Nigeria has experienced another round of fuel price increases, leaving its citizens grappling with the implications of soaring energy costs. This decision by the government has triggered a wave of discontent and concern across the nation, with social enterprises being particularly affected. In this article, we delve into the fuel hike issue, examining its impact on social enterprises and the broader implications for Nigeria’s economy.

Getty Images

On 18th of July 2023, the Nigeria National Petroleum Company Limited (NNPCL) announced an increase in fuel prices, raising the cost per liter to 617Naira/Litre. This decision came as a shock to many citizens, who already face economic hardships and a high cost of living. The fuel hike not only affects individuals and households but also has significant ramifications for social enterprises operating in Nigeria.

Fuel as a Lifeline for Social Enterprises

The increase in fuel prices directly impacts their operations, particularly those involved in transportation, logistics, and small-scale manufacturing.

Transportation plays a vital role in the distribution of goods and services for many social enterprises. From delivering products to remote communities to transporting raw materials, fuel costs represent a substantial portion of their expenses. As prices surge, these enterprises face a challenging dilemma: either absorb the additional costs, leading to reduced profit margins, or pass them on to consumers, potentially hindering access to their products and services for vulnerable communities.

Moreover, social enterprises involved in manufacturing processes that require electricity or fuel-powered machinery also bear the brunt of the fuel hike. These enterprises often operate on tight budgets, and any increase in energy costs eats into their limited resources. As a result, their ability to create positive social impact may be compromised, hindering growth and sustainability.

Implications for Social Impact

The fuel hike not only affects the financial viability of social enterprises but also has far-reaching implications for the communities they serve. Many social enterprises focus on providing affordable and essential goods and services to low-income individuals, aiming to uplift marginalized communities and alleviate poverty.

With the surge in fuel prices, these enterprises face the challenge of maintaining affordable pricing for their products and services. As the cost of production rises, they may be forced to increase their prices, limiting access for those who need them the most. Consequently, the impact and reach of these social enterprises may be curtailed, exacerbating socio-economic inequalities.

Addressing the Challenges

To mitigate the adverse effects of the fuel hike on social enterprises, concerted efforts are required from various stakeholders. The government must consider the broader implications of such price increases and explore alternative solutions that balance the needs of the economy and the well-being of its citizens.

Additionally, collaboration between social enterprises, non-profit organizations, and impact investors can foster innovative solutions. By pooling resources and sharing expertise, these stakeholders can explore energy-efficient technologies, renewable energy sources, and sustainable practices, reducing reliance on costly fossil fuels.


Nigeria’s fuel hike presents significant challenges for social enterprises striving to create positive social impact. The increase in fuel prices directly affects their operations, hindering their ability to serve vulnerable communities and maintain affordable pricing. As the government and stakeholders work towards finding sustainable solutions, it is crucial to prioritize the needs of these enterprises, as they play a vital role in addressing socio-economic challenges and driving inclusive growth.

Categories Knowledge

Leave a Comment


Visit us at Desk at The Bulb, 39 Ikorodu Rd, Jibowu, Yaba, Lagos

This will close in 20 seconds