The Lagos Chamber of Commerce and Industry (LCCI) has put forward a six-month program to lower petrol prices, aiming for a 15 to 20 percent pump price reduction in order to lessen the strain that high energy and transportation costs place on Nigerian businesses and households.
In a Sunday statement, LCCI Director-General Dr Chinyere Almona called on the Federal Government to collaborate with domestic refiners, petroleum marketers, regulators, and other stakeholders to secure gradual, measurable, and lasting cuts in petrol prices.
Almona praised the Federal Government’s proposed petrol price stabilization mechanism, calling it timely given the rising energy and transportation costs that continue to weigh on business operations, household purchasing power, and the competitiveness of Nigerian enterprises.
The Chamber welcomed the proposed cap of ₦1,350 per liter on the ex-gantry or landing cost of petrol, subject to monthly reviews and public disclosure, saying it acknowledges the economic fallout of excessive volatility in energy prices.
Almona, however, cautioned that holding petrol prices steady at high levels would not deliver enough relief to businesses already contending with steep electricity tariffs, alternative power costs, costly financing, and mounting logistics expenses.
She noted that the proposed mechanism might shield businesses from abrupt price hikes but would not automatically ensure lower pump prices.
In her view, the government should judge the initiative not merely on its ability to temper price volatility but also on whether it can cut operating costs and enhance economic welfare.
The LCCI chief also warned that obliging refiners and importers to shoulder temporary cost increases and recoup them once market conditions improve could generate deferred obligations that, if not handled transparently, might ultimately drive prices higher.
To back the proposed six-month program, the Chamber urged the government to guarantee predictable and commercially viable crude oil supplies to domestic refineries, thereby reducing procurement uncertainties, foreign exchange exposure, and avoidable logistics costs.
It further called for faster roll-out of alternative transportation options, such as compressed natural gas (CNG) and electric vehicle infrastructure, to bring down the cost of moving goods and people nationwide.
Additional recommendations include tackling transportation bottlenecks, upgrading storage and distribution infrastructure, removing unlawful charges, and preserving exchange-rate and macroeconomic stability.
Almona also emphasized the importance of clear rules for the price-stabilization mechanism so as to prevent open-ended losses for refiners and importers and deter investment or set off fuel shortages.
She observed that Nigeria cannot shield its petroleum market from international oil price movements forever, adding that lasting relief demands lowering domestic costs that magnify the effects of global market swings.
The LCCI insisted that the policy’s real test should be lower petrol spending for businesses, reduced transportation and distribution costs, stronger competitiveness, and genuine relief for consumers
