LCCI warns of worsening fuel affordability amid global oil crisis
The Lagos Chamber of Commerce & Industry has raised alarm over persistent fuel affordability challenges in Nigeria, attributing the situation to the ongoing Middle East conflict and the surge of global crude oil prices to around $112 per barrel.
Dr. Chinyere Almona, LCCI’s Director-General, highlighted that the recent fourth upward adjustment of Dangote Refinery’s gantry price to about N1,245 per litre signals intensifying pressure on the downstream market, with projections trending toward N1,500 per litre. She stressed that these developments are transmitting inflationary shocks across transportation, food, and industrial production.
Almona described the affordability challenge as a reflection of Nigeria’s structural supply deficit, noting that domestic petrol demand of 50–53 million litres per day continues to outstrip local refining capacity, worsening price pressures. She called for government interventions to focus on strategic market stabilization rather than blanket price suppression.
“Immediate priorities should include targeted, time-bound support for critical sectors such as transportation, agriculture, and SMEs to mitigate inflationary spillovers while avoiding inefficient subsidies,” she said. Almona also emphasized stabilizing the naira through improved foreign exchange liquidity and policy coordination, pointing out the strong exchange-rate pass-through into fuel pricing.
She further advocated for urgent action to boost crude production for local refineries and ensure that both the Federal Government and the Nigerian National Petroleum Company Limited enforce domestic crude supply obligations under the Petroleum Industry Act (PIA), with at least 300,000 barrels per day allocated to refineries, particularly the Dangote facility.
Almona called for a transparent naira-for-crude framework, clear regulatory pricing guidelines, and accelerated operationalization of licensed and modular refineries to reduce market concentration. She warned that addressing constraints such as FX volatility, logistics inefficiencies, and distribution bottlenecks is critical to stabilizing prices and improving market efficiency.
She concluded that sustainable moderation of fuel prices can only be achieved through structural reforms, expanded domestic supply, competition, and transparency across the value chain. “With disciplined execution and strong public-private collaboration, Nigeria can turn this challenge into a catalyst for a more resilient, competitive, and self-sufficient energy ecosystem,” Almona said.
She added that Nigeria has the opportunity to position itself as an alternative oil and gas supplier to African and European markets, especially given the ongoing crises in the Gulf region, creating new prospects for long-term regional energy security.
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