Socio-Economic Rights and Accountability Project (SERAP) has called on President Bola Tinubu to direct the Nigerian National Petroleum Company Limited to immediately reverse the latest hike in petrol prices within a 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.
SERAP in a statement by Deputy Director, Kolawole Oluwadare, on Sunday, said it had last month filed a lawsuit against the President and NNPCL “over the failure to reverse the unlawful increase in the pump price of petrol, and to probe the allegations of corruption and mismanagement in the NNPCL.”
The group stated that 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.”
It added that, “One of the fundamental principles of the rule of law is that it applies to everyone, including presidents and CEOs of public institutions.
“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.”
SERAP stressed that 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 added, “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.”
It also warned that if the latest fuel price hike is not immediately reversed, it would seriously undermine the integrity of the Nigerian Constitution and have serious consequences for the most vulnerable and disadvantaged citizens and public interest.
The statement pointed out that protecting the right to a judicial recourse and due administration of justice is of utmost importance, being the cornerstone of an ordered society.
It said 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.
According to SERAP, 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,” it stated.
SERAP noted that the Nigerian National Petroleum Company Limited had recently increased the price of premium motor spirit (PMS), also known as petrol, across its retail outlets, saying that 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, now Nigerian Upstream Petroleum Regulatory Commission (NUPRC).”
SERAP further stated that the NNPCL had failed to account for missing public funds, pointing out that the Auditor-General wants the money recovered and remitted into the Federation Account.
It stated, “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.”
The organisation stressed that increasing petrol prices would compromise the interest of the Applicant in the Federal High Court case filed against the Federal 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 based on facts and in accordance with the law, without any improper interference, direct or indirect,” SERAP noted.
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