The rights lawyer Femi Falana claimed she has said that the Nigeria National Petroleum Company (NNPC) lacks the power to set petroleum prices, according to the law that established it,
The Senior Advocate noted in a statement, “On September 5, 2024, the Executive Vice President of Downstream NNPC Ltd, Mr. Adedapo Segun, explained that Section 205 of the Petroleum Industry Act (PIA), which established NNPC Limited, stipulates that petroleum prices are determined by free market forces in Nigeria. According to him,
‘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.’
“However, contrary to this well-publicized statement, NNPCL fixed the price of fuel refined by the Dangote Refinery and Petrochemical Company Limited last month. The so-called market forces were not allowed to determine the price.”
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Accusing the company of serial violations of the law that established it, Falana, who leads an amalgamation of civil society organizations known as the Alliance on Surviving COVID-19 and Beyond (ASCAB), further claimed, “Yesterday, the Nigeria National Petroleum Company Limited announced new pump prices for fuel refined by the Dangote Refinery and Petrochemical Company. Once again, the so-called market forces were not allowed to determine the new fuel prices.
“The decisions of NNPCL to fix the prices of imported fuel and locally refined fuel are illegal, null, and void as they contravene the provisions of Section 205 of the Petroleum Industry Act, which stipulates that the prices of petroleum products shall be determined by market forces.”
