The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) says reduction in the price of petrol – Premium Motor Spirit (PMS) – would bring down cost of doing business in the country.
The Federal Government recently reduced the price of PMS from N97 to N87 per litre. The reduction was informed by the crash in the price of crude oil globally.
In a statement, NACCIMA said the reduction of pump would ease part of the cost burden being faced by the private sector.
Speaking at its first quarterly council meeting held in Abuja last week, Bassey Edem, acting national president of the association, said the slash could have a positive impact on businesses and the general price level as cost of doing business would relatively drop.
It is expected that the N10 reduction will reduce the energy costs borne by firms as power supply cuts in the economy continue.
Read also: PPPRA signals possible further reduction in petrol pump price
“This positive action is, however, pressured by the devaluation of the naira against all foreign currencies as a result of our central bank’s inability to fully defend the naira,” Edem said.
It was a right step in the direction to fully deregulate the oil sector and allow market forces to determine the prices, he said, stressing that the full deregulation of the downstream sector of the oil industry would allow that monies that had been earmarked for oil subsidy payments be directed towards other pressing economic developmental programmes.
As part of the chamber’s communiqué, Edem said the Federal Government should aggressively complete the total overhauling of all the country’s refineries in preparation for their privatisation/full commercialisation, so as to save the foreign exchange currently being lost to imported refined petroleum product.
He said counsels the Federal Government, INEC, security agencies and other stakeholders should work to ensure that the forthcoming election was held peacefully.
ODINAKA ANUDU
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