Femi Falana, a human rights lawyer, stated on Wednesday that enabling the Nigerian National Petroleum Company Limited (NNPCL) to set the pump price for Premium Motor Spirit (PMS) is unconstitutional and an anomaly.
The senior advocate’s reply is in response to the NNPCL’s unexpected price increase from roughly N500 to N617 per litre on Tuesday, which marked the second petrol price review in two months.
Falana bemoaned in a statement that the NNPCL had seized the power of the Federal Government (FG) to determine fuel prices.
However, the lawyer reminded President Bola Ahmed Tinubu that in his inauguration address on May 29, he vowed that his administration will administer the country in accordance with the rule of law.
He also cited a Federal High Court decision that held that, under the combined effect of the Petroleum Act, the Price Control Act, and the Constitution, the Federal Government “must always fix the price of petroleum products sold across Nigeria.”
The Federal Government, however, was displeased with the decision and filed an appeal with the Appellate Court.
“Despite the fact that the appeal has not been decided, the Nigerian National Petroleum Corporation Limited has usurped the Federal Government’s authority to determine and fix the prices of petroleum products in the country.”
“It is undeniably clear that the NNPCL’s action is illegal and contemptuous because the Federal High Court’s judgment on the subject matter has not been set aside by a higher court,” Falana stated.
See the complete statement below:
President Bola Tinubu stated in his inaugural address on May 29, 2023, that his administration would administer the country in line with the rule of law. The promise implies that the acts of the government and its agencies will be carried out in accordance with the law.
Nigerians were surprised yesterday when the Nigeria National Petroleum Corporation Limited raised the pump price of petrol from N500 to N617.
After raising the price, the NNPCL claimed that it was determined by market forces. It is argued that the NNPCL’s rise in the pump price of gasoline is an affront to the rule of law because it is unconstitutional in every material way.
In the case of Bamidele Aturu v. Minister of Petroleum Resources
(FHC/ABJ/CS/591/2009), the Plaintiff challenged the Federal Government’s decision to deregulate the downstream sector of the petroleum industry and enable market forces to set petroleum product prices. In a landmark decision delivered on March 19, 2013, the Federal High Court, presided over by Adamu Bello J. (as he was then), held that the Federal Government “must always fix the price of petroleum products sold across Nigeria” under the combined effect of the Petroleum Act, Price Control Act, and the Constitution.
The Federal High Court specifically granted the following reliefs:
1. A DECLARATION that the Defendants’ policy decision to deregulate the downstream sector of the petroleum industry by not fixing the prices at which petroleum products may be sold in Nigeria is unlawful, illegal, null and void, and of no effect whatsoever, being in flagrant violation of section 6 of the Petroleum Act, cap P.10, Laws of the Federation of Nigeria, 2004.
2. A DECLARATION that the Defendants’ policy decision to deregulate the downstream sector of the petroleum industry by not fixing the prices at which petroleum products may be sold in Nigeria is unlawful, illegal, null and void, and has no effect whatsoever, as it is in flagrant violation of section 4 of the Price Control Act, cap P28, Laws of the Federation of Nigeria, 2004.
3 A DECLARATION that the Defendants’ policy decision to deregulate the downstream sector of the petroleum industry by not fixing the prices at which petroleum products may be sold in Nigeria is unlawful, illegal, null and void, and of no effect whatsoever, as it is in conflict with Section 16(1)(b) of the Federal Republic of Nigeria, 1999, which states that the Government shall control the national economy in such a way as to secure the maximum welfare.
4. A DECLARATION that the Defendants’ policy decision to deregulate the downstream sector of the petroleum industry by not fixing the prices at which petroleum products may be sold in Nigeria has the effect of making the Plaintiff’s and the generality of Nigerians’ freedom of movement illusory, and is thus illegal, unconscionable, and unconstitutional, and of no effect.
‘5. AN ORDER prohibiting the Defendants, their agents, privies, collaborators, and whomsoever and howeversoever from deregulating the downstream sector of the petroleum industry or failing to fix the prices of petroleum products as required by the Petroleum Act and the Price Control Act.”
Dissatisfied with the Federal High Court’s decision, the Federal Government filed an appeal with the Court of Appeal. Despite the fact that the appeal has not been decided, the Nigerian National Petroleum Corporation Limited has usurped the Federal Government’s authority to establish and regulate the prices of petroleum products in the country.
It is undeniably evident that the NNPCL’s behavior is unconstitutional and disrespectful, given the Federal High Court’s decision on the subject has not been overturned by a higher court.
It should be noted that the NNPCL is no longer a Federal Government agency, but rather a limited liability company governed by the Nigerian Upstream Regulatory Commission (NUPRC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority, which are in charge of the petroleum industry.
The NNPCL’s action has established that the corporation has maintained a monopoly in the importing and distribution of fuel in the country, in violation of the word and spirit of the Petroleum Industry Act, 2021. Following the liberalization of the petroleum sector, the NNPCL no longer has the authority to set the prices of petroleum products in any area of Nigeria. It is past time to stop the NNPCL from regulating the prices of petroleum products in the country.
SAN Femi Falana,
The Alliance on Surviving Covid 19’s Chair
as well as Beyond (ASCAB).
July 19, 2023
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