Femi Falana (SAN), a human rights attorney, has criticized the Nigerian National Petroleum Company Limited (NNPCL) for its decision to set the price of gasoline originating from the Dangote Refinery.
Falana declared in a statement on Tuesday that the NNPC’s behavior constituted a flagrant breach of the Petroleum Industry Act (PIA).

He claims that since the government deregulated the industry and declared that the nation’s fuel prices would be set by market forces, the NNPCL is not allowed to set the price of gasoline.

He stated: “On September 5, 2024, the Nigerian National Petroleum Corporation Limited (NNPCL) announced that, as allowed by the Petroleum Industry Act (PIA), foreign exchange (forex) illiquidity had been a major factor influencing the fluctuation in Premium Motor Spirit (PMS) prices, which were governed by unrestrained market forces.

“At the relevant period, the NNPCL explained the PMS import pump price. Petroleum prices were to be set by free market forces, according to Section 205 of the PIA, which founded NNPC Ltd., specifically stated by Mr. Adedapo Segun, Executive Vice President of Downstream NNPC Ltd. He claims, “The market has been deregulated, thus the forces of the market now set petrol pricing instead of the government or NNPC Ltd. Furthermore, the exchange rate plays a significant role in influencing these prices.”

However, the NNPCL has set the price of PMS manufactured by the Dangote Refinery and Petrochemical Company Limited, in contradiction to the widely reported remark. Section 205 of the PIA, which states that market forces shall decide petroleum product prices, is violently violated by the NNPCL’s actions.

Falana further contended that it is sabotage for the national oil company to sell gasoline from the refinery at prices greater than those of imports, adding that the ₦950 minimum price per liter imposed by the NNPCL for gasoline from the Dangote Refinery is not justified.

The attorney continued, saying it is incorrect for the NNPCL to defend the exorbitant price by claiming it purchased petroleum from Dangote Refinery in dollars when the government had approved that both parties should deal in naira.

“Furthermore, the NNPCL cannot justify the sale of petrol at N950 per litre without freight cost, lightering cost, jetty depot fees, storage fees, foreign exchange costs, NPA charges: NIMASA charges, Customs duties, etc., since the petrol sold by Dangote, is not imported into the country but is produced at the Lekki Economic Free Trade Zone,” he continued. The NNPCL has demonstrated its will to keep undermining the domestic economy by recklessly importing cheaper gasoline from abroad at a price the country cannot pay by setting a higher price for the gasoline produced by Dangote Refinery.

“The NNPCL has defended the increase by stating that the Dangote Refinery sells gasoline in US dollars. Given that the Federal Executive Council (FEC) has ordered that crude oil be supplied to Dangote Refinery in Naira, why should the NNPCL purchase gasoline in US dollars? Are the management employees of NNPCL and Dangote Refinery unaware that refusing to take naira as payment for any transaction in the nation is illegal under section 20 of the Central Bank Act?

Falana also objected to the NNPC’s decision to become the exclusive purchaser of gasoline from Dangote Refinery, contending that other retailers ought to have direct access.

He urged the FCCPC (Federal Competition and Consumer Protection Commission) to rein in the NNPC’s monopolistic practices.

Furthermore, the NNPCL’s exclusive procurement of gasoline from Dangote Refinery is entirely in violation of section 205 of the PIA, both in law and spirit. As a result, other marketers ought to have the freedom to buy gasoline straight from Dangote Refinery and distribute it to stations throughout the Federation’s states. Falana stated that the NNPCL should no longer have monopolistic control over the gasoline produced by Dangote Refinery, as directed by the Federal Competition and Consumer Protection Commission.
On Sunday, NNPCL formally started removing gasoline from the Dangote Refinery.

Additionally, the NNPCL declared that the product would retail in Lagos State for ₦950 per litre and its environs, and above ₦1000 per litre in states such as Borno.