foreign counterparts in nations where leaders prioritise the welfare of their people!
“Nigerians will recall that the PDP had on several occasions offered constructive advice and suggestions on the management of the economy, which the APC government in its arrogance in failure ignored.
“Our party restates that with a deft, transparent and innovative management of resources, economic potentials, comparative advantage and national refining capacity, petrol should not sell more than N250 per litre in Nigeria.”
PDP called on Tinubu to save the country from further socio-economic dislocation by immediately reversing the latest increase in fuel price and revisit all life-discounting and suffocating policies of the APC government.
NLC, in a statement signed by its Head of Information and Public Affairs, Benson Upah, said, “Our attention has been drawn to the denial credited to the Senior Special Assistant to Mr. President on the Print Media, Mr. Abdulaziz Abdulaziz.
“In the said statement, Abdulaziz was quoted as saying: ‘I sat through the two meetings President Bola Ahmed Tinubu had with labour leaders on minimum wage. At neither of the meetings was an offer made in exchange for the fuel price hike. Ajaero is once again playing his dirty politics with the emotions of Nigerians.”‘
NLC said it found the denial of Abdulaziz amusing, describing him as someone “suffering from selective amnesia or attention span deficit”.
NLC stated, “Whatever the matter is with Abdulaziz, we stand by our statement. And if Abdulaziz was at those meetings, as he claimed, he should be courageous enough to let the world know whether the president gave the labour leaders one hour to meet and resolve to either accept and allow an increase or accept N62,000.”
It said labour leaders decided to meet outside the villa and to report in a week, but when they came back, they were blunt and rejected the offer.
Equally, TUC asked the federal government to rescind the decision on the recent increases in the pump price of petrol and electricity tariff.
It asked the federal government to reverse the decision and take steps to rebuild confidence among the citizens.
In a statement signed by its President, Festus Osifo, the union stressed that the sudden price hike represented “a blatant disregard for the welfare of the Nigerian people, particularly the working class who bear the brunt of such decisions.
“The sudden hike in fuel and electricity costs will only exacerbate these challenges, leading to further hardship and potential social unrest.
“We urge the government to immediately rescind these decisions, promote policies that will strengthen the naira, and take decisive steps to alleviate the suffering of Nigerians.”
TUC stated that it received the news of the petrol price hike with great contestation and grave concern. It added that the burden of the price increase was huge and would affect all facets of the citizen’s social-economic life.
“In addition, we are deeply troubled by the further hike in electricity tariffs to 250 per cent, a service that is essential for the survival of the poorest in our society,” it stated.
The union said the timing and magnitude of the increases, in the absence of any meaningful social security measures, demonstrated a lack of empathy and understanding of the challenges faced by ordinary Nigerians.
Afenifere Calls for Immediate Reversal
Afenifere called on the federal government to immediately order NNPCL to reverse the increase in petrol pump price.
Afenifere, in a statement signed by its spokesman, Jare Ajayi, asserted that Nigerians were currently going through a lot of challenges as a result of the biting socio-economic crunch and the attendant hardships.
It said, ironically, the announcement of its debt to foreign suppliers came not long after the national oil company announced that it made N3.3 trillion net profit in its 2023 Audited Financial Statement.
Afenifere said with the latest increase in the price of fuel, the cost of fuel in Nigeria had risen by 460 per cent in 15 months.
Afenifere wondered why a firm that declared profit running into trillions of naira could, almost in the same breath, claim that it was indebted to the tune of nearly $7 billion.
“Why not pay off the debt from the available fund before declaring it as profit?” it queried.
Afenifere said, “It is, therefore, a wrong time to come up with any policy that will increase the undesirable challenges Nigerians are going through presently.
“Failure by the NNPCL to reverse the latest increment in fuel price will rub off negatively on some policies of Tinubu administration to ease things for the citizens. Policies, such as the Students Loan Scheme and Consumer Credit Scheme that are just taking off.”
The statement said the oil company seemed to be making Nigerians pay for its inefficiency.
According to Afenifere, “It is common knowledge that the cost and availability of energy, such as petrol, gas, electricity, diesel and kerosene are major factors, not only in production and services ,but also on the quality of well-being that Nigerians can enjoy.
“Hikes in prices of these energy sources have astronomically increased the costs of services and commodities, reduced the disposal incomes of average Nigerians, and heightened their health risk.
“The combination of all these are making a daily living an onerous task for the majority of the citizens. Because millions of the Nigerians had been described as being ‘multi-dimensionally poor’, the recent hike in costs of fuel and electricity are uploading the number of people in that category phenomenally.”
ActionAid Nigeria condemned the hike in pump price of petroleum products, demanding immediate action from the government on economic reform
The non-governmental organisation said increasing the minimum wage from N30,000 to N70,000 would never bring succour from economic hardship to Nigerians as it only amounted to treating eczema instead of leprosy.
ActionAid, in a statement yesterday, signed by its Country Director, Andrew Mamedu, said, “The federal government must prioritise the welfare of Nigerian citizens over revenue generation and provide a comprehensive plan to protect vulnerable citizens and support small businesses within 48 hours. This plan must include measures to mitigate the impact of high fuel prices on the poor and vulnerable.”
Mamedu lamented, “Since President Bola Ahmed Tinubu assumed office in May 2023, the removal of fuel subsidies has led to a harsh economic reality for many Nigerians. Despite efforts to recover, the federal government’s decision to allow fuel prices to surge again has worsened the situation, leading to a ripple effect on the economy.
“In May 2023, just before President Tinubu’s inauguration, petrol prices were already high at N185 per litre, causing widespread discontent among Nigerians due to the accompanying high cost of goods. However, on his first day in office, fuel prices skyrocketed to N500 per litre, leading to a sharp surge in the prices of essential commodities.
“Since then, fuel prices have continued to rise steadily. By August 2023, it reached N626.70 and continued to fluctuate, surmounting N668.3 in January 2024 and N770.54 in July 2024. As of September 2024, it has increased again to a staggering N897 per litre, which greatly worsens the situation for many Nigerians.”
Mamedu stated further, “ActionAid Nigeria strongly condemns this development, which will push millions of Nigerians deeper into poverty. We demand transparency in fuel pricing, including a clear breakdown of costs and revenues associated with fuel imports, refining, and distribution.
“The federal government must provide a detailed explanation of the fuel pricing mechanism to ensure accountability and trust.
“Concurrently, the federal government must implement a comprehensive economic reform plan as soon as possible, including measures to diversify the economy, increase foreign exchange earnings, and stabilise the naira.”
NACAT also condemned what it termed the insensitivity of government to the suffering of the masses, describing its policies as a thorn in the flesh of Nigerians.
It said the decision to hike fuel price, with the economy already in a parlous state, was “a betrayal of trust”.
A statement by the civil society organisation said the hike in pump price of petrol was a breach of the agreement reached with labour.
It stated, “It is with rude shock that we received the recent surreptitious, abrupt and unconscionable hike in the price of petrol.
“As an organisation that promotes good governance, transparency, rule of law, and sustenance of the security and wellbeing of Nigerians in the project of nation building, we see this latest increase, coming on the heels of the relentless economic torment inflicted on Nigerians by the current administration, as nothing short of a betrayal of the public trust.
“It is an egregious affront to the collective well-being of the Nigerian people, who have already been subjected to untold hardship by a series of failed policies.
“The government’s cavalier attitude towards the suffering of the masses is deeply troubling and unacceptable.
“We are appalled by revelations from the Nigeria Labour Congress (NLC) that this hike in fuel prices directly contradicts the understanding reached with the government regarding the N70,000 minimum wage.”
The statement signed by Director, Operations, Stanley Ugagbe, said NLC made it clear that the decision to accept the N70,000 minimum wage was predicated on the promise that PMS prices would remain stable.
NACAT said, “As a leading anti-corruption and trafficking body, we state clearly that corruption thrives where poverty prevails. We know very well that with the increment of fuel, everything in the country will immediately skyrocket in prices and this will give room to civil servants as well as public office holders to steal more to cover up the cost of things.
“This government has seemingly forgotten that it was a culmination of such bad policies and the resulting hardship that fuelled the recent nationwide #EndBadGovernance protests.
“Under the APC government, Nigerians have been subjected to an endless cycle of troubles and afflictions. The biblical analogy is not lost on us–this is akin to King Rehoboam’s infamous declaration that he would scourge the Israelites with scorpions, a decision that ultimately led to the division of the kingdom. In a similar vein, this government’s continued oppressive policies threaten to divide and devastate the very fabric of our nation.”
LCCI: Removal of Petrol Subsidy Presents Significant Challenges to Nigerians and Businesses
LCCI stated that the removal of petrol subsidy in a manner that caused a sharp hike in the pump price would present significant challenges to Nigerians and businesses.
Director General of LCCI, Dr. Chinyere Almona, in a statement, however, maintained that the current petrol subsidy was unsustainable and the burden of the shortfall had accumulated to a debt of N10 trillion.
Almona stressed, “Completely removing it and subjecting Nigerians to a significant fuel price hike presents significant challenges.
“A steep price hike would likely trigger widespread price increases, potentially reversing the recent easing in inflation seen in July and leading to another surge in inflation rates. Balancing the need for fiscal responsibility with the economic impact on citizens is a complex task for the government.”
LCCI added that the impact of the latest hike in petrol price on businesses “will be severe, with fuel prices affecting supply and logistics, power generation, transportation, and factory operations.
“The cost of doing business will skyrocket, prices of goods will rise, and some firms may shut down due to low demand in the face of weakening consumer purchasing power. Of course, this will be followed by job losses.”
The chamber stated that even though the “situation is critical, when considered against the background of NNPC, which owes suppliers about $6 billion, the operation of the Dangote Refinery, which now produces fuel and diesel for sale, offers a glimmer of hope.
“This game-changing intervention could restore some stability to the oil and gas sector, which has been grappling with significant distortions this year.”
It advocated, “Supporting the development of additional local refineries to process our crude for local consumption and potential export across Africa is the way forward.
“This long-term strategy is crucial for the stability and growth of our economy.
“As an immediate intervention, it would be beneficial for the Port Harcourt Refinery to commence operations alongside production from the Dangote Refinery.
“Given the current challenges with importing refined fuel, relying on local production may be the most viable option at this time.
“We recommend sustaining local supplies, with the expectation that demand will eventually align with supply, leading to equilibrium pricing across various sources.”
NACCIMA Expresses Concern
NACCIMA, in a statement by its National President, Dele Oye, called on the federal government to engage in constructive dialogue with relevant stakeholders, including the organised private sector and labour unions, to address the concerns raised about the price increase and its potential effect on the economy.
The statement said, “NACCIMA expresses concerns over the recent increase in the pump price of petrol to over N800 per litre at NNPC filling stations across the country.
“While we understand the complex factors that can influence fuel prices, such as global oil market dynamics and exchange rate fluctuations, we are troubled by the lack of prior notice and clear explanations provided by the government and the NNPC regarding this development.
“The timing of this price hike is particularly concerning, as it has the potential to further exacerbate the impact on businesses and consumers, especially the vulnerable segments of the population and those on fixed incomes, who are still adjusting to the recent increase in the national minimum wage.”
Oye stated, “We are particularly interested in understanding the reported conditions that may have been agreed upon during the minimum wage negotiations, and how the current development aligns with those understandings. Maintaining trust and credibility in the government’s economic policies is crucial for fostering a conducive business environment and promoting inclusive growth.
“Furthermore, we urge the authorities to provide clarity on the NNPC’s financial reporting, which has seen conflicting statements about the company’s profitability and financial obligations. Transparency and accountability within the state-owned oil company are essential for building public confidence.”
He added, “NACCIMA remains committed to working collaboratively with the government and other stakeholders to find sustainable solutions that balance the needs of businesses, consumers, and the broader Nigerian economy. We believe that open dialogue and a shared commitment to the nation’s prosperity are key to navigating these complex challenges.”
Chairman, Energy Transition Group, Nigerian Gas Association, and CEO of Cabtree, Olabode Sowunmi, yesterday, provided a detailed analysis of the situation.
Speaking on “The Morning Show” on ARISE NEWS Channel, the broadcast arm of THISDAY, Sowunmi emphasised that crude oil pricing, as a globally traded commodity, had always been determined by a range of economic fundamentals.
“Crude oil is a commodity with uniform pricing globally, which means its price will generally fall within a certain range around the world,” Sowunmi explained.
He stated that costs associated with refining were similarly standardised, leading to relatively consistent petrol prices globally.
However, Sowunmi highlighted the effect of Nigeria’s fluctuating currency on petrol prices, pointing out that “the day the naira falls against the dollar, the price of petrol changes accordingly”.
He criticised the government’s historical lack of political will to adjust petrol prices in line with these fluctuations, which often led to the implementation of subsidies.
Sowunmi also underscored the role of local refineries, particularly the Dangote Refinery, in potentially stabilising prices.
He said, “The advantage of local refineries, like Dangote’s, lies in their ability to purchase crude oil in naira, avoiding the pressures of procuring dollars.”
That, in turn, obligated the refinery to price its products in naira, which could offer some insulation from the volatility of international currency markets, Sowunmi added.
Despite these potential benefits, Sowunmi expressed uncertainty about whether the Dangote refinery’s production would fully meet Nigeria’s demand for refined products.
He pointed out that until Dangote’s operations were fully monitored, particularly the tracking of every truck leaving the refinery, the actual daily consumption of petroleum products in Nigeria would remain unclear.
Sowunmi also addressed the economic realities facing the Dangote refinery, stating that it is a business that must remain profitable.
“Dangote is a business person with shareholders; he’s not going to run the refinery at a loss. They will price their products competitively and in a way that ensures profitability,” he said.
Furthermore, Sowunmi highlighted the issue of potential monopoly, citing the Federal Consumer Protection Act, which defines any business with over 40 per cent market share as a monopoly. He suggested that while monopolies were typically frowned upon in free markets due to historical reasons, the situation with Dangote could require careful regulation to prevent market distortions.
