The Director General of the Nigeria Employers’ Consultative Association (NECA), Mr Adewale-Smatt Oyerinde, has run to the rooftop to warn of the negative impact of rising crude oil prices on businesses and households in the country.
In a statement on Monday, he said the Middle East crisis was pushing up domestic energy costs, placing pressure on businesses and eroding the purchasing power of citizens, warning that without urgent intervention, the situation could escalate.
According to him, fuel prices have risen sharply in recent days, with petrol exceeding N1,300 per litre in some locations and diesel approaching N1,800 per litre, reflecting the impact of global oil price movements.
He stressed that energy costs sit at the heart of Nigeria’s economy, and energy is the engine of production and distribution, noting that businesses, particularly in manufacturing, agriculture, and logistics, are already under significant pressure. “What we are witnessing is Nigeria’s oil paradox. Rising crude oil prices are pushing up domestic energy costs, squeezing businesses and worsening the cost of living for citizens.
“Once fuel prices rise, the effects are immediate and widespread: transport costs increase, food prices rise, and the overall cost of doing business escalates.
“For many firms that rely on diesel for operations, current price levels are becoming increasingly difficult to sustain. Profit margins are shrinking, and businesses are being forced to either pass on costs or scale down operations,” Mr Oyerinde stated.
The NECA DG further noted that global oil prices have surged amid geopolitical tensions, with Brent crude rising above $110 per barrel, intensifying cost pressures across energy markets.
He clarified that while the Middle East conflict has contributed to the rise in oil prices, the impact is exposing deeper structural weaknesses, underinvestment, weak infrastructure, and inefficiencies in Nigeria’s energy value chain.
“This situation is not only driven by external factors, but it is also reflecting ongoing constraints within the energy value chain, including supply inefficiencies and infrastructure limitations,” he disclosed.
“The government must act swiftly to ease supply constraints, stabilise prices, and provide targeted relief to critical sectors, he declared, emphasising that, “If this trend continues unchecked, we risk business closures, job losses, and a deeper cost-of-living crisis.”
On the long-term outlook, Mr Oyerinde emphasised the need for structural reforms. Nigeria’s resilience will not be determined by oil prices, but by how effectively we manage them. This is a moment to strengthen institutions, improve transparency, and invest in sustainable energy solutions.
He concluded with a caution that if properly managed, “this could strengthen our economy. If not, the gains from rising oil prices will be completely eroded by inflation and economic hardship.”