Femi Falana, Senior Advocate of Nigeria (SAN) and Chair of the Alliance on Surviving COVID-19 and Beyond (ASCAB), has raised legal concerns over the actions of the Nigerian National Petroleum Company Limited (NNPCL) regarding fuel pricing in the country.
He contended that the NNPCL lacks the statutory mandate to determine petrol prices under Nigeria’s current deregulated market structure.
In an official statement, Falana referenced remarks made on September 5, 2024, by the Executive Vice President of Downstream at NNPC Ltd, Mr. Adedapo Segun. Segun had emphasized that the Petroleum Industry Act (PIA), particularly Section 205, enforces a deregulated framework in which petroleum prices should be governed by market forces.
He stated, “The market has been deregulated, meaning that petrol prices are now determined by market forces rather than by the government or NNPC Ltd. Additionally, the exchange rate plays a significant role in influencing these prices.”
Despite this, Falana argued that the NNPCL had taken actions contrary to Segun’s claim. He highlighted that the company recently set the price for fuel refined by the Dangote Refinery and Petrochemical Company Limited, without adhering to the free market pricing mechanism.
Furthermore, Falana disclosed that just yesterday, the NNPCL once again announced new pump prices for fuel refined by the Dangote Refinery, bypassing market dynamics, which should have been the sole determinant of pricing under the PIA.
Falana concluded that these actions by NNPCL, in fixing the prices of both imported and locally refined petrol, are unlawful and contravene the provisions of Section 205 of the Petroleum Industry Act.
He stressed, “These actions are illegal and void, as they blatantly violate the PIA’s directive that petroleum product prices be determined solely by market forces.”
