By Cecilia Ogezi
The National President of the Almushahid Initiative for Transparency and Accountability (AITA), Amb Aminu Majidadi, an Abuja-based non-governmental organization (NGO) committed to promoting transparency, accountability, and the fight against corruption, has thrown his weight behind the recent submission by renowned human rights lawyer, Femi Falana (SAN), regarding the illegalities surrounding Nigeria’s fuel pricing.
Femi Falana, in a strongly worded statement on Thursday, criticized the decision of the Nigerian National Petroleum Company Limited (NNPCL) to fix the prices of both imported and locally refined fuel, deeming it illegal, null, and void. He referenced Section 205 of the Petroleum Industry Act (PIA), which clearly stipulates that the prices of petroleum products are to be determined by market forces.
According to Falana, the NNPCL’s actions stand in stark violation of the law that governs its establishment. He pointed out that despite public declarations that the Nigerian fuel market had been deregulated, NNPCL has continued to dictate prices, including those of fuel refined by the Dangote Refinery and Petrochemical Company. This, he argued, disregards the role of market dynamics, such as exchange rates, which should naturally influence fuel prices in a deregulated economy.
The Executive Vice President of NNPC Downstream, Mr. Adedapo Segun, had previously emphasized that the PIA allows for a deregulated market where prices are determined by market forces. Yet, Falana noted, the company has repeatedly set prices outside of these forces, effectively undermining the spirit of deregulation.
AITA’s president expressed full support for Falana’s stance, underscoring the necessity for NNPCL to respect the laws governing its operations. He argued that allowing the company to arbitrarily fix prices undermines not only the legal framework but also the principles of transparency and accountability in Nigeria’s oil and gas sector.
He further stated that fuel prices should be reflective of market realities, rather than influenced by monopolistic tendencies or undue governmental control. Backing Falana’s legal arguments, the AITA president warned that unless the provisions of the PIA are strictly adhered to, the Nigerian populace will continue to bear the brunt of unfair pricing mechanisms.
This call for compliance with the PIA is in line with broader efforts to promote accountability within Nigeria’s oil and gas industry, a sector long plagued by allegations of corruption and inefficiency. By ensuring that market forces are allowed to function as intended, the AITA president stressed, both local and international investors would regain confidence in the country’s petroleum sector, fostering economic growth and stability.
Majidadi ponited out that the NNPCL’s price-fixing practices have drawn wide criticism, with many observers arguing that the company’s actions contradict its stated mission to operate transparently and in alignment with global best practices. As the controversy continues to unfold, stakeholders are urging the Federal Government to intervene and enforce the deregulation policies outlined in the PIA.
Noting that the wake of these developments, it remains to be seen whether NNPCL will reconsider its approach or face potential legal challenges that could reshape the landscape of fuel pricing in Nigeria.
He added that growing concerns over fuel pricing are further complicated by the ongoing economic difficulties in the country, with citizens already struggling to cope with the high cost of living. If market forces are allowed to truly dictate fuel prices, it could provide some relief to the populace, offering a more transparent and competitive pricing model.
