Key economic stakeholders, including the Nigeria Employers’ Consultative Association (NECA), Nigeria Labour Congress (NLC), Lagos Chamber of Commerce and Industry (LCCI) and the Association of Small Business Owners of Nigeria (ASBON), have raised concerns that the ongoing Middle East crisis could lead to business closures and job losses in Nigeria due to rising fuel costs.
The warning comes amid a surge in global oil prices linked to tensions in the Middle East, which has continued to impact domestic fuel prices in Nigeria.
Despite fluctuations in crude oil prices globally, petrol prices in Nigeria have remained elevated across major cities such as Lagos and Abuja.
Energy costs play a central role in Nigeria’s economy, influencing transportation, manufacturing and household expenses. Increases in petrol prices often translate into higher operating costs for businesses and rising cost of living for consumers.
The development reflects the broader impact of global energy market disruptions on local economies, particularly in countries that rely on imported refined fuel.
The organisations expressed concern that soaring fuel prices are placing increasing pressure on businesses and households, warning that the trend could weaken economic stability if not addressed.
According to NECA, the rise in crude oil prices has created what it described as a “paradox”, where higher oil earnings are accompanied by increased production costs and living expenses in Nigeria.
Director-General of NECA, Adewale-Smatt Oyerinde, said the situation is already affecting business operations, noting that rising energy costs are reducing purchasing power and compressing profit margins.
He warned, “If this trend continues unchecked, we risk business closures, job losses, and a deeper cost-of-living crisis.”
The groups also noted that petrol prices have remained high across the country, with reports indicating that fuel sold for as much as ₦1,371 per litre in parts of Lagos, Abuja and other cities.
In response to the rising costs, governors elected on the platform of the All Progressives Congress (APC) met and pledged to introduce palliative measures to cushion the effects of increased petroleum prices on citizens.
The organisations called on the Federal Government to take urgent steps to stabilise the downstream petroleum sector and provide targeted support to vulnerable industries.
The warnings highlight growing concerns within Nigeria’s business community about the sustainability of operations under rising energy costs.
Increased fuel prices can directly affect transportation, production and supply chains, especially for small and medium enterprises.
For workers, potential job losses may arise if businesses scale down operations or shut down due to higher operating expenses. The situation may also affect household incomes and purchasing power.
The development underscores the close link between global energy markets and Nigeria’s domestic economic conditions, particularly in sectors dependent on fuel.
