- Human rights lawyer, Femi Falana (SAN), has condemned the decision of the Nigerian National Petroleum Company Limited (NNPCL) to fix the price of petrol produced by the Dangote Refinery. Falana argues that this move violates the provisions of the Petroleum Industry Act (PIA), which stipulates that fuel prices should be determined by market forces.
In a statement on Tuesday, Falana pointed out that the government had deregulated the petroleum sector, and it is therefore illegal for the NNPCL to set the price for petrol. He noted that the NNPCL had previously stated that factors like foreign exchange rates influenced petrol prices, but by fixing the price of petrol from the Dangote Refinery, the company has acted in contradiction to its earlier stance and Section 205 of the PIA.
Falana specifically criticized the NNPCL for setting a minimum price of ₦950 per litre for petrol from the Dangote Refinery, arguing that this price is higher than imported petrol, which undermines efforts to reduce costs. He also questioned why NNPCL is purchasing fuel from the refinery in dollars when the Federal Executive Council had directed transactions between the two parties to be conducted in naira.
“By selling petrol produced locally at a higher price than imported products, the NNPCL is sabotaging the national economy,” Falana stated, further accusing the company of justifying unnecessary price hikes with claims of dollar-based transactions. He highlighted that under Nigerian law, specifically Section 20 of the Central Bank Act, it is illegal to refuse naira as a means of payment.
Falana also criticized the NNPCL’s monopoly over the petrol produced by the Dangote Refinery, arguing that other marketers should be allowed to purchase and distribute fuel from the refinery. He called on the Federal Competition and Consumer Protection Commission (FCCPC) to intervene and prevent NNPCL’s monopolistic control, which, according to him, contradicts the spirit of Section 205 of the PIA.
The NNPCL had recently commenced the lifting of petrol from the Dangote Refinery, setting prices at ₦950 per litre in Lagos and its environs, with prices expected to exceed ₦1,000 per litre in states like Borno.
