Global Energy Crisis Sparks Alarm: Middle East Conflict Threatens Business Viability and Jobs in Nigeria

Leaders of major Nigerian business and labour organisations have warned that the ongoing conflict in the Middle East and its resulting surge in global energy costs is putting thousands of businesses at risk of shutting down and could lead to significant job losses if left unchecked.

Representatives from the Nigeria Employers Consultative Association (NECA), Nigeria Labour Congress (NLC), Lagos Chamber of Commerce and Industry (LCCI) and the Association of Small Business Owners of Nigeria (ASBON) collectively raised concerns this week, saying that rising fuel prices are squeezing profit margins, driving up production costs and eroding household purchasing power across key economic sectors.

NECA’s Director-General, Adewale-Smatt Oyerinde, described the situation as “alarming,” noting that while crude oil prices had risen globally due to geopolitical instability, domestic energy costs were also increasing sharply a trend that threatens industrial operations, transport and agriculture. He emphasised that higher fuel and diesel prices were pushing up logistics and production costs, which smaller firms may not survive without intervention.

“These rising costs are not only impacting businesses’ bottom lines,” Oyerinde said, “they are also squeezing consumers and pushing the cost of living higher. If this trend continues unchecked, we risk not only business closures but widespread job losses.”

Echoing NECA’s concerns, NLC President Joe Ajaero said that the crisis was putting jobs at risk and urged the government to use increased revenues from the current economic environment to cushion workers and citizens. Meanwhile, LCCI and ASBON highlighted how currency volatility, supply chain disruptions and higher import costs are adding to operational pressures on firms throughout Nigeria.

The warnings come as petrol prices in major cities like Lagos and Abuja have climbed, increasing the cost of transport and basic goods for many households, and prompting calls from business groups for immediate government action to stabilise the market and support vulnerable industries.