A drawn out war in the Middle East risks piling pressures on Nigeria’s fragile business sector, further unsettling investors, says the Centre for the Promotion of Private Enterprise (CPPE).

With manufacturers facing renewed pressures from skyrocketing fuel prices, worsening electricity supply and inflation, the group fears the effects on profit margins will impact business sustainability, particularly small and medium enterprises (SMEs).

Speaking on the development yesterday, CPPE Chief Executive Officer, Muda Yusuf, demanded a quick response from the government. He said: “Businesses are already contending with multiple macroeconomic pressures, including high inflation, elevated interest rates, and weak consumer purchasing power. “The latest escalation in energy costs, therefore, compounds an already challenging operating environment.

“Without deliberate adjustments by businesses and supportive policy interventions from the government, rising energy costs could significantly erode profit margins, weaken business sustainability and dampen economic growth. “Against this backdrop, we outlined key strategic measures that both businesses—particularly small and medium enterprises —and government should adopt to mitigate the impact of the current energy crisis.”

He added: “Improving energy efficiency remains the quickest and most cost-effective strategy for businesses to manage rising energy costs. “Firms should undertake a comprehensive review of their energy consumption patterns to minimise waste and maximise productivity per unit of energy used.

“Businesses should intensify efforts to improve energy efficiency within their operations as a key strategy for managing rising fuel costs. “This includes optimising generator operating hours, deploying energy-efficient machinery and equipment, strengthening internal energy management practices, and promoting energy conservation among staff.”