THE Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture says the global energy crisis created by the Russia-Ukraine war will increase inflation and deflate the purchasing power of Nigerians.
In a statement signed by the President of the association, Ide Udeagbala, the chamber said the implications of the global energy crisis, which has already led to a significant increase in the price of diesel, for the Nigerian economy would be far-reaching as the use of these products is entrenched in the production and transportation processes of both the public and private sectors.
The statement read in part: “Our association is extremely concerned about the rising prices of petroleum products; particularly diesel and aviation fuel; a hike which is very possibly an effect of the ongoing conflict in Europe and made worse by a lack of domestic production to meet demand despite the existence of refineries.”
“Nevertheless, we do not expect that the shutdown of flights over the scarcity of aviation fuel and the issues of the national grid to bring the economy to a standstill in the short or medium term, rather, with rising prices we expect rising inflation, further erosion of the purchasing power of the population, and redistribution of wealth that plunges more of the population below the poverty line. This is the likely result of the private sector seeking to adapt and adjust to the new realities.”
The association also called for incisive policy implementation within the energy sector to limit the economy’s exposure to global shocks and serve as a springboard for sustained economic growth.
Article first published on the Punch Website