By Cross Udo, with agency report
Tuesday’s Premium Motor Spirit (PMS) price hike has continued to generate criticism in nearly all parts of the country. Citizens are beginning to feel the harsh economic effect of the Nigerian National Petroleum Company Limited’s decision.
The NNPCL increased the pump price of petrol from ₦568 to ₦855, ₦897 per litre (depending on the location) amid lingering fuel scarcity in the country.
The newly increased price came after NNPCL admitted that it owed its suppliers more than $6bn in debt.
Stakeholders from various sectors have united in their concern, warning that inflation may soon reach unprecedented levels.
This collective voice underscores the shared impact of the petrol price hike on all segments of society.
In Niger State, the National Union of Road Transport Workers (NURTW) and the Tricycle Owners Association of Nigeria (TOAN) have announced an increase in transport fares due to the sharp rise in the price of PMS, a move that will directly affect the cost of living for many Nigerians.
The situation was not different in Abia State, where some traders, transport operators, and artisans decried the hike, lamenting that it would ‘definitely kill many businesses.’
Similarly, the Trade Union Congress of Nigeria (TUC) kicked against the latest increase, warning that it would worsen worker poverty.
*Presidency summons Minister Lokpobiri, Kyari, Ribadu over crisis
Following the situation, President Bola Tinubu yesterday directed his deputy, Senator Kashim Shettima, to summon the Minister of State, Petroleum, Heineken Lokpobiri, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari, and the National Security Advisor (NSA) over the recent increase in the petrol pump price and the scarcity of the product in different parts of the country.
Also at the meeting was the Executive Director of Nigeria Mainstream, Downstream Petroleum Regulatory Authority (NMDPRA), Kalu Okuoha.
Speaking to State House correspondents after the meeting with the Vice President, Lokpobiri said, “We were summoned by the Vice President, whom Mr President directed to summon this meeting, and we have been with him to brief him about what is going on across the country.
“The Vice President summoned us, and we’ve been with him to brief him about what is happening nationwide. And what is essential is for us to convey to Nigerians that the President is empathetic about what is happening in the country. He is concerned about the hardship of Nigerians, so he directed the Vice President to call this meeting so that we could reflect on what is happening in the country.
“What is essential is that products are available in the country, and we believe that between now and the weekend, products will be available across the country’s length and breadth. The price could be high in some other areas, much higher in some other locations, and in some places, much more than you know in different areas.
“But the price will stabilise when products are available across the country. But what is essential is that the government is not fixing prices. This sector is deregulated. And we believe that with the availability of products, the price will find its level. And this is important for Nigeria to know.
*Tinubu concerned, empathetic– Minister of State Petroleum
“The summary is that the President is empathetic about what’s happening. That’s why he directed this meeting. There are enough products in the country to meet the demands of Nigerians. There should be no panic buying. And we also believe that Nigerians need to know that the government is not fixing prices. That is what I want to convey to Nigerians.”
The Executive Director of NMDPRA, Kalu Okuoha, also said during the briefing, “All regulatory efforts are now geared towards stabilizing supply, with a resultant impact that will also be positive on price stability.
“To that objective, the regulator is ensuring increased operating hours from all loading depots; vessels are being cleared promptly and extended hours where safety can permit for truck-outs.
“More importantly, the reinforcement of the support being given to local refiners is also important because with increased production from them, we, indeed, like the minister, have said, there will be higher supply, which will stabilize the price. That’s the effort that the regulator is making.”
*Petrol hike will worsen workers’ poverty, says TUC
Meanwhile, in a statement yesterday, the TUC President, Comrade Festus Osifo, called on the Federal Government to “immediately rescind these decisions, promote policies that will strengthen the naira, and take decisive steps to alleviate the suffering of Nigerians.”
It argued that the sudden hike “implemented without consultation with critical stakeholders” 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,” Osifo said.
“We urge the government to rescind these decisions immediately, promote policies that will strengthen the naira, and take decisive steps to alleviate the suffering of Nigerians. The government must act swiftly to restore confidence and prevent further deterioration in the living conditions of its citizens.
“The Trade Union Congress of Nigeria remains committed to defending the rights and interests of Nigerian workers and will continue to advocate for policies that promote social justice, fair wages, and a decent work environment.”
The TUC said it was deeply troubled by the 250 percent increase in electricity tariffs, saying electricity was essential for the survival of society’s poorest.
It also faulted the timing and magnitude of the increases, wondering why the ordinary citizens would bear the pains of the government’s policies.
“Why does it have to be the common Nigerians bearing all the pains of the high cost of living while those in power enjoy increased allocation and affluence?” the statement read.
To Osifo, Congress has long posited several strategies that should be activated to strengthen the naira and give value to every kobo spent by Nigerians.
He stated that weak naira was one of the root causes of the country’s economic problems.
“We are deeply troubled by the further hike in electricity tariffs to 250 per cent, a service essential for the survival of the poorest in our society. The timing and magnitude of these increases, in the absence of any meaningful social security measures, demonstrate a lack of empathy and understanding of the challenges faced by ordinary Nigerians.
“Why does it have to be the everyday Nigerians bearing all the pains of the high cost of living while those in power enjoy increased allocation and affluence?
“The government has not made any concerted efforts to reduce the cost of governance or personal effects, nor have they focused on directing resources or effecting policies that would strengthen the naira and improve the standard of living of our citizens,” Osifo stated.
*It’s grossly insensitive, say Reps Minority caucus, demand reversal
Similarly, the minority caucus of the House of Representatives has vehemently condemned the recent announcement by the Nigerian National Petroleum Corporation Limited (NNPCL) to increase the price of petrol.
Reacting in a statement signed by the Minority Leader, Kingsley Chinda, the House Representatives Minority Caucus said this development was ill-timed and grossly insensitive to the harsh economic conditions currently being experienced by Nigerians across the country.
The caucus called on the Federal Government to intervene urgently and reverse the unwarranted increase in petrol prices.
The statement added, “At a time when the nation is grappling with unprecedented economic challenges, including rising inflation, unemployment, and the depreciating value of the naira, any further increase in the price of petrol will only exacerbate the suffering of the average Nigerian.
“The ripple effects of such an increase are far-reaching, impacting the cost of transportation, food, and other essential goods and services. This will ultimately erode the already fragile purchasing power of millions of our citizens, pushing more families into poverty.
“The Minority Caucus is deeply concerned that this decision by the NNPC appears to have been made without adequate consultation with relevant stakeholders, including the National Assembly, which represents the interests of the people.
“This unilateral action disregards the principles of transparency, accountability, and fairness, which should guide decisions affecting the lives of the citizenry. The current dire economic conditions, characterized by rising unemployment, soaring inflation, and widening inequality, have placed immense pressure on the livelihoods of citizens.
“These hardships have understandably triggered widespread protests, as people demand relief and accountability from those in power. The resulting unrest and chaos are stark reminders that economic instability can quickly escalate into broader social and political instability.
“While it is crucial for all stakeholders, including government, businesses, and civil society, to work collaboratively to address these economic challenges and restore stability before the situation deteriorates further, Tinubu’s government should, as a matter of urgency, address the connection between dire economic conditions and social unrest rather than create conditions that exacerbate the already dire financial situations.
“Not doing so merely provides fillips to the army of youths who are jobless to return to occupy the streets and unleash violence on our country. This government must learn lessons from the destructive effects of the national protests against lousy governance triggered by depressing and excruciating economic conditions.
“We, therefore, call on the Federal Government to urgently intervene and reverse this unwarranted increase in petrol prices. We also urge the government to explore and implement more sustainable measures to stabilize the economy without placing an additional burden on the people.
“This includes prioritizing the rehabilitation and upgrading of our local refineries, curbing corruption within the petroleum sector, and ensuring that subsidies genuinely benefit the masses rather than a few privileged individuals.
“The Minority Caucus stands with the Nigerian people in rejecting this petrol price hike and will continue to advocate for policies that prioritize the welfare and well-being of all citizens. We urge the government to listen to the people’s voice and take immediate steps to alleviate their suffering rather than aggravate it.”
Meanwhile, yesterday, traders and other stakeholders spoke in separate interviews with the News Agency of Nigeria (NAN) in Umuahia and expressed the fear that the situation would “definitely kill many businesses.”
They said that the removal of the subsidy was already crippling their businesses, with untold hardship on them.
A trader, Mr Chidubem Okoye, said that the situation had caused an immediate lull in business.
Okoye said that the increase had made life more difficult for traders and customers.
He said that the hike would have a negative multiplier effect on other sectors of the economy.
“Yesterday, my supplier in the North called me and asked me to send him more money because the prices of the items I ordered had increased.
“Once the goods arrive by Friday, I will adjust my price to reflect the current reality in the market,” he said.
A tricycle operator, Mr Anayo Udensi, feared the hike might compel him to quit the transport business.
“When the official pump price was N600 per litre, we were finding it difficult to cope. What will happen now that it has increased to about N1,000 per litre?
“I operate hire purchase, and if fuel takes almost all the money I make daily, and I settle the tricycle owner, how much will be left for me?
“Besides, many people now trek to save the N250 or N300 transport fare, so we only have a partial load.
Also, a hair stylist, Mrs Nkiruka Ejiofor, said that the salon business was no longer attractive and profitable because of the generator’s cost.
“I spend so much on fuel, and when we tell customers our new price, some either go away or ask us to do simple style, like weaving rather than retouching,” she said.
A generator repairer who identified himself simply as Andy said that the hike in fuel prices had seriously damaged his business.
“Since the price hike due to the subsidy removal, many people stopped using generators, drastically reducing the number of generators we fix daily. With the latest price hike, I’m worried because we are in for worse times.
“If we get two or three customers daily, we should thank God,” Andy said.
A civil servant, Mrs Priscilla Onyemaechi, said workers were the worst hit by the price hike, especially since the minimum wage had yet to be implemented.
“It has got to a point where civil servants can no longer go to work every day because of the increase in fares,” she said.
The respondents demanded the immediate reversal of the new price hike and urged President Bola Tinubu to initiate policies to alleviate the masses’ sufferings quickly.
