Nigerian lawyer and human rights activist Femi Falana has criticized the Nigerian National Petroleum Company (NNPC) for fixing fuel prices, stating that it is illegal and unconstitutional. According to Falana, the NNPC’s actions violate Section 205 of the Petroleum Industry Act, which stipulates that petroleum prices should be determined by market forces.
Falana pointed out that the Executive Vice President of Downstream NNPC Ltd, Adedapo Segun, had previously stated that the market has been deregulated, and petrol prices are now determined by market forces rather than the government or NNPC Ltd. However, the NNPC fixed the price of fuel refined by the Dangote Refinery and Petrochemical Company Limited last month, contradicting Segun’s statement.
Falana accused the NNPC of serially violating the law setting it up. He also noted that the company announced new pump prices for fuel refined by the Dangote Refinery without allowing market forces to determine the prices.
The controversy surrounding fuel pricing comes amid reports of economic hardship in Nigeria, with the naira dropping further and inflation hitting 30%. Economists have blamed the naira crash and fuel price hikes for the economic woes.