A surge in petrol pump prices has prompted experts to warn that it could significantly increase malnutrition rates across Nigeria. During an interview with journalists in Abuja on Sunday, they explained that the rising cost of living, particularly for low-income households, may lead to widespread health challenges.
The Nigeria National Petroleum Company Limited (NNPCL) on September 3, revised petrol prices upwards, from N568 and N617 per litre to N897 per litre. This substantial hike has stirred concerns about its broader implications.
Development economist Mohammad Nazifi pointed out that the new prices will disproportionately affect low-income earners, largely due to the inevitable rise in transportation costs, which will also drive up food prices. “The rising cost of food and other essentials can lead to malnutrition or food insecurity, particularly among vulnerable populations. These factors can exacerbate health inequalities and strain public health systems,” Nazifi stated.
Nazifi also warned that the price hike would heighten inflationary pressure, increasing production costs across various sectors. “Nigeria’s inflation rate, already at 34.19% as of September 2024, could worsen with this development. Higher fuel prices will drive up transportation and production costs, which will, in turn, be transferred to consumers, leading to a general increase in prices,” he explained. He further noted that this could lead to a cycle of rising costs, wages, and potential cost-push inflation, which would erode purchasing power and stifle economic growth.
Echoing these sentiments, economist David Ambi underscored the critical role petroleum prices play in inflation, especially in economies like Nigeria’s, which rely heavily on petrol for both transportation and production. “When fuel costs rise, expenses across the entire supply chain go up, affecting everything from foodstuffs to electronics. This is what we refer to as ‘cost-push inflation’,” Ambi commented.
Public analyst Bulus Dabit expressed concern that the fuel price hike could deepen poverty by diminishing the purchasing power of already struggling citizens. “Low-income households will bear the brunt of this increase, as they are less equipped to absorb these additional costs,” he said. Dabit also criticised the decision to raise prices, suggesting it was driven more by external economic interests than by genuine economic necessity. “Any decision like this should involve widespread consultations and be based on values such as empathy, justice, and accountability,” he added.
Charity Bello, secretary of the Small-holder Women Farmers Organisation in Nigeria (SWOFON) in Plateau, further stressed the impact of rising fuel prices on food commodities. “As long as petrol prices continue to rise, the cost of food will not decrease. If the government wants to stabilise food prices, they must address the ongoing insecurity in rural farming areas and consider a reduction in fuel costs,” she advised.
