Eigbe: Govt missed opportunity for guidance on petrol price adjustment

The Nigerian government's recent petrol price adjustment has left businesses and the public in a state of uncertainty and vulnerability due to a lack of clear guidance. Esili Eigbe, Director at Escap Management, highlighted the abrupt nature of the adjustments, warning that this move is likely to fuel inflation and could have a disproportionate impact on the economy. The absence of timely communication from regulators or the NNPC has raised concerns among stakeholders, particularly small businesses, who are at risk of facing spiraling inflation if expectations are not managed effectively. In a recent interview, Eigbe emphasized the importance of providing transparent information to all businesses, regardless of size, for effective planning and decision-making. The lack of clarity surrounding the targeted price and calculation metrics has also added to the confusion, leaving many stakeholders questioning the rationale behind the adjustments and the potential implications for the market. As the government grapples with the aftermath of the petrol price increase, there is growing pressure for more transparency and communication to mitigate the impact on inflation and economic stability. Additionally, the shift towards alternative energy sources has emerged as a potential opportunity amidst the price shock. With the rising cost of fuel and electricity, there is a need to diversify the energy mix and promote more affordable options such as solar and natural gas. While the transition to alternative energy presents challenges, it also offers a pathway towards a more sustainable and cost-effective energy sector. However, the swift move towards alternative energy sources will require careful planning and adequate support to ensure a smooth transition for businesses and consumers. In light of the inflationary impact of the petrol price adjustment, it is imperative for regulators and policymakers to work collaboratively to address the concerns raised by stakeholders and chart a strategic path forward for the Nigerian economy.