The Socio-Economic Rights and Accountability Project (SERAP) has called on President Bola Tinubu to direct the Nigerian National Petroleum Company Limited (NNPCL) to reverse the recent petrol price hike, the second within a month, pending the resolution of an ongoing court case.
SERAP had earlier filed a lawsuit challenging the NNPCL’s authority to raise petrol prices, arguing that the increases were illegal.
In a letter dated October 12, 2024, signed by SERAP’s deputy director, Kolawole Oluwadare, the organization expressed concerns that the latest increase, which pushed petrol prices from ₦897 to ₦1,030 per litre, undermines the integrity of the judicial process.
The letter emphasized that the price hike not only jeopardizes public confidence in the court but also risks prejudicing the ongoing case before the Federal High Court in Abuja.
SERAP’s lawsuit, filed in September 2024, challenges the legality of the NNPCL’s authority to unilaterally increase petrol prices.
The group also calls for an investigation into allegations of corruption and mismanagement within the NNPCL. The recent petrol price hikes have caused widespread public concern, with the first increase in September raising prices from ₦600 to ₦855 per litre.\
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The group’s legal action also points to the broader issue of accountability, citing a 2020 report by the Auditor-General of the Federation, which revealed that the NNPCL failed to remit over $2 billion and ₦164 billion of oil revenues to the Federation Account.
SERAP argues that the unresolved financial mismanagement within the NNPCL further complicates the justification for the price increases.
SERAP contends that the petrol price hike violates the principles of the rule of law, a key tenet of the Nigerian Constitution. The group emphasized that it is in the public interest to maintain the authority of the court and allow the judicial process to take its course without interference.
“Increasing petrol prices while the Federal High Court case is pending would undermine the ability of the court to deliver justice,” SERAP stated in the letter.
The organization also reminded President Tinubu of his promises to uphold the rule of law, as expressed in his inaugural speech when he assumed office in May 2023.
SERAP warned that failure to reverse the price hikes could lead to legal actions, including contempt proceedings, against the government and the NNPCL.
SERAP highlighted that the recent price hikes would have serious consequences for the most vulnerable Nigerians, as well as the broader public interest.
With petrol prices reaching record highs, many Nigerians are already struggling with the economic burden caused by inflation, high transportation costs, and declining purchasing power.
“The continuous increase in petrol prices, despite an ongoing legal challenge, could further erode trust in public institutions and worsen the economic hardships faced by ordinary Nigerians,” SERAP added.
The group stressed that immediate action is necessary to protect the integrity of the judicial process and mitigate the impact on the most disadvantaged citizens.