The Socio-Economic Rights and Accountability Project (SERAP) has urged President Bola Tinubu “to direct the Nigerian National Petroleum Company Limited (NNPCL) to immediately reverse the second increase in petrol prices in one month, pending the hearing and determination of the suit before the Federal High Court, Abuja challenging the legality of the powers of the NNPCL to increase petrol prices.”

The SERAP had last month filed a lawsuit against the president and NNPCL “over the failure to reverse the apparently unlawful increase in the pump price of petrol, and to probe the allegations of corruption and mismanagement in the NNPCL.”

In the open letter dated 12 October 2024 and signed by SERAP deputy director Kolawole Oluwadare, the organisation said: “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 in this case.”

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The SERAP said, “One of the fundamental principles of the rule of law is that it applies to everyone, including presidents and CEOs of public institutions.”

According to the SERAP, “It is in the public interest to keep the streams of justice clear and pure, and to maintain the authority and integrity of the court in the case.”

The SERAP also said, “Allowing the Federal High Court to hear and determine the case would be entirely consistent with the letter and spirit of the Nigerian Constitution 1999 [as amended], your oath of office and oft-repeated promises to uphold the rule of law.”

The letter, read in part: “SERAP notes that since assumption of office in May 2023 you have repeatedly promised, including in your inaugural speech, that ‘Nigeria will be impartially governed according to the Constitution and the rule of law.’”

“Increasing petrol prices while the Federal High Court case is pending would prejudice and undermine the ability of the court to do justice in the case, damage public confidence in the court, prejudice the outcome of the case, as well as impede the course of justice.”

“We would be grateful if the recommended measures are immediately taken following the receipt and/or publication of this letter, failing which SERAP shall consider contempt proceedings and/or other appropriate legal actions to compel your government and NNPCL to comply with our request in the public interest.”

“If not immediately reversed, the latest increase in petrol prices would seriously undermine the integrity of the Nigerian Constitution and have serious consequences for the most vulnerable and disadvantaged Nigerians and the public interest.”

“Protecting the right to a judicial recourse and due administration of justice is of utmost importance, being the cornerstone of an ordered society.”

“The only way in which SERAP can have a fair and effective access to justice in this matter is to allow the court to decide, one way or the other, on the merits of the case before it.”

“Reversing the latest increase in petrol prices would allow the court to render a decision on the central issues in the case, and protect the applicant’s rights and interests.”

“The latest increase in petrol prices while the Federal High Court case is pending constitutes an interference with the right of SERAP to fairly and effectively pursue a judicial challenge to the decision by your government and NNPCL regarding the first increase in petrol prices.”

“According to our information, the Nigerian National Petroleum Company (NNPC) Limited recently increased the price of premium motor spirit (PMS), also known as petrol, across its retail outlets.”

“The retail price of petrol was increased from N897 to N1,030 per litre. This is the second increase in one month, and followed the increase in September from N600 to N855 per litre, and in some instances above N900 per litre.”

“The two increases followed a scarcity caused by the reported refusal by suppliers to import petroleum products for the NNPCL over a $6 billion debt.”

“According to the recently published 2020 audited report by the Auditor General of the Federation (AGF), the Nigerian National Petroleum Corporation (NNPC) failed to remit over USD$2 billion and N164 billion of oil revenues into the Federation Account. The Auditor-General fears that the money may have been diverted into private pockets.”

“The NNPCL reportedly failed and/or refused to remit N151,121,999,966. The NNPCL without any justification deducted the money from the oil royalties assessed for 2020 by the Department of Petroleum Resources (DPR) now Nigerian Upstream Petroleum Regulatory Commission (NUPRC).”

“The NNPCL has failed to account for the missing public funds. The Auditor-General wants the money recovered and remitted into the Federation Account.”

“The NNPCL also failed to remit USD$19,774,488.15 collected as government revenue to the Federation Account. The Auditor-General wants the NNPCL to account for the money, recover and remit it into the Federation Account, and to hand over those suspected to be involved to the ICPC and the EFCC.”

“The Nigerian Petroleum Development Company (NPDC) Ltd also reportedly failed to account for USD$2,021,411,877.47 and N13,313,565,786.49 of royalties collected from crude oil and gas sales and gas flare.”

“The Auditor-General wants the public funds fully recovered and remitted into the Federation Account and for those suspected to be responsible for the missing public funds to be handed over to the ICPC and the EFCC.”

“SERAP last month filed a lawsuit asking your government and NNPCL challenging the lawfulness of the increase in the pump price of petrol, and the failure to probe the allegations of corruption and mismanagement in the NNPCL.”

“Joined in the suit as Respondents is the Attorney General of the Federation and Minister of Justice Mr Lateef Fagbemi, SAN. The suit number FHC/ABJ/CS/1361/2024 was filed at the Federal High Court, Abuja.”

“Increasing petrol prices would compromise the interest of the Applicant in the Federal High Court case filed against your government and the NNPCL, as the second increase in one month directly touches on the central issues and the legality of the first increase, which the court is set to determine and rule upon.”

“The core of the principle of judicial independence is the complete liberty of the judge to hear and decide the cases before them on the basis of facts and in accordance with the law, without any improper interference, direct or indirect.”

The lingering energy crisis in Nigeria has been traced to executive rascality, which has seen the Federal Government turn blind eyes to extant provisions of the Petroleum Industry Act, 2021 (PIA), which the Nigerian National Petroleum Company Limited (NNPC Ltd) appears to be breaching.

Legal luminary, Afe Babalola shared these views in an article in the Vanguard Newspapers, under the topic, ‘The NNPC Limited and Dangote Refinery Limited (2)’.

He pointed out that though section 64(c) provides that the NNPC Ltd has the power to lift and sell royalty oil, profit oil and tax oil on behalf of Nigeria, going by section 31(g) of the Act, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) also has the mandate to ensure the supply of crude oil to local refineries.

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After considering relevant provisions of the Act, the industrialist asserted that “The powers of the NNPC Limited (are) restricted to dealings in royalty oil, profit oil and tax oil only.”

He sees no reason why the relevant organs of the Nigerian government should look away while the NNPC Ltd, usurps the legal duties of the NMDPRA, which he views as “an unpardonable anomaly”, that tends to defeat the idea of free market economy.

He maintained that the seeming connivance of government has created “unfavourable market conditions,” in the energy sector, particularly on the pricing of the Premium Motor Spirit (PMS), also known as petrol, which “is against the intentions of the PIA”.

He noted that government’s undue and illegal interference in the pricing of petrol in the domestic market tends to support imported products as against locally manufactured ones, as typified by the relationship with the Dangote Petroleum Refinery and Petrochemicals.

Babalola pointed out that forcing the Dangote Refinery to import crude was another way of making sure that its products to hit the local market at higher prices, while paying subsidy on imported refined products, ‘smelt like sabotage’.

The “Federal Government of Nigeria should terminate the payment of subsidies on imported petroleum product since it is not paying any subsidy on petroleum products from Dangote Refinery. This will give both products a level playing ground in the market,” Babalola wrote.

He also averred that the FGN and NMDPRA “should call the NNPC Ltd to order for the sake of the Nigerian economy and collective good.

Babalola urged the powers that be to “put mechanisms in place to curb the powers of the NNPC Ltd to sabotage the purchase of PMS from Dangote Refinery.”

In what sounded like despair, Babalola lamented, “Unfortunately, these anomalies have gone unremedied, leading to unfair market practices in a free-market economy like Nigeria.”

The Managing Director, The Shell Petroleum Development Company of Nigeria Limited (SPDC) and Country Chair, Shell Companies in Nigeria (SCiN), Osagie Okunbor, has received an “Award of Excellence to an Astute and Visionary Technocrat” from the newly instituted executive leadership of the Petroleum Technology Association of Nigeria (PETAN).

Okunbor received the award in a short ceremony in Lagos, recently, where the PETAN executive, led by its chairman, Engineer Wole Ogunsanya, said “The award is to acknowledge Country Chair’s leadership of Shell and the long running relationship between PETAN, PETAN member companies and Shell.”

Ogunsanya said, “Shell has been a leader in driving the growth of local capacity participation in the Nigerian oil and gas industry. Several of PETAN members had their first breakthroughs with Shell while even more are currently providing services to Shell Companies in Nigeria.

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“PETAN member companies pledge to consistently deliver quality products and services to Shell in particular.”

He also expressed appreciation for the Shell partnership with PETAN and the Nigeria Content Development and Monitoring Board (NCDMB) in the Shell-PETAN Internship program that is giving young Nigerian graduates the opportunity to have a two-year on-the-job training in their respective disciplines, to enhance their employability.

“This program has been a resounding success with several of the interns retained by the participating members”, Ogunsanya said.

Country Chair, Shell Companies in Nigeria, Okunbor, thanked the PETAN delegation for the recognition.

He said, “The growth of participation of indigenous companies in the oil and gas industry is a good thing. Shell companies in Nigeria retain the commitment to continue to create opportunities for Nigerian companies to participate in our business.

“For example, in 2023, SPDC, Shell Nigeria Exploration and Production Company (SNEPCo) and Shell Nigeria Gas Limited (SNG) awarded $1.98 billion in contracts to Nigeria-registered companies, marking a 3% increase in value from the previous year. SCiN also directly employed more than 2,500 people (of whom 96% were Nigerian nationals) with over 9,000 contractors supporting operations.”

Okunbor reiterated that Shell has invested in game-changing businesses in Nigeria for over 60 years and will continue to power progress, positively impact lives, and unlock opportunities.

The Petroleum Technology Association of Nigeria (PETAN) is an association of Nigerian indigenous technical oilfield service companies in the upstream and downstream sectors of the oil and gas industry. PETAN was formed in 1994 to bring together Nigerian oil & gas entrepreneurs to create a forum for the exchange of ideas with the major operators, industry stakeholders and policy makers. PETAN is celebrating its 30th anniversary in December 2024.