ABUJA, Nigeria — The Socio-Economic Rights and Accountability Project, SERAP, has called on President Bola Tinubu to instruct the Nigerian National Petroleum Company Limited, NNPCL, to reverse the latest hike in petrol prices.
This appeal comes as a lawsuit challenging the legality of the recent increases is pending before the Federal High Court in Abuja.
In an open letter dated Saturday, October 12, 2024, and signed by SERAP deputy director Kolawole Oluwadare, the organisation warned that the increase in fuel prices could undermine judicial proceedings.
SERAP filed the lawsuit last month to contest the pump price hikes and to demand investigations into alleged corruption and mismanagement within NNPCL.
“The latest increase in petrol prices makes a mockery of the case pending before the Federal High Court and creates a risk that the course of justice will be seriously impeded or prejudiced,” the letter reads.
“One of the fundamental principles of the rule of law is that it applies to everyone, including presidents and CEOs of public institutions.”
Legal and Economic Implications
SERAP argues that allowing the court to decide on the legality of the price hikes without interference is essential for maintaining public trust in Nigeria’s judiciary.
“Increasing petrol prices while the Federal High Court case is pending would prejudice the outcome and damage public confidence in the court,” the organization wrote.
The letter further references Tinubu’s earlier commitments to uphold the rule of law, quoting his inaugural address in May 2023: “Nigeria will be impartially governed according to the Constitution and the rule of law.”
SERAP also hinted at possible legal consequences if the government fails to act.
“We would be grateful if the recommended measures are immediately taken, failing which SERAP shall consider contempt proceedings and other legal actions to compel compliance in the public interest,” the organization stated.
Rising Fuel Prices and Public Concerns
The NNPCL has raised petrol prices twice in the span of a month, sparking public discontent.
The price of premium motor spirit (PMS) jumped from ₦897 to ₦1,030 per liter in October, following an earlier increase from ₦600 to ₦855 per liter in September.
Reports suggest that a shortage in supply, driven by a $6 billion debt dispute between the NNPCL and fuel suppliers, contributed to the hikes.
The sharp rise in prices has compounded economic hardships for Nigerians, with inflation further straining household budgets. SERAP warns that the government’s actions could have severe consequences for vulnerable communities if unchecked.
“The latest increase would seriously undermine the integrity of the Nigerian Constitution and have dire consequences for the most disadvantaged Nigerians,” the letter added.
Allegations of Mismanagement and Missing Funds
In addition to the lawsuit over fuel prices, SERAP has demanded investigations into NNPCL’s alleged financial mismanagement.
A 2020 report from the Auditor-General of the Federation revealed that NNPCL failed to remit over $2 billion and ₦164 billion in oil revenues into the Federation Account, raising concerns about possible diversion of public funds.
The report also cited unaccounted revenues from the Nigerian Petroleum Development Company (NPDC) Ltd, amounting to $2 billion and ₦13.3 billion.
The Auditor-General has called for the recovery of these funds and for those responsible to be handed over to anti-corruption agencies, including the Independent Corrupt Practices Commission (ICPC) and the Economic and Financial Crimes Commission (EFCC).
Court Case and Judicial Integrity
SERAP’s lawsuit, filed under suit number FHC/ABJ/CS/1361/2024 at the Federal High Court in Abuja, names President Tinubu, the NNPCL, and the Attorney General of the Federation, Lateef Fagbemi, as respondents.
The legal challenge focuses on the legality of the fuel price increases and calls for a probe into NNPCL’s financial practices.
“The core of judicial independence is the liberty of judges to decide cases without improper interference,” SERAP emphasised.
“Reversing the latest increase would allow the court to render a fair decision on the merits of the case.”
With public outrage mounting and the cost of living continuing to rise, the outcome of the case is expected to have significant implications for Nigeria’s economy and governance.
The Federal High Court is set to deliberate on the matter in the coming weeks.
The NNPCL and the Office of the President have yet to respond to SERAP’s letter.
