Nigerian manufacturers would be forced to slash employment, curtail operations, and hike prices as fuel costs rise, according to the chairman of the primary industry organisation, the Manufacturers Association of Nigeria.
According to Segun Ajayi-Kadir, director-general of the Manufacturers Association of Nigeria, the cost of gasoline has more than quadrupled this month to as high as N800 ($1.92) per liter in Africa’s largest economy. According to figures from the National Bureau of Statistics, this compared to an average of N312 in February and N288 in January.
In Nigeria, manufacturing accounts for around 13% of total production. According to Bloomberg statistics, the fuel price in Nigeria was among the lowest in Sub-Saharan Africa until this month’s increase. It would be among the highest on the continent, at N800.
Nigerians are also dealing with diesel, and gasoline shortages, which have resulted in long lines outside filling stations after the government rejected containers of fuel due to excessive methanol content. At the same time, around 40% of the country’s population is experiencing longer-than-usual power disruptions due to the country’s aging national electrical system.
Nigeria’s state-owned Nigerian National Petroleum Corporation said this week that it will provide licenses to local airlines allowing them to import aviation fuel on their own, in an effort to prevent them from canceling flights due to a shortage.