The Abeokuta Chamber of Commerce, Industry, Mines and Agriculture (ABEOCCIMA) has warned that the increase in the pump price of petrol and electricity tariff will lead to massive job losses, thereby increasing unemployment and crime rates in Nigeria. The president of ABEOCCIMA, Mr. Jare Oyesola, who spoke to Saturday Telegraph, said it was regrettable that “while other countries are giving palliatives to business owners to stimulate the economy in post – COVID-19 period, what our government is doing is only increasing cost.”
He added that, the effect of the hike in pump price of petrol and electricity tariff would not only increase the poverty level in the country, but also widen the gap between the rich and the poor. According to him, operators of Small and Medium Scale Enterprises would be the most affected by the Federal Government’s action.
He said: “The increase in the pump price of petrol will translate to increase in price of logistics and the direct impact of increase in price of electricity is increase in price of production cost, both of them are going to increase both the cost of logistics and production cost for Small and Medium Scale Enterprises (SMEs).
“It is going to lead to increase in prices of goods and services. But we must know that there is a price resistance by consumers due to COVID- 19, people are not having cash at hand, people are just returning to work, so it may lead to a lot of resistance of the increase in price by the consumers and that means if we are not careful a lot of job losses will occur and it will worsen the already saturated job market and increase the poverty level in the country.” Oyesola advised the gov-