The recent abrupt petrol price increase by the Nigerian National Petroleum Corporation (NNPCL) has drawn sharp criticism from prominent legal figure, Falana.
The petrol price experienced its second impromptu review in less than two months, soaring from around N185 in May.
In a statement released on Wednesday, the Senior Advocate of Nigeria, Falana, pointedly reminded the public of President Bola Tinubu’s commitment to govern the country in line with the rule of law, as stated in his inaugural address back in May.
Citing a significant ruling from the Federal High Court, Falana emphasized that the Federal Government is legally obligated to set the price of petroleum products nationwide.
This obligation is dictated by the combined effect of the Petroleum Act, Price Control Act, and the Constitution, he stated.
See also: PDPcondemns petrol price hike, suggest new price
According to him, the Federal Government was dissatisfied with the judgement of and filed an appeal at the Court of Appeal.
“Even though the appeal has not been determined the Nigerian National Petroleum Corporation Limited has usurped the power of the Federal Government to determine and fix the prices of petroleum products in the country,” Falana said.
“It is undoubtedly clear that the action of the NNPCL is illegal and contemptuous since the judgment of the Federal High Court on the subject matter has not aside by a higher court.”
See the full statement below:
NNPCL LACKS POWER TO FIX PRICE OF PETROL
In his inauguration address delivered on May 29, 2023, President Bola Tinubu announced that his administration would govern the country in accordance with the rule of law. The implication of the commitment is that the actions of the Government and its agencies will be carried out under the law. The people of Nigeria were taken aback yesterday when the Nigeria National Petroleum Corporation Limited increased the pump price of petrol from N500 to N617. After increasing the price the NNPCL turned round to claim that it was fixed by market forces. It is submitted that the increase of the pump price of petrol by the NNPCL is is an affront to the rule of law on the ground that it is illegal in every material particular.
In Bamidele Aturu v Minister of Petroleum Resources
(Suit No FHC/ABJ/CS/591/2009), the Plaintiff challenged the plan of the Federal Government to deregulate the downstream sector of the petroleum industry and allow market forces to determine the prices of petroleum products. In a landmark judgment delivered on March 19, 2013, the Federal High Court, presided over by Adamu Bello J. (as he then was) held that by the combined effect of the Petroleum Act, Price Control Act and the Constitution the Federal Government “must always fix the price of petroleum products sold across Nigeria.”
Specifically, the reliefs granted by Federal High Court include the following:
the Nigerian Upstream Regulatory Commission (NUPRC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority in charge of the petroleum industry. The action of the NNPCL has confirmed that the company has continued to exercise monopoly in the importation and distribution of petrol in the country contrary to the letter and spirit of the Petroleum Industry Act, 2021. Having liberalised the petroleum sector the NNPCL lacks the power to fix the prices of petroleum products in any part of Nigeria. It is high time that the NNPCL was restrained from further fixing the prices of petroleum products in the country.
Femi Falana SAN,
The Chair, Alliance on Surviving Covid 19
and Beyond (ASCAB).
July 19, 2023