NNPCL acted illegally by fixing fuel price, says Falana

NNPCL acted illegal by fixing fuel price, says Falana

 

Human rights lawyer and Senior Advocate of Nigeria (SAN), Femi Falana, has slammed the Nigerian National Petroleum Corporation Limited over the fresh fuel price hike, adding that it lacked constitutional powers to fix the prices of petrol.

 

In a statement released in his capacity as the chairman of the Alliance on Surviving Covid-19 and Beyond (ASCAB) on Wednesday, Falana said the prices of petrol should be fixed by market forces, adding that “the increase of the pump price of petrol by the NNPCL is an affront to the rule of law on the ground that it is illegal in every material in particular.” 

 

The statement read, “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 an affront to the rule of law on the ground that it is illegal in every material in particular. 

 

“In Bamidele Aturu v Minister of Petroleum Resources 

(Suit FHC/ABJ/CS/591/2009), 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:

 

“1. A DECLARATION that the policy decision of the Defendants 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, void and of no effect whatsoever being in vicious violation of the mandatory provision of section 6 of the Petroleum Act, cap P.10, Laws of the Federation of Nigeria, 2004.

 

“2. A DECLARATION that the policy decision of the Defendants 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, void and of no effect whatsoever being in flagrant violation of the mandatory provision of section 4 of the Price Control Act, cap P28, Laws of the Federation of Nigeria, 2004.

 

“3  A DECLARATION that the policy decision of the Defendants 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, void and of no effect whatsoever being in conflict with Section 16(1)(b) of the Constitution of the Federal Republic of Nigeria, 1999 which provides that the Government shall control the national economy in such manner as to secure the maximum welfare, freedom and happiness of every citizen on the basis of social justice and equality of status and opportunity.

 

“4. A DECLARATION that the policy decision of the Defendants 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 freedom of movement guaranteed in section 41 of the Constitution of the Federal Republic of Nigeria, 1999 illusory for the Plaintiff and the generality of Nigerians and is, therefore, illegal, unconscionable and unconstitutional and of no effect whatsoever.

 

“5. AN ORDER restraining the Defendants their agents, privies, collaborators and whosoever and howsoever from deregulating the downstream sector of the petroleum industry or from failing to fix the prices of petroleum products as mandatorily required by the Petroleum Act and the Price Control Act.”

 

“Dissatisfied with the judgment of the Federal High Court the Federal Government 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. 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 been set aside by a higher court.”

 

The renowned lawyer lampooned the NNPCL for exercising a monopoly in the importation and distribution of petrol which contradicted the Petroleum Industry Act of 2021.

 

“It ought to be pointed out that the NNPCL is no longer an agency of the Federal Government but a limited liability company which is regulated by 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,” Falana added.