The Manufacturers Association of Nigeria (MAN) has cautioned that the persistent increase in petrol price may force businesses to raise their product prices, scale down operations, or even shut down. In a statement titled “MAN Enumerates Impacts of Petrol Price Hike on Economy,” Director General Segun Ajayi-Kadir highlighted the negative impact of the price hike on the economy and manufacturers’ production costs.
The association noted that the increased cost of transportation, logistics, energy, and other production expenses will negatively affect manufacturing performance, profit margins, and consumer purchasing power. Small and medium-sized enterprises (SMEs) may be particularly vulnerable to the price hike.
MAN attributed the petrol price increase to global crude oil price hikes, refinery downtime, and the removal of fuel subsidies. The association warned that the price hike will lead to increased costs, reduced demand, and potential inflation, ultimately affecting household budgets and the manufacturing sector’s performance.
