Subsidy: Abuja Chamber of Commerce seeks palliatives for SMEs

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Subsidy: Abuja Chamber of Commerce seeks palliatives for SMEs

The Abuja Chamber of Commerce and Industry (ACCI) says the removal of fuel subsidy will pose negative effects on Small and Medium Enterprises (SMEs) if not managed properly.

This is contained in a statement issued on Monday in Abuja by the President of ACCI, Dr Al-Mujtaba Abubakar.

Recalls that during the presidential inauguration on May 29, President Bola Tinubu announced the removal of the fuel subsidy.

Consequently, this resulted to increase in the prices of goods and services and long fuel queues at fuelling stations across the country.

Also, the Nigeria National Petroleum Company (NNPC) Limited officially increased the fuel pump prices to over N500 per litre in different parts of the country which caused increase in transportation fares.

Abubakar, who spoke on behalf of the Executive Council and members of ACCI, commended the fuel subsidy removal but urged the Federal Government to provide SMEs with business palliatives to ease the pressure.

According to him, though the removal of the fuel subsidy may seem as the right step in the right direction, as it deregulates the oil sector and allows for competition in the industry but the government should provide such palliatives.

“If this is properly implemented, it will provide cushion for the effect this immediate removal will have on small business owners,” Abubakar said.

He said that ACCI will be available to work with the Federal Government in marshalling out support the SMEs would need to alleviate the pressure the subsidy removal may have on their businesses.