The Socio-Economic Rights and Accountability Project (SERAP) has called on President Bola Ahmed Tinubu to reverse the recent increase in fuel prices, warning that the hike could harm vulnerable Nigerians and compromise the ongoing legal battle against the price rise.
In an open letter dated October 12, 2024, SERAP urged President Tinubu to direct the Nigerian National Petroleum Company Limited (NNPCL) to roll back the new fuel prices, which had increased to N1,030 per litre. This represents the second increase in fuel prices within a month, a situation SERAP argues could severely impact Nigerians, particularly the disadvantaged.
The organization, represented by its Deputy Director Kolawole Oluwadare, emphasized the need to halt the price hike until a pending court case at the Federal High Court in Abuja is resolved. The lawsuit challenges the NNPCL’s authority to impose the price increases and accuses the organization of corruption and mismanagement of public funds.
SERAP has been at the forefront of advocating for transparency and accountability in Nigeria’s oil and gas sector, consistently calling out government agencies and officials over the mismanagement of resources and the negative effects of such actions on ordinary Nigerians.
Allegations of Corruption and Mismanagement at NNPCL
At the heart of SERAP’s legal battle is the allegation that the NNPCL has not been transparent in its operations, particularly in the management of oil revenues. SERAP has cited the 2020 audit report by the Auditor-General of the Federation, which revealed that the NNPC (now NNPCL) failed to remit over $2 billion and N164 billion in oil revenues to the Federation Account.
The group has also raised concerns about the NNPCL’s failure to account for other public funds, including over N151 billion that the corporation allegedly deducted from oil royalties without justification. The Nigerian Petroleum Development Company (NPDC), a subsidiary of the NNPCL, has also been accused of failing to account for more than $2 billion in royalties collected from crude oil sales.
SERAP’s letter stated, “The NNPCL has failed to account for the missing public funds. The Auditor-General wants the money recovered and remitted into the Federation Account, and for those responsible to be handed over to the Independent Corrupt Practices and Other Related Offences Commission (ICPC) and the Economic and Financial Crimes Commission (EFCC).”
In addition to the financial irregularities, SERAP also pointed to the broader issue of corruption within the NNPCL, which it claims has led to inefficiencies and the current fuel scarcity in Nigeria. According to the organization, suppliers have refused to import petroleum products for the NNPCL due to the company’s reported $6 billion debt, leading to a fuel shortage that has driven up prices.
Legal Battle Over Fuel Price Hike
SERAP’s lawsuit, which was filed in September 2024, challenges the lawfulness of the initial fuel price increase, which saw the cost of petrol jump from N600 to N855 per litre. The second increase, which took the price to over N1,000 per litre, has only heightened the organization’s concerns.
In its letter to President Tinubu, SERAP warned that the most recent fuel price increase could interfere with the Federal High Court’s ability to deliver a fair ruling on the matter. The group argued that raising fuel prices while the case is still pending could “prejudice and undermine the ability of the court to do justice” and erode public confidence in the judiciary.
“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, and impede the course of justice,” the letter read.
SERAP also stressed that reversing the latest increase in fuel prices would allow the court to “render a decision on the central issues in the case” and ensure that the legal process is not compromised by external actions.
The group has warned that if its request is ignored, it will consider pursuing contempt proceedings against the government and the NNPCL to compel them to comply with its demands. SERAP has consistently maintained that its fight is not just about the legality of the fuel price hike but also about ensuring transparency and accountability in Nigeria’s oil and gas sector.
SERAP’s Concerns for the Most Vulnerable Nigerians
Beyond the legal and governance concerns, SERAP has also highlighted the severe impact that the rising fuel prices could have on the average Nigerian. With the price of petrol now over N1,000 per litre, many Nigerians are struggling to cope with the increased cost of transportation, food, and other essential goods.
In its letter, SERAP noted that the fuel price hike would disproportionately affect the most vulnerable and disadvantaged Nigerians, exacerbating poverty and inequality in the country. The group warned that the current economic situation, coupled with the rising cost of living, could lead to widespread hardship if urgent action is not taken.
“The latest increase in petrol prices, if not immediately reversed, would seriously undermine the integrity of the Nigerian Constitution and have serious consequences for the most vulnerable and disadvantaged Nigerians,” SERAP stated.
SERAP further argued that the government’s decision to increase fuel prices in quick succession reflects a disregard for the economic realities faced by many Nigerians. The organization called on President Tinubu to prioritize the welfare of the people and reverse the price hikes until the court has had an opportunity to rule on the matter.
