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 recent increase in petrol prices, pending the outcome of a court case challenging the company’s authority to raise prices.
Last month, SERAP filed a lawsuit against the president and NNPCL over their failure to reverse what it describes as an unlawful hike in petrol prices.
The suit also seeks an investigation into allegations of corruption and mismanagement within the NNPCL.
In a letter dated 12 October 2024, signed by SERAP’s deputy director, Kolawole Oluwadare, the organisation expressed concerns that the latest price increase undermines the court proceedings.
The letter warned that continuing with the price hike could interfere with the judicial process and damage public trust in the legal system.
SERAP stressed that everyone, including public officials, is bound by the rule of law. The organisation argued that it is crucial to ensure the court’s authority and maintain the integrity of the legal process, especially in a matter of public interest.
The letter also reminded the president of his repeated promises to govern in accordance with the Nigerian Constitution and the rule of law, noting that raising fuel prices while a court case is ongoing could jeopardise the fairness of the trial and diminish public confidence in the judiciary.
The petrol price was recently raised from ₦897 to ₦1,030 per litre, marking the second increase in one month, after a previous rise from ₦600 to ₦855 per litre in September.
SERAP warned that failure to reverse the price hike could lead to legal action, including potential contempt of court proceedings, as the increase would disproportionately affect vulnerable Nigerians.
The organisation referenced concerns raised in the Auditor-General’s 2020 report, which revealed that the NNPCL had failed to remit over $2 billion and ₦164 billion in oil revenues to the Federation Account.
According to SERAP, the report also noted that the company had deducted ₦151,121,999,966 from oil royalties assessed for 2020 by the Department of Petroleum Resources without justification.
Additionally, the organisation said the NNPCL had not accounted for $19,774,488.15 collected as government revenue, and the Nigerian Petroleum Development Company (NPDC) failed to account for $2,021,411,877.47 and ₦13,313,565,786.49 in royalties from crude oil and gas sales.
SERAP’s lawsuit, which also names the Attorney General of the Federation, seeks a fair resolution of these issues and urges the government to respect the judicial process.
It said allowing the court to rule on the legality of the initial petrol price hike is essential to upholding justice and protecting the rights of all parties involved.
